Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Watercare Price Rise a Concern

Watercare Price Rise a Concern


Property Council is concerned with Watercare’s increase of its Infrastructure Growth Charges (IGC) and consequential impacts on development costs and housing affordability.

From July 1, Watercare will raise the IGC from $9,775.00 inc. GST per Household Unit Equivalent (HUE) to $12,075 for metropolitan customers, an increase of 23.5%.

The IGC increase is worrying as it is likely to directly impact on the cost of a new house by increasing development costs. This is analogous to the situation with development contributions where the Productivity Commission and Central Government have both acknowledged the implications of development contributions on increasing the cost of a new house.

Property Council considers the IGC is in effect a development contribution; i.e. a charge for infrastructure required by development, even though technically it may not be considered as such under the Local Government Act 2002.

Currently there is no uniform method of charging development contributions across the country.

This has resulted in instances where councils charge developers inappropriately. The Government has recently proposed changes to legislation to make development contribution charges more equitable and transparent. Similarly, Watercare must ensure its charges are fair and cost reflective.

Property Council Auckland President Miles Brown says the increase in IGC’s seem disproportionate.

“These charges must be realistic and not overinflated, otherwise the cost of housing will continue to increase and exacerbate the current housing crisis.”

Property Council would encourage Watercare to ensure its charges are properly cost-reflective to avoid the unintended consequence of dampening development.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news