Mum and dad are paying cost of local govt failure

Media Statement
5 July 2007

Mum and dad are paying for the cost of local government failure

The increasing cost of commercial and residential property development is being significantly driven by land containment, and by the failure of local authorities to process building and resource consent applications in compliance with legal deadlines, according to the Property Council of New Zealand.

Connal Townsend, Chief Executive of the Property Council, said his Members confirmed what has been long suspected: New Zealanders are paying a high price for inefficiency, delays and spiraling planning and compliance costs.

“The findings of the survey of Property Council members serves as yet another warning to the government, Parliament and the local government sector. Delays in the processing of building consents and resource consents are impacting on the bottom line, and those who can least afford to pay are picking up the tab.

“Compounding compliance costs flowing from the local government sector are passed on to the end purchaser. Parliament needs to seriously consider the inflationary public policy failures and distortions created by the local government sector. Property Council members at the coalface are saying that the cost of obtaining a building consents and resource consents are impacting both in terms of costs up front and the stand-down costs associated with delays.

“Clearly a strong public policy response from the government is needed, starting with an overhaul of the Building Act 2004, the Local Government Act 2002, and the Resource Management Act 1991. The Property Council also considers that changes are needed to the Land Transport Management Act 2003 to reduce the burgeoning cost of consultation as well as the expensive impact of project delays required by Transit New Zealand.

“Both territorial and regional authorities must also be held to account for pursuing land containment policies that artificially drive up the price of land. If New Zealanders could build up as well as out, that outcome would help offset the spiraling cost of land development,” Connal Townsend said.

The Property Council surveyed its members on a range of public policy topics. Members were invited to provide both quantitative and qualitative responses, which have subsequently been analysed. Key findings from the survey include:

• 81 per cent of Property Council members always or often experience delays in local councils processing building consents.

• 83 per cent of Property Council members always or often experience delays in local councils processing resource consents.

ENDS

See... Full Results (PDF)

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