NZ Politics

The really big issue, especially with the prioritisation of development on the outskirts of the current urban areas, is that councils cannot afford the infrastructure costs to serve these new homes.

I’ll refer to a live Auckland example that I know well. The Supporting Growth programme, led by NZTA and Auckland Transport, has been planning the necessary transport corridors for the next 30 odd years of housing development. The aim is to protect these corridors so that they don’t get built out thus reducing future construction costs, and to give developers clear signals about where the government agencies will invest and in what order.

They are currently submitting notices of requirement. This creates present day property liabilities. There is, however, not enough money to meet the required property purchases and this is completely undeveloped land that we are talking about. The remaining land will be even more expensive in the future. There absolutely will not be enough money in the future to actually build all of the transport infrastructure without some significant funding regime changes, and this is just one example, in Auckland, for transport. It is compounded across all of the high growth urban areas and other horizontal infrastructure like the 3 waters.

So far I’ve only talked about the pure financial cost, but there are other economics costs due to the increase in car travel that will occur. More deaths and serious injuries, higher levels of congestion, increased greenhouse gas and other pollution emissions, etc.

There is a reason that so many professions have been calling for greater intensification and the MDRS, while it wasn’t perfect, was a much better solution AND was originally bi-partisan.