Evan Davis, Todd Property chief executive, says his company had to spend so much on its 160ha Long Bay development on Auckland's northern outskirts that cheap housing was not an option.
"When you've paid what we've paid for infrastructure that nobody else provided and when you've taken 13 years to get here, the possibility of providing that kind of [affordable] outcome is precluded.
"It's just taken too long and cost too much," he said, describing roading, a new pump station, settlement ponds and pipelines.
Property Council chief executive Connal Townsend welcomed an overhaul of the system.
"We've been advocating these changes for seven years. We've been in despair and our arguments have not been listened to and this report goes to the nub of every single issue and we can't fault the analysis," he said of the document.
"We're delighted by it. Development contributions killed the Auckland apartment market stone dead. If the changes Internal Affairs are advocating were enacted, it would make it a lot cheaper."
The paper says Auckland Council spends $1.6 billion of the $3.6 billion and this pays for roading, transport, water supply, waste water, solid waste, recreation and sport.
Contributions are used by 45 councils and 18 councils do not charge them. Only 4 per cent of costs to build a 145sq m Auckland house are development contributions, Internal Affairs says.
What it costs
145sq m Auckland house
*36 per cent land, zoning, subdivision, infrastructure
*30 per cent materials
*19 per cent labour
*6 per cent builders' profit
*4 per cent development contributions
*3 per cent consents and legal fees
*2 per cent plant
[Source: Internal Affairs development contribution review]
