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

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news