The Government adopts LGNZ’s key recommendation on Fast-track housing

Local Government New Zealand (LGNZ) has welcomed the Government's adoption of LGNZ’s recommendation to further strengthen development contribution rules for Fast-track housing projects.

LGNZ Vice President Dan Gordon said councils had consistently raised concerns that existing ratepayers should not be left footing the bill for infrastructure needed for new housing developments.

"Today's announcement shows the Government is listening. 

"We welcome the Government's decision to include projects with a substantive application already lodged. This strengthening of development contributions was one of the recommendations in LGNZ's four-point plan to ensure growth pays for growth and communities aren't left carrying costs they didn't create.”

"This is a positive step and an acknowledgment that improvements were needed to the way infrastructure costs are recovered under Fast-track. However, they'll come too late for already approved projects, which means that councils still lose out on significant revenue."

“The changes go some way to ensure growth pays for growth, but today's announcement addressed only one element of LGNZ's plan.

"There is still more work to do. We still think there's merit in pausing future referrals, requiring consideration of cumulative effects, and reviewing Fast-track for housing to ensure it works well with the new planning system. 

"We know New Zealand needs more housing and councils are committed to supporting that growth.

“But communities also need confidence that development is happening in the right places, with the infrastructure needed to support it and without creating future costs for ratepayers."

“We'd now like to see the remaining recommendations in our four-point plan progressed. We'd welcome working with Minister Bishop and Minister Watts to make Fast-track work on the ground,” Dan Gordon said. 

Here is LGNZ's four-point plan: 

1. Put a temporary pause on ministerial referrals of housing projects while key issues are addressed.
2. Extend the changes to development contributions to cover projects that have already applied for consideration through the Fast-track process.
3. Require the Fast-track panel to consider the cumulative effect multiple projects could have on a given area.
4. Commission a longer-term review of Fast-track housing to right-size its role in the context of the new planning system.