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Home / Business / Companies / Construction

Property chiefs hope for RMA, housing reform

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
22 Sep, 2014 01:45 AM4 mins to read

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Property developers are hoping that promised reform of the Resource Management Act will make it easier for them to do business. Photo / Northern Advocate

Property developers are hoping that promised reform of the Resource Management Act will make it easier for them to do business. Photo / Northern Advocate

Property and construction bosses want Resource Management Act reform, Special Housing Areas extended, the creation of more affordable housing in Auckland and Christchurch and perhaps some form of Capital Gains Tax.

Reacting to National's landslide win, they say business now had more certainty and confidence.

• Philip King, Fletcher Building's group general manager of investor relations and capital markets, said business had renewed confidence.

"We are pleased that the election has produced a clear cut result which will provide the business community with the certainty it needs around economic policy and direction for the next three years," King said.

• Peter Thompson, Barfoot & Thompson managing director, said he was not overly concerned about overseas buyers but if there was to be any policy put in place from the new Government to discourage them, a CGT might work.

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"We do need to protect our land and we do that already via the Overseas Investment Office and that's working and maybe that needs to be looked at a bit more and tightened up a fraction. Do we need a CGT on overseas buyers if they're not living in New Zealand? I don't want to see any taxes go on but if there's one, maybe that's one way of starting," he said.

National rejected CGT, which Labour campaigned hard on, although the topic was centre stage at the Herald's Mood of the Boardroom breakfast in Auckland this month when nearly 54 per cent of respondents saw merit in the tax.

Thompson is also frustrated about time delays to Barfoot branch office changes, citing many months of delays and said RMA reform was crucial for businesses like his.

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• Campbell Barbour, NZ Retail Property Group general manager, wants to begin building apartment towers up to eight levels around the Milford Mall on Auckland's North Shore. The Environment Court has already heard the matter and Barbour said resource consents were now being sought so he also wants RMA reform.

"We would like to start in 2015," he said of Milford, so reform could help such big projects like that on the Shore and the $1 billion Westgate new town centre on Auckland's north-west outskirts.

A Mitre 10 Mega is about to open there, while DNZ is building a new mall and Foodstuffs is finishing its new Pak'nSave.

But Barbour is also concerned about lack of cohesion between Auckland Council controlled organisations and the split between water, planning and transport chiefs.

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"They all look at projects differently," he said, telling how that added to delays and costs.

• Connal Townsend, Property Council chief executive, said National's strong mandate gave his multi-billion dollar sector grounds for more hope, confidence, investment and momentum.

RMA reform, the extension of Special Housing Areas and development contributions were top of his mind yesterday.

"We know precisely what they intend to do on the RMA," he said citing a discussion paper released last year and speculating on the value of rolling together aspects of the Auckland Housing Accord with the RMA. Changes could bring more affordable houses to Auckland and Christchurch.

• Auckland housing developer Mark Hackshaw wants the new Government to control local body charges and expressed desperation about massive cost rises creating residential subdivisions.

Ten years ago, reserve contributions to the council and water charges were $5050 per residential lot, he said, covering development contributions including roading and reserves, as well as sewage and stormwater charges.

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"Now, it's $30,000-plus per lot: surveyors costs have increased, engineers costs are up, it's a $15,000 minimum to the council [development contributions] and $15,000 for water charges minimum," he said.

"If National were serious about more affordable housing, they would look closely at getting councils to control their charges. They've gone overboard because they're worried about their backsides and litigation. And they've got cost over-runs -- too many staff. Look at Auckland Council."

Hackshaw built about 150 houses in the last 10 years in Auckland and Franklin and said costs at his new subdivision at Clarkes Beach were prohibitive.

"You now need to pay Watercare $15,000 per lot for a water connection but I got a quote of another $10,000 to get the connection made and joined into the network," he said.

Further, so few drainlayers had certification and qualifications to perform this that he was laughed at when he asked for speed.

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