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Big overseas building companies 'using bullyboy tactics in NZ'

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Fuseworks Media
Fuseworks Media

Large offshore construction companies are using Mafioso style tactics in New Zealand that have forced some small operators out of business, says New Zealand First.

"We have heard reports of bullying, price screwing and stand-over tactics which are new to New Zealand," says New Zealand First Leader and Member of Parliament for Northland Rt Hon Winston Peters.

"These large overseas companies are winning government contracts then screwing down New Zealand sub-contractors further on what has been an agreed price, withholding and not paying their accounts for 90 days and then holding the retention payments for a period of time that is not justifiable.

"It’s clear mega-contractors in the New Zealand market have driven down profit margins forcing some small operators out of business.

"Long-standing New Zealand companies are now also refusing to do any work for these big overseas companies.

"A code of conduct for big contractors and a Commerce Commission investigation must now be considered to clean up this situation," Mr Peters says.

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