Property Council accuses local bodies of unconstitutional scams
Local authorities are abusing their power to levy development contributions, says the Property Council of New Zealand (PCNZ).It alleges this is making home ownership an unaffordable dream for thousands of young New Zealanders.
Tuesday, August 22nd 2006, 12:00AM
by The Landlord
In releasing its policy on development contributions, PCNZ’s national director Connal Townsend urges amendments to the Local Government Act 2002. “Dozens of local authorities throughout New Zealand are distorting the purpose of development contributions and using millions of dollars collected from new property owners to fund capital expenditure which is not growth-related. Not only is this illegal, it is unfair – artificially driving up the cost of commercial and residential development,” Townsend claims.
“The Act needs to be amended to provide for appeal rights. Developers and property owners who are confronted with a bill which can run into tens of thousands of dollars should have the right to appeal the development contribution charged by local authorities.”
“The current lack of appeal rights gives local authorities carte blanche power to charge a development contribution which is often grossly excessive and not reflective of true growth-related costs.”
“While the Property Council acknowledges that existing communities suffer because many local authorities are inefficient and have failed to build infrastructure, new communities should not be legally responsible for picking up the tab for decades of political neglect and mismanagement,” says Townsend.
“ Unless Parliament intervenes, local authorities will continue to administer development contributions policy scams which make housing and commercial property development unaffordable and drive up transport costs as people seek affordable housing in remote locations, often far removed from paid employment.”
The Property Council says it represents New Zealand’s commercial, industrial, retail, property funds and multi-unit residential property owners.
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