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Home / Business / Economy / Employment

Councils to lift building consent fee

By Wayne Thompson
2 May, 2007 05:00 PM3 mins to read

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KEY POINTS:

The cost of getting a building consent in Auckland is rising this year because of extra work required by the Government's new building regulations.

City councils are proposing fees to cover the cost of processing and inspections.

Auckland City last raised fees and charges two years ago but
says a 4.9 per cent rise is necessary to avoid ratepayers' subsidising those who will benefit from the work.

Manukau City proposes a 5.9 per cent rise in hourly rates. Council environment director Ree Anderson said about $3500 should cover the cost of a building consent for a three-bedroom, brick-and-tile house with a garage. This fee would include processing and issuing the consents as well as levies, street damage and a vehicle crossing.

Waitakere proposes increases in its draft annual plan which could raise fees by 31 per cent to $4222.

Fees for alteration and renovation work over a value of $15,000 are now $2659 and it could rise to $3508.

New regulations requiring councils to be accredited as a building consent authority are designed to bring about better performance in building design, control and construction, said Waitakere's planning and regulatory chairman Vanessa Neeson.

"These are much needed reforms after the leaky building fiasco but they do have the effect of increasing compliance costs."

"Ratepayers are picking up new costs and the councils are wearing the blame, while the Government seems to get off scot-free," Mrs Neeson said.

The sum that the North Shore City Council will expect handed over the counter with the application form will go up 35 per cent from $2690 to $3640.

Kelvin Goode, building consents group manager, said $3640 was an estimate of the cost of issuing an average consent.

On picking up the consent, customers would get a refund, or be charged extra according to the actual time spent on the application.

However, the base fee component is $2500 - up from $1500.

"With weathertightness rules we are spending more time on an application,"said Mr Goode.

"We are doing a thorough check and we carry out more inspections on homes with monolithic cladding."

North Shore and Waitakere expect payment for extra inspections of work where monolithic cladding is involved.

North Shore makes six additional inspections which adds $570 to the inspection deposit of $1140 for a home.

Compared with 1999 when the present charges were set, Mr Goode said houses were larger, more complicated and used materials that had to be fixed in a certain way and that took time to check.

Waitakere says that where monolithic cladding systems are used there has to be two additional inspections, which will cost $304.

Auckland City will introduce a levy for building consents to cover the costs of accreditation.

Councils which already charge it say work valued at more than $20,000 will be charged a research levy of $1 and another levy of $1.97 per $1000 of the total value.

Auckland Registered Master Builders president Steve Brackenridge said consent fees were supposed to be based on user-pays.

"But there is concern on the issue of affordability for new home buyers," he said.

"By the time the homeowners have paid their fees and got the plans, they are thousands out of pocket without any work started on the site."

Mr Brackenridge said the fees would be worth it if the councils reduced waiting times for inspections which affected the ability to complete a project in the time and put up costs.

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