Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Council development charges reined in to assist housing

Hon Dr Nick Smith
Minister of Housing

Hon Chris Tremain
Minister of Local Government

15 August 2013

Council development charges reined in to assist housing affordability

The Government has decided on changes to the Local Government Act to rein in council development contributions to improve housing affordability.

“We are going to narrow the charges councils can put on new sections, provide an independent objections process and encourage direct provision of necessary infrastructure to get costs down,” Housing Minister Dr Nick Smith and Local Government Minister Chris Tremain say.

“Development contributions have trebled nationally over the past decade and have gone up more than any other component cost of a new house. This huge increase can be attributed to the local government law change in 2002 that gave councils carte blanche to charge whatever they liked and removed any check or appeal on these charges. These charges now average $14,000 per section but can be as high as $64,000 per section,” Dr Smith says.

“There is no magic bullet to improving housing affordability and we need action on many fronts to get costs down. This initiative restricting development contributions is part of a package of measures the Government is taking including substantive reforms to the Resource Management Act, the Housing Accords legislation, the inquiry into building materials costs, changes to the Building Act to reduce compliance costs, and the expansion of the Welcome Home Loans and KiwiSaver First Home Deposit Subsidy,” he says.

“Development contributions need to be set in a way that fairly balances the costs that should rightly rest with a new development and those of community benefit that should be paid by general ratepayers. There will always be pressure on councils over rates and we need a check on development contributions to ensure the new home owner is not over-charged,” Mr Tremain says.

“These changes will also restrict what councils can charge in respect of commercial and industrial developments. These charges, if applied beyond the costs of providing the necessary infrastructure, end up as a tax and discouragement on new investment and jobs. The changes mean that councils will only be able to charge for new infrastructure and not recreational facilities or reserves for developments that do not involve residential housing.

“Councils will still be able to charge for infrastructure and resources directly associated with a new subdivision. These changes are about improving transparency, encouraging councils and developers to work innovatively on minimising costs through development agreements and ensuring funds collected for infrastructure in an area are spent as intended.”

Changes to development contributions was recommended by the Productivity Commission’s 2012 report into housing affordability and are included in the Government’s Better Local Government reform programme. A discussion paper was released in February and final decision on the policy changes made by Cabinet on Monday. The law change will be included in a Local Government Reform Bill to be introduced to Parliament later this year.

The Cabinet Paper can be found at www.dia.govt.nz/Better-Local-Government#development-contributions

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On How America’s Middle East Allies Are Poisoning The Ground Joe Biden Will Inherit

As even the US mainstream media has been reporting, the prime motive for the murder of Iran’s top nuclear scientist Dr. Mohsen Fakhrizadeh (by Israeli or Saudi operatives, or both) has been to poison the situation that the next US president will inherit. At best, there was only an outside chance that the incoming Biden administration and the outgoing liberal regime of Iranian PM Hassan Rouhani could have revived the Iran anti-nuclear deal that Rouhani had negotiated in 2015 with Barack Obama. Deliberately though, America’s allies have now made it impossible for Biden to pursue that option... More>>

 

WorkSafe: 13 Parties Charged Over Whakaari/White Island Tragedy

WorkSafe New Zealand today filed charges against 13 parties in relation to the Whakaari/White Island eruption in December last year. “22 people have lost their lives in this tragic event. WorkSafe is tasked with investigating workplace incidents to determine ... More>>

ALSO:

Pay Gap: Progress On Pay Equity For DHB Staff

Today’s initial agreement between DHBs and the PSA on pay equity for clerical and administration staff is an important step toward better, fairer pay for this crucial and largely female workforce, Health Minister Andrew Little says. More>>

ALSO:

New Zealand Government: Speech From The Throne

It is my privilege to exercise the prerogative of Her Majesty the Queen and open the 53rd Parliament.
In the October election, New Zealanders elected a majority Government for the first time under our Mixed Member Proportional electoral system... More>>

Media: Stuff Holds Itself Accountable For Wrongs To Māori

Stuff has today published the results of an investigation into itself, and issued a public apology, for the way the media organisation has portrayed Māori, the indigenous people of Aotearoa New Zealand, from its first editions to now. Tā Mātou Pono | More>>

ALSO:

New Zealand Government: To Declare A Climate Emergency

The Government will declare a climate emergency next week, Climate Change Minister James Shaw said today. “We are in the midst of a climate crisis that will impact on nearly every aspect of our lives and the type of planet our children will inherit ... More>>

ALSO:

Economy: Crown Accounts Reflect Govt’s Careful Economic Management

The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance ... More>>

ALSO:


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels