The Hutt News

Councils split over U-turn

- NICHOLAS BOYACK

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%.

 ?? KEVIN STENT/STUFF ?? High-density housing is springing up all over Hutt City.
KEVIN STENT/STUFF High-density housing is springing up all over Hutt City.
 ?? MONIQUE FORD/STUFF ?? Lower Hutt mayor Campbell Barry is worried about the future funding of local government. Councillor­s have agreed to a rate increase of 9.9%, which he says will be a big ask for those on a fixed income.
MONIQUE FORD/STUFF Lower Hutt mayor Campbell Barry is worried about the future funding of local government. Councillor­s have agreed to a rate increase of 9.9%, which he says will be a big ask for those on a fixed income.

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