Property Council approves Super City structures

Media Statement 3 December 2009

Property Council approves Super City structures

‘Property Council New Zealand has welcomed Rodney Hide’s announcement on the third Bill for Auckland’s super city, saying many of the Government’s key points are in line with the organisation’s own recommendations.

Chief Executive Connal Townsend says Property Council is pleased to see the latest Bill provides a strong basis for corporatised governance of council functions such as water, the waterfront area, property, and city’s economic development – and for less parochial politics.

“This is something that that Property Council has long advocated for in our talks with the Royal Commission, and it’s extremely heartening to see it has been totally endorsed by the Government.” Mr Townsend says he’s also pleased to see that, apart from the Regional Transport Authority, politicians will not be permitted to serve on the boards of other substantive Council Controlled Organisations.

He says the decision to make Watercare the sole water entity, bound to a minimum price policy, will lead to greater transparency.

“These decisions effectively disband the multiple layers of small water companies, and will deny politicians the ability to skim cash out of water and wastewater consumers through higher-thannecessary price paths and dividend policies.” But Mr Townsend says the decision to lock in the interim management structure for three years is unnecessary.

“We don’t believe this will provide Auckland Council with the flexibility necessary if problems are identified during the initial period. This point requires further consideration.” He says allowing local boards to propose ways to generate additional revenue to fund local projects is a positive move.

“This is a big tick for local decision-making. Local targeted rates will benefit local communities and grass roots democracy.” Mr Townsend says Property Council looks forward to examining how the Government intends to ‘clarify’ the use to which development contributions are put.

“We believe development contributions collected for funding the Regional Transport Authority should only be used for growth-related capital works. Development contributions should not be used to plug funding black-holes which have evolved from decades of local government neglect, such as the region’s rail infrastructure. Nor should development contributions be used to fund changes to the existing level of service.”

ENDS

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