What ever happened to the Government’s Development Contribution Policy Review?
It seems to have dropped off the radar. We think that there probably needs to be a contributions regime but don’t think that the current system is working that well and a meaningful review is needed.
Far too often seeing developments stalled because of downstream infrastructure issues and no plans to resolve. Determining a technical solution is rarely a problem but funding the fix is often an issue. Involved in a lot of cases where developers are being told to fund the fix and pay their contributions. Where this isn’t financially viable for a project everything often comes to a grinding halt and far too often there is a domino effect with other developments and a whole area grinds to a halt.
With all the talk of affordable housing and freeing up land for development something needs to change or prices will continue to move up rapidly.
Think that the old Manukau City Council had it right with their system that identified specific issues in an area and the cost to remedy them and then had a contribution regime set up around it. The contributions might have varied area to area and took more management but at least the money people paid went to fixing the issue that prevented them moving forward.
Under the current system too many infrastructure issues that prevent the city moving forward are overlooked and in my view big parts of the city are stalling. Council doesn’t get the contributions it anticipates if development can’t proceed or the first developer out of the blocks gets heavily penalised fixing the issue at their cost plus paying their contributions.