Building industry not a cash cow for local govt

11 October, 2005 NEWS RELEASE

Building industry not a cash cow for local govt

The building industry must not be regarded as a cash cow for local government says the Chairman of the Construction Industry Council John Pfahlert.

He said proposals by the Auckland Regional Council to impose a special levy of $5000 on each new dwelling in a sub-division to pay for rail commuter transport was outrageous.

“This industry already faces burgeoning and controversial charges imposed by many local authorities for consent and compliance activities. These costs are pushing up the price of new housing. On top of this comes the suggestion from the ARC of a special levy to pay for transport.

“Is it any wonder that prospective first home owners are facing great difficulty in finding a home that fits their budget? The worst feature of the ARC proposal is that it has the power to impose the levy region-wide and consequently impact on thousands of new home sub-division buyers who would not be serviced by rail.

“This industry is not a cash cow for governments at any level. Increases in building costs feed right through communities and into the inflation indexes.

“I hope the ARC’s transport chairman Joel Cayford will think again on this proposal and consign it to the rubbish bin. Should he proceed to try and implement it he can expect a robust reaction from the industry as a whole.”

ENDS

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