Watercare connection fee up 23.5%

Water main construction works.

Minister says charge increase goes against effort to make houses more affordable

The water connection fee in urban Auckland has risen by 23.5 per cent to $12,075 at a time when Auckland Council and the Government are trying to reduce housing costs.

The council's water agency, Watercare Services, is making no apologies for the increase and signalling further big increases in the "infrastructure growth charge".

A Watercare spokesman said the charge went towards the growth component of a $5 billion capital programme over the next decade funded from existing charges, debt and the infrastructure growth charge.

The $12,075 infrastructure growth charge represented about 30 per cent of the growth component of the capital programme and would continue to rise until it reached 80 per cent, the spokesman said.

"The infrastructure growth charge is not simply a connection charge. It is a means to align the costs of future capital spending with the benefits."

The charge will affect thousands of new homes rising quickly under the council and Government's housing accord that aims for 39,000 new houses, many of them affordable properties, within three years.

Watercare has increased the infrastructure growth charges by 2.4 per in rural Auckland, saying they already reflected the growth component of the capital programme. From July, these vary from $4888 for water only in Paerata to $27,830 for wastewater only in Kawakawa Bay.

Housing Minister Nick Smith called the new water connection fee a significant increase and contrary to the broader objective of trying to achieve more affordable houses in Auckland.

Developer Mark Todd said development charges, like those by Watercare, were one reason there was no affordable housing in Auckland.

Rising costs

• $9775
previous connection charge

• $12,075
new charge*

&bulli; 23.5%
increase

* For urban connections. Rural charges have increased by 2.4%, depending on location