Project Auckland: MPs sceptical on statutory powers

Phil Twyford says many of the councillors lost their bottle in the final stages of the draft plan process.

The most contentious recommendations from the Productivity Commission are around granting new statutory powers for central Government.

In the past, central Government has generally opted not to become directly involved in planning, except in response to emergencies or specific issues. The Productivity Commission's report explained that may have been to the detriment of New Zealand's best interests.

"Because decision-making about whether to accommodate growth is made at the local level, this can result in a lower level or a slower pace of growth than would be optimal from the perspective of the national economy.

"The decisions that a city council makes about its growth may be at odds with the interests of central government in increasing the wellbeing of New Zealanders that would arise from a city of a larger size.

"The constitutional and institutional arrangements in New Zealand strengthen the role of local government in the planning and development system relative to other countries. As a result, any misalignment of incentives between local and national interests may be more pronounced in New Zealand than elsewhere."

The commission proposed new laws in the same vein as the Special Housing Areas legislation; granting new authority, powers and land use rules for local urban development authorities.

For qualifying developments -- those "having the potential to deliver significant numbers of dwellings" -- a more common and streamlined approach should be made available, including restricting requirements around public notification.

Wider criteria and clearer rules for the use of compulsory acquisition powers were also proposed, with the commission finding that the ability of local authorities at present was both limited and complex.

"The commission's view is that the activity of locally established UDAs should be supported by the availability of compulsory acquisition powers in some circumstances, and that such powers are justifiable to overcome holdout problems in urban regeneration given the wider public interest in access to housing."

Reaction from politicians to being granted new powers to take on a more active role in planning and potentially override local bodies seemed lukewarm however, with a clear preference for finding ways to work together in the first instance.

"My default position is that we always need to take a collaborative approach, because unless you have all of the politicians on the same page, there's always going to be a whole lot of local opposition," explained Nikki Kaye, MP for Central Auckland.

"If you look at where the Government has been successful in special housing areas, it's been Dr Nick Smith getting in a room with a mayor and the other councillors and determining where it makes sense to work together.

"The reality is that we're going to have two million people in the city of Auckland in the not too distant future.

"We can't have a situation where central and local Government aren't on the same page regarding where this land needs to be spread out and what the rules for doing it are.

"I don't care so much what the mechanism is, but ultimately we've got to have a united front on bringing up these pieces of land.

"Whether that means more powers, that's a conversation we still need to have with caucus and cabinet."

Labour housing spokesperson Phil Twyford said in an ideal world, central government would not have to intervene in local government affairs -- but Auckland in particular was leaving them no choice.

"But Auckland Council's draft Unitary Plan failed to sufficiently move the planning rules. Many of the councillors lost their bottle in the final stages of the draft plan process and were basically rolled by a small number of nimbys."

Phil Goff, tipped by many to be the next to lead the Super City, was more cautious than his Labour colleague.

"I think you have to be really careful about granting new powers. The Super City was created in Auckland, consisting of a third of the population, with the view of a partnership with Central Government," said Goff.

Green MP Julie Anne Genter was steadfast in her assertion that central Government not be given increased statutory powers. "It is really important that the National Government isn't given more new powers to override local democracy like they did in Canterbury after the earthquakes."