Auckland satellite city could address supply issues

The report is an illustration of just how imbedded the many challenges are which have seen New Zealand’s housing affordability plummet, according to the New Zealand Council for Infrastructure Development.

Council CEO Stephen Selwood said the report underlines the need for a major revision of New Zealand’s dysfunctional planning and governance framework.

The three governing acts – the Resource Management Act, the Local Government Act and the Land Transport Management Act – should be reviewed with the aim of harmonising planning and decision making across both central and local government, he said.

“Getting the incentives and objectives across government right will help councils and the Crown align their objectives, ensuring that sufficient land is available and ready for development.”

This would take time, which means the Commission’s suggestion of an urban development agency could be crucial in finding a nearer term response to the urgent housing need in Auckland.

Selwood suggested that Auckland’s housing supply issue could also be addressed through the development of a compact greenfield satellite city.

Such a city would be aligned to the rail network, funded off land value improvement and financed with private capital, he said.

He pointed to Springfield, which is just outside Brisbane and has been master planned to accommodate population density, as a successful example.

“An urban development agency, working in partnership with major private developers, could help achieve this and deliver the type of outcomes both the government and Auckland Council, as well as residents, demand.”

However, Property Institute chief executive Ashley Church disagrees.

In his view, the creation of an urban development authority could make matters worse for Auckland as it would “step on the feet” of the Auckland Council.

“Isn’t this why the Super City was set up? Didn’t it incorporate the powers of a range of other Authorities so that it could coordinate planning and infrastructure development across the Auckland region?”

Church said that if the creation of a single Authority was the answer to the housing problem, Auckland would now be well on the way to solving its housing issues.

He warned there are already too many organisations, with contradictory interests, active in Auckland.

“We already have the Reserve Bank, the Government and the Council – all working in contradiction to each other and skewing the housing market in Auckland.

“The introduction of yet another agency would just make that situation even worse.”

Both the government and the Auckland Council have welcomed the Productivity Commission’s report and recommendations.

Finance Minister Bill English, who has ministerial responsibility for the Commission, said the report will help inform the next steps in the government’s housing work programme.

Auckland Mayor Len Brown said he was pleased the report identified the need for agencies to work together to address Auckland’s housing supply issues, as well as the need for a serious look at intensification of housing.

Read more about the Productivity Commission’s “Using Land for Housing” draft report here.