Planning system is failing New Zealanders

Planning system is failing New Zealanders

Urgent intervention on the planning system is needed, after a damning draft report from the Productivity Commission on Using Land for Housing, released today.

The report highlights many land use rules that affect the cost and supply of housing – costs that don’t match the likely benefits of those rules.

Property Council chief executive Connal Townsend said that for the planning system to work better, land to be used more efficiently, regulations to better match the costs with benefits, and for the costs and risks of infrastructure to stop constraining growth, local authorities need District Plans that understand commercially viable development.

“There is a whole shift needed in the way we view planning and development controls in New Zealand. For too long, overly restrictive rules and disjointed planning Acts and ill-managed assets and infrastructure funding has come in the way of city building and a better planned, more affordable urban environment.

“The Productivity Commission has recognised the need for Resource Management Act amendments to clarify the role and importance of housing and urban environments, because cities are national assets.

“Local authorities need better national direction from the Government and a more integrated approach to planning where national and local interests are better aligned – particularly regarding infrastructure.”

The draft report finds that because existing home owners benefit from a restrictive supply of new houses, homeowners have a disproportionate influence in local council processes. It finds that as a result, council land use rules effectively protect the interests and wealth of those who already own housing, to the detriment of those who do not.

In its 2015 Manifesto released in January, Property Council asserts that local body politicians largely ignore or misunderstand the overall effect of how planning requirements and consenting processes culminate to deter development or push up house prices.

Property Council has been calling for the Government to insist that local authorities consider how their District Plans affect the viability of new housing developments for this very reason. If councils make it too strenuous and costly to build, not only will the massive delays in addressing the housing crisis continue, but developers are forced to pass costs to the customer – making houses even more expensive for Kiwi families.

“In our manifesto we set out three key challenges for central and local governments and industry: real collaboration, holistic policies that consider all relevant factors, and balanced decisions.

“What does it mean? It means we want, through the RMA reforms, for councils to know, understand and willingly consider the implications of consenting decisions on building. Otherwise, we’re going to have the same problem we’ve had for ages: houses being too hard and too expensive to build and customers being asked to cough up the costs.”

ENDS

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