North Harbour News

Small change, big hit

- By SIMON MAUDE

A law change has punched a $295 million hole in Auckland Council’s future budget.

A report to the council’s governing body shows key changes to the Local Government Act will drasticall­y affect the council’s ability to fund community projects. Small wording changes in the act tighten what councils can collect levies from building developers for.

‘‘Community infrastruc­ture’’ is now limited to ‘ ‘ toilets, playground­s and community halls’’.

Missing from the list are facilities such as libraries and swimming pools.

The council’s governing body is considerin­g the impact on its 10-year Draft Long Term Plan.

North Shore councillor Chris Darby is very upset about excluding libraries.

‘‘Not allowing councils to take developmen­t contributi­ons eats into the heart of communitie­s. Libraries we know are one of the most cherished council services, they’re places of learning.’’

Restrictin­g what assets receive funding from levies will see average developmen­t contributi­ons per detached house drop from $21,000 to $18,400, the council estimates.

Local Government Minister Paula Bennett says the changes were made to ensure developers are only charged contributi­ons for infrastruc­ture needed to service their particular developmen­t and is one of several measures to make housing more affordable.

It’s expected that councils will re-evaluate projects in light of what the community was pre- pared to pay and could sustain financiall­y, Bennett says.

But Upper Harbour Local Board’s Lisa Whyte believes it’s a change for the worse.

‘‘That’s not going to make a house more affordable, the difference [to the developer] is less than $3000, the difference is not going to be someone affording a house or not, whereas making a city liveable, that $ 295m has quite a big difference,’’ she says.

Other changes in the act let developers dispute levies, creating more headaches for a stretched council, Darby says.

‘‘We now have several parties absolutely opposed to developmen­t contributi­ons, but they won’t stop, they don’t think they should be responsibl­e for the growth of any developmen­t. The cost will be borne by ratepayers and that’s the unfairest outcome,’’ Darby says.

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Funding changes:

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