LGNZ welcomes new infrastructure fund for housing development

Local Government New Zealand welcomes the Government’s announcement of a new $1 billion fund for housing infrastructure projects in high-growth cities.

LGNZ President Lawrence Yule says a collaborative approach to solving housing issues is needed and the new fund is a good example of local and central government working together. While LGNZ is still to assess the details of The Fund, it will give councils options that were not previously available to advance housing development.

“We advocated for new tools for dealing with housing problems in July 2015, including alternative options for funding infrastructure and more collaboration between local and central government, so it’s good to see some of these ideas taking root,” Mr Yule says

Mr Yule says addressing affordability is why LGNZ is advocating for a six point programme of action, which includes funding and financing of infrastructure; addressing land-banking; allowing for local government Urban Development Authorities to speed up development; putting in place tax regimes that de-incentivise investment and speculation in residential property; addressing a skills shortage in the construction industry; and addressing an uncompetitive market for building supplies.

On the establishment of Urban Development Authorities, which the Government also signalled it is considering, Mr Yule says it is important that any new body be governed at a local level.

“UDAs are a tool widely used by public sector entities worldwide and will not be the whole solution but can be the catalyst for change. We are keen to have this additional tool for councils to deliver our key projects and to cut through some of the hurdles associated with fragmented land ownership. Getting the design of a UDA right is critical - where the focus is local, local government needs to be fully involved in getting them up and running,” Mr Yule says.

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