Break down legislative barriers to realise economic potential
Break down New Zealand’s legislative barriers to realise economic potential
It’s time for the Government to rethink the role of local authorities and the amount of red tape that restricts commercial growth and development in New Zealand, says Property Council New Zealand.
Property Council’s new policy manifesto, Fast-Forward to Growth, calls for an integrated and focussed approach to development. This can only be achieved if central government leads the charge for reform.
Commercial property is the infrastructure of business in New Zealand. Yet Property Council chief executive Connal Townsend said the Government needs to realise the industry is suffering from poor policy decisions from the past.
“The Government needs to adopt a common sense approach to its legislation to help foster growth. In particular, we believe further reforms are needed to the Local Government Act and Resource Management Act to achieve efficiency at a local level. Territorial authorities should place more focus on core operating functions.”
Property Council is calling for a greater degree of integration between national and local infrastructure plans. Mr Townsend said until this is achieved, New Zealand is not going to make any progress streamlining planning, funding and developing essential projects in New Zealand.
“If the Government is really serious about getting infrastructure developed, it should ensure that 20 per cent of New Zealand Superannuation funds are invested back into New Zealand.
“At a local level, the public infrastructure needed to make successful commercial property developments work must be funded. However, the current system of development contributions is ineffective and must be reviewed. Any new funding arrangement must be transparent and fair.
“The problem with the current development contributions model is that it acts as a disincentive to development, and it is one of the factors that make houses unaffordable. This is unfortunate because investment in bricks and mortar is a proven way to build wealth.”
Property Council will be launching Fast-Forward to Growth on Friday 9 March in Auckland, Tuesday 20 March in Wellington and Monday 26 March in Waikato.