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Phil Heatley

4 February, 2009

Affordable Housing: Enabling Territorial Authorities Act 2008 to be reviewed

Housing Minister, Phil Heatley, said today that along with proposed reforms of the Resource Management Act, the Local Government Act and the Building Act, which will reduce impediments and excessive costs imposed on councils and the building industry, the Government also intends to take a close look at the Affordable Housing: Enabling Territorial Authorities Act 2008.

"Given the link between all these bits of legislation, I am considering my options regarding the Affordable Housing: Enabling Territorial Authorities Act and will be putting advice in front of Cabinet in the near future," said Mr Heatley.


"While National is supportive of initiatives that will clearly result in housing being more affordable, particularly for those on low to moderate incomes, local authorities told the previous government that they were already struggling with their current statutory responsibilities and did not have the capacity or resources to undertake things like housing needs assessments."


"Such a process imposed yet another layer of expectation and responsibility on them, another compliance cost, and another opportunity for delay in processing positive housing development opportunities," he said.


"This legislation never addressed the real cost drivers of housing supply and I am of the view that it will, in fact, provide disincentives for the provision of affordable housing."


"Better meeting residential land needs, beating back over-regulation and compliance costs faced by builders, improving infrastructure provision, and streamlining the planning and consenting process are all more appropriate responses than a piece of ‘enabling' legislation that does nothing to reduce complexity and cost for local authorities and the construction sector to assist with making housing more affordable."

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