Andrew Williams MP

Spokesman for Local Government
31 July 2014

Home Building Won’t Be Cheaper with Levy Change

Claims that home building costs will drop with changes to developers’ contributions are balderdash,” says New Zealand First Spokesman on Local Government, Andrew Williams.

“Removing the development contribution for community infrastructure will do nothing for home owners in the grand scheme, when Kiwis are paying hundreds of thousands to build a home.

“The reduction will only be $750 to $1000 on a section under the new Local Government Act 2002 Amendment Bill (No.3) passed this week. Whether the levy is there or not will not determine the price – it is the market that will set the price.

“Indeed, removal of the levy will probably just increase the enormous profits that developers make – who are no doubt National Party mates and donors.

“It will impose pressure on councils and may mean that important community facilities like pools, libraries and playing grounds are delayed.

“Oddly, the government keeps criticising local government for increasing rates, yet it is now cutting off one of the few mechanisms for funding community infrastructure.

“During consultation on this legislation, developers said it would be a nominal amount, and may well affect their ability to sell the development as the facilities would not be built.

“This is manipulation by a government desperate to pretend it is doing something about housing for New Zealanders. We see through the mask and that’s why New Zealand First voted against the legislation in Parliament. We will put it right after September 20,” says Mr Williams.

ENDS

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