MEDIA RELEASE
15 August 2013
Industry supports curbing unfair development charges
Today’s Government announcement to overhaul the development contributions regime sets new possibilities for development
in New Zealand, including progressing affordable housing, according to Property Council New Zealand.
Property Council has long campaigned for increased clarity and consistency in how local authorities calculate
development contributions, as well as greater transparency on how the money collected is spent said chief executive
Connal Townsend.
“The existing policy frustrates affordable development, and has done so for more than a decade. In reality, development
contributions are passed on to the purchaser and to some extent will always exacerbate housing unaffordability.
“Development contributions are meant to be spent on essential infrastructure to support development. However, all too
often the charges are wrongly used to cross-subsidise other projects – as exemplified in a number of High Court
decisions.
“Going to the High Court is expensive, therefore access to justice is unaffordable to the vast majority of potential
appellants. The proposal for an independent objections process is very positive. It will help ensure increased
accountability for the level of development contributions collected and how they are spent – ensuring greater efficiency
and positive outcomes for local communities.
“It is also vital that local authorities report back on development contribution spending to facilitate accountability.
This is important so that developers and local communities can see how money collected is spent and ensure that it is
actually spent on the essential infrastructure for which it was obtained.”
Property Council will work with the Government to ensure a consistent and fair approach is established across the
country, that costs are allocated appropriately, local authorities are able to plan for and recoup the cost of relevant
investments, and so local communities have quality development and infrastructure.
ENDS