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Home / New Zealand

Levies will 'drive people out of CBD'

Anne Gibson
By Anne Gibson
Property Editor·
6 Mar, 2007 04:00 PM2 mins to read

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Connal Townsend

Connal Townsend

KEY POINTS:

The Property Council is opposing steep new apartment levies proposed by the Auckland City Council, saying the fees will drive people out of the central city.

Property Council chief executive Connal Townsend accused the council of "behaving like a kid in a candy store" over the proposed new
levies.

The levies would affect apartment owners, investors and young workers hoping to live in the CBD and push up the cost of new dwellings, he said.

The council says it wants to push up charges for providing infrastructure and open space.

Development opponents have criticised developers for opposing the raise, saying it is time they contributed their share. Average levies are expected to rise from $6000 to about $25,000.

But Townsend said he opposed the new charges on behalf of his members.

"Young people who might think they will be better off with the introduction of KiwiSaver and interest-free student loans are about to face an increase in the council-endorsed first home-buyer levy, to the tune of tens of thousands of dollars," Townsend said.

Last year, the North Shore City Council increased levies in Albany by over 400 per cent, Townsend said. Manukau City had also raised its levy.

"The inflationary cost of local government has become a significant point of debate for both Government and ratepayers alike. But it is with development contributions - the local authorities' first home-buyer levy cash-cow - that the real impact of inflation is most keenly felt.

"Sadly, the ultimate victims of the explosive price-gouge will be the young workers who are being priced out of our city and possibly out of New Zealand," Townsend said.

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