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3 Firms Get $90M Contract for Post-Quake Paint

Thursday, September 13, 2012

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Dulux Group, Resene Paints and Valspar Corp. have been awarded a contract worth up to $90 million to supply paint for homes damaged by earthquakes that have rocked much of New Zealand’s South Island.

Greg O’Bierne/ Wikimedia Commons

The September 2010 earthquake and aftershocks left widespread damage in Canterbury and Christchurch, New Zealand.

The companies will provide an estimated 8 million liters of paint for the repair effort organized by the Earthquake Commission (EQC) and Southern Response for Canterbury, news reports say.

That is enough paint for 100,000 houses requiring $10,000 to $100,000 worth of repairs, according to the Industrial Consumables Christchurch Reconstruction - Paint tender posted on the Government Electronic Tender Service website.

Painters’ Group Objects

TVNZ reports that paint “has been a sticking point” in the rebuilding effort, with the Canterbury Master Painters Association calling the original tender "immoral and anti-competitive.”

The group accused the government of shutting out small businesses. Group chairman Paul O'Donnell told the news outlet that the association would oppose the government contract through Can Trades, a lobbying group formed in July to fight the government's management of the $20 billion-plus rebuilding effort.

"This is totally anti-competitive, and the total saving by the government is negligible," O'Donnell said.

Can Trades is made up of master plumbers, master painters and master builders.

The Quake, Aftershocks

In September 2010 a powerful 7.1-magnitude earthquake hit west of the city of Christchurch, New Zealand, according to reports. The region has experienced a number of aftershocks, some in 2012, reports relate.
 
New Zealand lies at the southern end of the “Pacific Ring of Fire,” and above an area of the Earth’s crust where the Pacific Plate converges with the Indo-Australian Plate.

Fletcher EQR is a collaboration set up to organize the earthquake repair work throughout the region.

The paint companies will also have to pay the government a rebate on their paint sales, the report says.

The paint may also be used for the repairs and rebuilds of Southern Response Earthquake Services, the AMI Insurance claims taken on by the government.

The paint will be supplied to contractors through existing trade channels.