
A billion dollars is a lot of money in anyone's eyes. Especially if it's a government pledging $1 billion to a specific problem that doesn't affect all New Zealanders.
So it feels strange to call it a drop in the ocean but that's what it is.
At the National Party conference in the weekend the Prime Minister announced a new $1 billion fund to fast-track infrastructure development by the Auckland, Hamilton, Tauranga, Christchurch and Queenstown councils. It's for things such as water and roading development so new houses can be built to relieve our housing shortage.
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The Government will borrow the money, then lend it to the Councils who'll then have to get ratepayers to pay it back somewhere down the line. So it's certainly not free money. It's just changing the lender the councils borrow from.
Now to put this billion dollars into context. Auckland Council alone has already told the Government it's going to need $17 billion for infrastructure. A measly $1 billion shared with 4 other cities is not going to make a huge difference. That's why I call it a drop in the ocean. But at least it's a government taking responsibility after decades of blamestorming the councils.
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A common complaint repeated by the Government is that it's all the Council's fault for not opening up land. But the Unitary Plan which could be passed within months has over 11,000 hectares to be opened up - equivalent to 3 Hamiltons. Plus it aims to intensify the city but the Nimby's are desperate to stop that. The land is already being opened up. So that's a red herring. How about some real issues.
In Hamilton Mayor Julie Hardacre said there's enough land available for 3 years of growth. Her problem is that she can't force the developers to get off their bums and start building. Councils want timeframes that developers can hold consents reduced so that they have to crack on or lose it. Right now they just hold on to the land as long as possible to maximise their capital gain - land banking. Councils have been asking for this for ages, so come on National, just do it.
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Then there's all the argy bargy about Council red tape around developments. Some of that is true but a lot of that red tape has come from government. The Resource Management Act. This Government has been vowing to reform the RMA for 3 elections now but somehow seems to find one reason or another to weasel out of it. Come on National, just do it.
Building legislation. It's become increasingly prescriptive due to the leaky homes scandal which has cost our economy tens of billions of dollars. So Councils end out dithering around doing the admin work to enforce the Government's laws. How about putting a red line through some of the wackier stuff there.Â
Sometimes listening to Nick Smith you'd think the Government is blameless in this whole Snafu. Well they're not.
But thank you for the billion dollars you've borrowed on our behalf. It's a bandaid on a festering sore but at least it shows you're starting to care.
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