Councils split over U-turn
The National Party’s U-turn on greenfield development has angered Hutt City Council, which says what little suitable land it has would be extremely expensive to develop.
If the National Party wins the October election, it plans to give councils the ability to opt out of the medium density residential zone law which limits urban sprawl by allowing three-storey buildings on all residential land in major cities. Introduced in December 2021, it was backed by both major parties, with National’s Nicola Willis strongly supporting intensification.
Upper Hutt mayor Wayne Guppy supports National’s change of heart, saying it would result in his council regaining control over housing and give communities a greater say in where growth occurs.
However, Hutt City deputy mayor Tui Lewis is unhappy with the U-turn and said the council had implemented changes in line with the density law in good faith, believing that with both major parties in support, the policy was set in concrete. ‘‘It is very disappointing.
‘‘Urban sprawl is the exact opposite of what we need to do, especially with climate change.’’
She accused National of making policy ‘‘on the hoof’’ and said the change was essentially going back to the rules that created the current housing crisis.
What little suitable greenfield, or undeveloped, land there was in the city lacked infrastructure and would be extremely expensive to develop, she said.
The National Party’s housing spokesperson, Lower Hutt-based MP Chris Bishop, noted that when the density law was announced, Hutt City put in a submission opposing the policy.
He said National’s policy
‘‘It is very disappointing. Urban sprawl is the exact opposite of what we need to do, especially with climate change.’’ Tui Lewis Hutt City deputy mayor
would give councils greater flexibility to make local decisions, which many councils had asked for. Limiting urban sprawl had the unintended consequence of forcing the price of urban land up and that was a big contributor to the current housing crisis.
Hutt City mayor Campbell Barry believes the funding model for local government is “broken” and will only get worse when councils nationwide have to deal with issues around climate change.
He made his comments on Wednesday, against a backdrop of the council increasing rates, for the average residential ratepayer, by 9.9%.
For ratepayers on a fixed income, the increase was not good news, he said.
Barry told councillors that the “business as usual” option was becoming increasingly difficult to achieve for the council.
Roughly half of the Hutt’s increase would cover Three Waters and he said the council had no option but to invest in infrastructure.
Councillor and former council chief executive Tony Stallinger said the challenges facing the council were unparalleled in his experience. He said he did not agree with the increase and would have liked to have seen more done to reduce council expenditure.
Although it is still unclear where funding to complete the $79m Eastbourne 4.4km shared path Tupua Horo Nuku, would come from, it stays in the plan.
Chief financial officer Jenny Livschitz said the council was operating in a “really challenging economic climate” that was having a big impact on council budgets.
Rates affordability had been a priority for officers but it had resulted in a bigger rate increase than initially planned.
She warned that debt targets were under pressure and achieving a balanced budget had been deferred from 2028/29 until 2030/31. Debt would now reach $716m in 2028, instead of $620m.
There was also a “risk” that international credit rating agency, Standard and Poor’s ,would reduce the council’s credit rating, she said. On the future of the Eastbourne shared path, she noted that the council had only received 124 submissions on its plan and it only had 44% support.
The pathway, which will also act as a seawall, was originally budgeted at $30m but the cost had increased to $79m.
Although the council had increased its contribution to $25m, it was still waiting to hear if central government would fund the shortfall. The latest correspondence on Tupua Horo Nuku was “positive”, Livschitz said.
Barry said he hoped to make an announcement on its future soon.
‘‘Co-funding with Waka Kotahi and Crown Infrastructure Partners for Tupua Horo Nuku is looking positive, but ongoing. We expect to have decisions by the end of this month.’’
For the average residential ratepayer, the 9.9% increase equates to $5.02 a week.
Rates for central city businesses will increase, on average, by 18.7% and for suburban businesses by 14.5%. For rural ratepayers it is 15.5%.