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Review shows planning rules are unresponsive


Hon Bill English
Minister of Finance
19 August 2016

Review shows planning rules are unresponsive

The draft Productivity Commission review of urban planning rules demonstrates that the current system has strengths but is also unresponsive and risk-averse, Finance Minister Bill English says.

Late last year the Government asked the Commission to review urban planning rules and processes, and identify the most appropriate system for land use allocation.

The draft report, released today, finds that while planning systems can contribute positively by regulating negative impacts and organising the infrastructure needed for development and growth, they can also have a detrimental impact if used to steer growth in a particular direction, and are resistant to change.

It finds that a lack of central government guidance has led to decisions that suit local interests, but have caused negative, wider impacts like rising land and house prices.

Mr English says it’s particularly pleasing to see the Commission has identified a shift in planning culture is needed.

“We’ve seen this thinking constrain growth in Auckland, which has caused the land and housing supply issues we’re currently working to resolve, and the Commission has noted the negative effect it has had on low and middle income households.

“The Commission’s draft findings corroborate much of the work the Government is already doing. For example, we’ve already introduced legislation overhauling the Resource Management Act to provide more consistent and responsive planning and to support housing development and business growth.

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“We’re also considering public feedback on a National Policy Statement on Urban Development, which will require local councils to ensure land supply for housing keeps ahead of population and economic growth, as well as looking into the introduction of independent Urban Development Authorities for specific areas of high demand.”

The Commission has recognised the challenges councils face in delivering infrastructure to support land and housing development.

“The Government has also recognised and anticipated this barrier and responded by introducing the $1 billion Housing Infrastructure Fund to enable local authorities to overcome these issues,” Mr English says.

“We asked the Commission to look at ways to ensure future planning regimes are flexible and able to respond to changing demands and I’m encouraged that its draft findings recommend an emphasis that favours development, but with clear limits.

“Most New Zealanders will agree with the Commission that a future planning system will recognise that the natural and built environments require different regulation, and the natural environment must be protected by clear standards. We are already considering legislative options to ensure that.

“It’s important to note this is just a draft report and I encourage interested stakeholders to make submissions.”

Submissions on the draft report are open until 3 October 2016, with the final report expected by 30 November 2016.

Read the full report here: www.productivity.govt.nz


ends

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