“To get more houses there needs to be more infrastructure, the problem is that even when the council hikes your rates they can’t afford infrastructure. ACT has the solution in the form of my GST Sharing Member’s Bill,” says ACT’s Housing spokesperson Brooke van Velden.

“The bill would incentivise and resource councils to provide infrastructure for new homes by sharing half of the GST with them.

“The only time you get prompt service from a council is when they’re issuing a parking ticket. They’ll come to you, anywhere, anytime, because there’s money in it. Imagine how many consents they’d issue if there was money in it for them?

“Currently, local councils face poor incentives to build. Every new development involves costs to existing ratepayers to provide new roads, water, and sewerage connections. These costs act as a disincentive for councils to approve new houses and subdivisions.

“The GST-sharing scheme is estimated to deliver $1 billion every year to support local development enabling infrastructure, but councils that consent more, get more.

“Instead of forcing councils to come begging for special funds from the Government, it would provide an enduring and predictable solution for infrastructure funding.

“ACT believes in better, longer-lasting solutions. Kiwis want better when it comes to housing to ensure we can live our best and most fulfilling lives. We hear ya.”

More from

Brooke van Velden