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Government Infrastructure Funding is Good News

Government Infrastructure Funding is Good News


Property Council applauds the Government’s infrastructure funding announcement in its draft three-year land transport policy statement.

According to Transport Minister Gerry Brownlee, the plan includes $10.5 billion to 2018, an increase from $9.5 billion for 2012 - 2015.

Property Council has always been a proponent of more transport infrastructure funding. This form of investment has a direct and positive impact on New Zealand cities.

Property development requires viable infrastructure for people to get to and from their places of work and homes and without effective transport infrastructure, city streets will remain gridlocked, especially during peak hours.

With the current housing crisis, development must increase to allow for demand to be met.

Commercial property plays an important role in complementing residential development by providing employment and services to growing populations and adequate transport infrastructure linking communities is critical to this.

This announcement is welcome as Auckland’s transport network in particular, has long suffered from underinvestment, and now more than ever the network is struggling to accommodate the city’s ever increasing population.

Property Council chief executive Connal Townsend says infrastructure, including transport, has been partly and incorrectly funded through development contributions.

“But the Productivity Commission clearly states that loading up these costs onto developers plays a major role in contributing to housing unaffordability – particularly in Auckland where land prices are exponential.

“So it would it is a great step forward to see the Government take action on this than to load historic costs of underinvestment onto developers which has been the norm so far.”

ends

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