Principles of well being a hot political topic

Veronica from Manakau

Last year the Government announced plans to re-introduce the ability of Council's to collect development contributions for "social, cultural, economic and environmental well-being of communities" as well as for essential infrastructure.

How to fund essential infrastructure already faces what Local Government Minister Nanaia Mahuta has referred to as, "critical funding and capability challenges" which the Government is hoping to address through its 'three waters' proposals including water, waste-water and storm water services.

Perhaps the Government could also look at making Council's collection of development contributions mandatory to ensure all land and property developers contribute a fair and equitable proportion towards the cost increases created by new sub-division and housing activity.

Development contributions are already recognised as one way to generate income to fund the cost of providing essential infrastructure and new services to new housing areas. But what about when the Council where you live has cancelled, or does not collect, development contributions from land and property developers towards essential infrastructure for new houses - much less have any plans to collect development contributions to financially support principles of well-being?

Take Horowhenua as a case study. Horowhenua District Council cancelled development contributions in 2015, on the cusp of an explosion in land and property development that shows no sign of abating. Not only did the Council vote to cancel development contributions in 2015 but in November 2018, when the policy was reviewed, all but two - Mayor Michael Feyen and Cr Ross Campbell - voted to continue with the policy of not collecting development contributions.

The majority of councillors voted against re-introducing development contributions despite an earlier announcement by Council about a 2000 new house Master Plan for north-east Levin and, now, work starting on a 50 house sub-division in south-east Levin.

Based on $18,000 development contribution per new build this could have raised $3.7 million alone for essential infrastructure. Conversely this $3.5 million also represents how much private industry is benefiting from not having to pay development contributions. Another concern is that despite all the land and property development happening in Horowhenua there is a complete lack of affordable and accessible housing options.

The scale of the savings explains why so many land and property developers are swarming over Horowhenua. Meanwhile, the Council is showing no hesitation in charging Horowhenua ratepayers for the necessary increases in service provision as a result of land and property development - which is economically unsustainable for many. This is why development contributions should be collected under Local Government Act provisions rather than left up to Council's to decide.

[Background: i.stuff.co.nz...