PCNZ Submission on Auckland Council draft Development Contribution Policy

It is absolutely critical to have a robust DC policy that would allow the industry to make informed long-term investment decisions and ensure fair distribution of fees amongst all ratepayers. However, the proposed changes do raise some serious concerns in the sector.

Given the lack of evidence provided by Auckland Council, the Property Council has commissioned independent research to test the data that has informed development of the Council’s DC policy.

We have made a list of recommendations to influence better and fairer outcomes for all:

Update of 10-year Budget capital projects
  • Consider alternative funding and financing models as well as partnering with others (Government, other councils and the private sector) for joint funding opportunities;
  • Consider findings from the assessment undertaken by Market Economics when finalising the DC policy;
  • Do not include community infrastructure into DC fees and consider alternative tools to cover the costs (e.g. rates, targeted rates, Special Purpose Vehicles);
Inclusion of capital projects beyond 10 years
  • Keep the status quo (i.e. 10-year approach);
  • Review the proposed increases for Drury (see the below research report from Market Economics);
Payment timing
  • Keep the status quo (as per the current DC policy);
Changes to funding areas
  • Reconsider approach to identifying funding areas to avoid cross-subsidisation;
Additional comments
  • Take into consideration other factors when finalising the DC policy:
  • Significant increases in building costs and the latest lockdown in Auckland;
  • Broader impact from key reforms on the property industry, such as housing affordability.
Read the full submission
Read the supporting research


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