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

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news