New policy to address “failing” cities

Urban Development Minister Phil Twyford and Environment Minister David Parker today launched the Government’s new proposed National Policy Statement on Urban Development.

Twyford says restrictive planning is stopping New Zealand cities from growing by driving up the price of land and housing.

Not only does this mean that our cities are failing, but it is one of the big drivers of the housing crisis, he says.

“We need a new approach to planning that allows our cities to grow up, especially in city centres and around transport connections.

“When overly restrictive planning creates an artificial scarcity of land, or floor space in the case of density limits, you simply drive up the price of housing and deny people housing options.”

The proposed changes would direct councils – particularly in the high growth centres of Auckland, Hamilton, Tauranga, Wellington, Christchurch and Queenstown – to free up their planning rules while focusing on high-quality streets, neighbourhoods and communities.

Twyford says it is possible to create high and medium density communities with good urban design and open spaces that will reassure the most sceptical NIMBY.

“We also know that with good planning and transport infrastructure, growth on the fringes of the city can avoid the pitfalls of sprawl. But we also have to allow cities to expand in a way that protects our special heritage areas, the natural environment and highly productive land.”

The Government wants councils to take a long-term strategic approach to the growth of their cities,Twyford says. “This means joining up transport, housing and infrastructure in a 30-year plan that involves mana whenua and the wider community in a much more hands-on approach to planning.”

Auckland Mayor Phil Goff is pleased to see the Government is tackling urban development to meet demand. But he says high growth cities cannot be expected to shoulder the burden of growth by themselves.

“At the moment, about 93% of public revenue goes to Government, yet cities shoulder most of the cost for accommodating growing populations. We need some degree of revenue sharing if Government wants Auckland to take more of a role in urban development.”

Auckland Council is investing more than ever into the city’s infrastructure with over $26 billion planned, Goff says. “But there is a limit on what we can do. It either needs to be funded by central government or we need the tools to find the funding.”

In its effort to improve urban development and the rules around planning, the Government is also embarking on a review of the Resource Management Act and is in the midst of creating a new urban development authority.

Today’s new urban development policy will sit alongside the policy on Highly Productive Land, which was announced last week. Together they aim to ensure the right balance between land use for food production and for housing development is achieved.

If Ministerial and Cabinet approval is given to the urban development policy, it is likely to take effect during the first half of 2020. Consultation ends on October 10.

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