Home buyers billed to cover expansion

AUCKLAND: Home buyers will pay higher rates and water bills under a new $600 million scheme to address Auckland’s housing crisis.

The Government yesterday announced a new investment vehicle to bring forward construction of 23,300 new homes in the north and south of the city.

Prime Minister Bill English launched Crown Infrastructure Partners with $600 million to fund transport and water infrastructure for big new housing developments which cashstrapped councils suchas Auckland Council cannot afford.

‘‘This is the result of a lot of hard work by councils and central government in how to manage growth on a scale we haven’t had to before [and] a new type of financing vehicle,’’ Mr English said.

The Government and private investors will recoup their investment by charging new residents a special targeted rate and higher water bills over a 20 to 30year period.

Auckland Mayor Phil Goff, who negotiated the scheme with Mr English, said it was premature to know how much the targeted rate and higher water bills would be, but it would have to take into account the cost of infrastructure and be reasonable for residents.

Auckland Council currently has a targeted rate costing residents $118 a year, which was introduced in 2015 to fund transport for three years while alternative funding sources were found.

Finance Minister Steven Joyce said the extra charges on residents would be offset by cheaper section prices.

‘‘The important thing is you have to make it attractive to people, which is why you are doing it over a 20 to 30year period,’’ Mr Joyce said.

He said the Government’s ultrafast broadband company, Crown Fibre Holdings, would be renamed Crown Infrastructure Partners, and bring its investment skills and experience to attract private investment to roading and water infrastructure.

The Government would carry the initial risk, but Mr Joyce was confident private investors Accident Compensation Corporation, the Super Fund and iwi wanted to join in. — NZME