MIXED REACTION
National is pushing for councils to be given $50,000 towards infrastructure for every new house built – but throughout Wellington response to the idea is mixed, with one city councillor saying the policy is ‘‘removed from reality’’.
The proposal would replace the Government’s $3.8 billion housing infrastructure fund, which the Government has said will help deliver 80,000 to 130,000 new houses – or between $29,000 and $48,000 per house.
But the policy is technically uncapped, meaning it could cost more than $3.8b if put into place – although that would mean tens of thousands of new houses.
Wellington city councillor Fleur Fitzsimons, who holds the city’s housing portfolio, described the policy as ‘‘removed from reality’’, because it focused on freeing up new land for development.
‘‘We simply do not have suitable new land for housing,’’ she said. ‘‘We need to build upwards not outwards to ensure affordable housing.’’
Wellington Mayor Andy Foster agreed Wellington couldn’t afford to spread out. ‘‘We need to go up: intensify. In the long term that will be much better for Wellington, in terms of both transport and sustainability.’’
But Wellington property developer Ian Cassels, who is involved in several high-profile developments in the city including Shelly Bay, did not think the policy would result in developers seeking new land. Instead, better infrastructure might attract commuters to live in the city.
‘‘The cheapest way to supply new housing is to supply infrastructure. It’s very expensive to accommodate people in sprawling suburbs.
‘‘It’s cheaper – and better – to accommodate people in the city than continually colonise green pasture.’’
Infometrics senior economist Brad Olsen said the policy would also be good for intensification.
‘‘If you can build at a denser scale and have more homes consented per area, you can lower your infrastructure cost,’’ he said. ‘‘You might have to beef up your existing infrastructure, but you don’t have to lay lots of new pipes in a brand-new area.’’
Upper Hutt Mayor Wayne Guppy remained sceptical about the policy until more detail was revealed.
‘‘It’s all right to stand on the hilltops and say, ‘we’re going to give everyone money’. It’s about how and what that entails – what might look attractive might not be attractive in the end.’’
Porirua Mayor Anita Baker said National’s policy would mean ‘‘real dollars on the table’’.
‘‘But we need to look beyond just development costs. The Government needs to explore using other policy levers, including actually building homes in areas of need with the use of leasehold land.’’
Upper Hutt developer Malcolm Gillies, who is involved in big developments throughout the Wellington region, said the proposed policy did not go far enough.
Interest-free loans that allowed councils to get ‘‘into the teeth of the infrastructure side of things’’ would be better, he said.