Too much planning

Too much planning

Too much planning

Urban planning has become too wide in its scope,increasing housing costs and reducing prosperity.

This is the view of BusinessNZ in its submission on theProductivity Commission’s draft report BetterUrban Planning.

The draft report recommends scaling back planningrules and local government regulation, and improving infrastructure funding approachesto achieve more vibrant, prosperous and attractive local communities.

BusinessNZ’s submission agrees with many of thereport’s recommendations.

BusinessNZ Chief Executive Kirk Hope says individualsand companies should have more leeway to build and develop where they wish, aslong as they bear any associated environmental and economic costs. 

“Regulating should be used more as a last resort,where there is a clear public interest in doing so, and more considerationshould be given to compensation for loss of property rights caused byregulation,” Mr Hope said.

He said funding of infrastructure needed a fresh look.

“Councils should receive better guidance on availablefunding tools to achieve better infrastructure. Rather than imposing new taxes it would be preferable for localgovernment to explore working with the private sector in various ways to jointlybuild and manage affordable infrastructure.”

Areas where BusinessNZ had concerns in the draftreport included the suggestion of reducing appeal rights, and also thesuggestion of a Government Policy Statement on environmental sustainability,given the difficulty of accurately defining what this is and the reduction incertainty this could pose for business and household investment decisions.

However the overall approach by the ProductivityCommission was sound and valuable, Mr Hope said, and held much potential forimproved local planning in New Zealand.

With submissions now closed, the ProductivityCommission will present its final report on urban planning in November.

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12 Oct, 2016

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