2 June 2016

National Policy Statement only part of the answer to Auckland housing crisis

Aucklanders just want their housing crisis solved and they want Council and government working together to do that rather than squabbling about it, says Auckland Mayoral candidate Phil Goff.

“The Government’s release of a National Policy Statement on Urban Development Capacity shows it finally accepts that there is a housing crisis in Auckland, but the statement only provides part of the answer,” he says

“The National Policy Statement is a step in the right direction because it at least acknowledges what the Government has previously denied – that there is a housing crisis in Auckland. However, Auckland needs a more comprehensive answer than this if the problem is to be remedied.

"The city’s infrastructure, including housing and transport, simply can’t cope with the burden of its growing population as 800 extra people move to live in Auckland every week.

"The problem is both a supply and a demand one. If the Government wants to maintain supercharged immigration levels - currently at a record high of 70,000 a year - it has to ensure that the infrastructure is in place to cope with that growth. Without the investment in infrastructure, the quality of life of all Aucklanders will suffer with extreme unaffordability of housing and gridlocked roads.

"House prices are pushed up if there isn't an adequate supply of land to build on. So it’s important to address that issue. But then to be able to build on that land, you need the right infrastructure in place including water, waste-water and transport. That’s a massive financial headache for Auckland given the forward cost of that is estimated at $17 billion", he said.

"Treasury has warned Government that Auckland cannot borrow or rate to meet that cost. Therefore, Government should raise the funds needed through infrastructure bonds to on-lend to Council or let Auckland City issue those bonds itself, with the ability to raise revenue to service them. That is the heart of the problem.

"Of course Auckland has to zone enough appropriate land to let the city grow up and out and the Council’s response to the Independent Hearing Panel's recommendation is critical to that. But Government also has to act to stop land banking and discourage the rampant speculation that is forcing house prices up. It should also partner with the private sector to ensure an adequate supply of affordable and social housing.

"The answer has to be a comprehensive one and it needs to be collaborative between Council and Government. Government needs to partner with rather than dictate to the people of Auckland who will choose a new Council to represent them in just four months’ time," said Mr Goff.

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