Industry backs proposal
The National Party has proposed a new bill to urgently address New Zealand’s land supply problem and help councils fund supporting infrastructure.
Leader of the Opposition Judith Collins has drafted and proposed The Housing Emergency Response (Urgent Measures) Bill to develop more houses quickly.
The Party expects the draft legislation to introduce emergency powers similar to those used to increase house building in Canterbury following the 2010 and 2011 earthquakes. It also aims to incentivise councils by providing a $50,000 grant for every new dwelling consented over and above a historical average.
“National doesn’t share Labour’s view that you can tax your way out of a housing shortage,” Collins said.
“The time has come for an extraordinary solution to this unfolding emergency. We need to short circuit the faltering Resource Management Act to get more houses built.”
The industry has welcomed National’s proposal, with the New Zealand Initiative (Initiative) commenting that the proposed bill would make it easier to build a home.
“The Initiative has always said red tape from councils in our largest cities is the result of bad incentives,” said Initiative executive director Dr Oliver Hartwich. “We need to reward councils and communities when they allow developments to go ahead.”
The Initiative is calling for a Parliamentary consensus that supply is the solution to housing affordability.
“Only a credible commitment by Parliament to fundamental reforms will improve housing affordability. That is why we are calling for a cross-party consensus on housing supply,” Hartwich said. “We ask the Government to support National’s bill or introduce its own legislation to free up land, pay for new infrastructure, and reward councils who allow development.”
The New Zealand Taxpayers’ Union has also welcomed the proposal but has concerns about the “blank cheque approach” to giving councils more money.
“The biggest constraint to affordable housing is inflated land costs,” said New Zealand Taxpayers’ Union spokesman Jordan Williams. “Forcing councils to address that is a good first step and is certainly better than the government’s plan: hiking the tax burden on housing investment.”
“But, like the government, National is falling into the trap of thinking local councils are short of money. The fact is, despite doubling in size over the last 20 years, councils are putting a much smaller proportion of their income back into capital investment. Throwing money at a sector that is bloated and wasteful, without requiring the money to be spent on roads and pipes may just make the problem worse.”
