BUSINESSDESK: Dulux Group, Resene Paints and Valspar Corp have won a $90 million government contract to supply eight million litres of paint for use in rebuilding houses in Christchurch.
The companies will jointly supply the paint in one of the biggest such tenders ever awarded in New Zealand.
That is enough paint for 100,000 houses requiring $10,000 to $100,000 worth of repairs, says the Industrial Consumables Christchurch Reconstruction - Paint tender posted on the Government Electronic Tender Service website.
Based on eight million litres of paint, "the associated dollar value is about $80 million to $90 million," Ministry of Business, Innovation and Employment spokeswoman Tracey Dillimore told BusinessDesk. It received five bids for the tender, but two were non-compliant.
Paint has been a sticking point in the rebuild, with the Canterbury Master Painters Association labelling the original tender as "immoral and anti-competitive" for shutting out small businesses and erasing their margins.
Chairman Paul O'Donnell told BusinessDesk the association plans to oppose the government contract through Can Trades, a lobby group formed in July amid concern the government's management of the $20 billion-plus rebuild is slashing their earnings and favouring big business.
"This is totally anti-competitive and the total saving by the government is negligible," Mr O'Donnell says.
Can Trades is made up of master plumbers, master painters and master builders.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Trade Me gets fewer snooping requests from govt agencies – but others report mixed results
- NBR's Jenny Ruth outlines the latest development in legal battles in the human resources world
- ‘I can’t understand what their issue is’ – TV3’s Mike McRoberts on Fairfax, NZME’s Rio Olympics boycott
- National's 10% poll jump isn't believable - but the party's support does seem to be holding up
- Nevil Gibson's Editor's Insight names those most affected by the phase-out of ETS subsidies