Councils Holding the Country to Ransom

[speights boy]

Productivity Commission to launch inquiry into how councils regulate land supply for housing

Local Government New Zealand President Lawrence Yule also welcomed the inquiry.

"The overall legislative and regulatory framework at both a central and local government level is cumbersome and does not enable agile planning, a factor highlighted in previous enquiries,” said Yule.

“One aspect of particular interest to local authorities is the release of land to the market for development.
Currently, local authorities cannot control when land is released.

We need to look at the incentives associated with this," he said.

(my bolding)
www.interest.co.nz/property/71885/productivity-commission-launch-inquiry-how-councils-regulate-land-supply-housing#comments

[Davo36]

"Councils cannot control when land is released" ... what utter utter BS.

Sounds like they're ducking for cover already. They know they've f**ked up big time and like a child who knows he's/she's been caught out they're looking for a way to shift the blame.

Just wait for the "It wasn't me!" or "It was already like that!" type arguments.

[speights boy]

"Councils cannot control when land is released" ... what utter utter BS.

How do they control when a landbanker releases the land to the market for development ?
What if the landbanker wants to hold on to it for another 10 years ?

[Davo36]

OK, so they control whether land is zoned residential or not.

They hardly zone any residential, so there are in fact very very few 'landbankers' out there.

The councils are very reluctant to expand the MUL's due to their smart growth ideas.

Just think about it, if things were the other way, and you could build just about anywhere, would we have high section prices?

[elguapo]

How do they control when a landbanker releases the land to the market for development ?
What if the landbanker wants to hold on to it for another 10 years ?

The only reason landbanking works is because the supply is limited to begin with. If you could build freely, landbanking is a pointless exercise.

It's no different to De Bree's control of the transparent carbon market. Control of the supply makes a very plentiful resource scarce.

[motivated]

Davo and Elguapo--- Spot on.--And the land in line for future rezone is 'surprise surprise' already owned by the same developers

[eri]

once they re-zone farmland

to residential

they can increase the rates

which inevitably forces the change of use

[Perry]

Local authorities are spending more than they earn . . .
16/09/2014

. . . . but the shortfall is getting smaller as council incomes rise.
Councils are taking in more from dividends and interest income, but
rates income was down slightly in the June quarter. Councils spent
$50.6 million more than they took in during the June quarter,
Statistics New Zealand says. The shortfall was almost $152m in the
March quarter. "Councils' income rose this quarter. However,
expenditure remained higher than income," Statistics New Zealand local
government statistics manager Gary Dunnet said.

[flyernzl]

Years ago there was a chap who owned a farmlet on the Hobsonville Road.
Where the road ran past his property there was a bend in the road.

The local Council approached him and said "That bend is a hazard, we'd like to remove it. Will you sell us a small part of your land so that we can do that?"

The owner was public spirited, and said "Sure. In fact I won't even charge for the land, I'll donate it".

The Council was very grateful.
The owner said "I'll see my Solicitor next week, get the paperwork drawn up".

His Solicitor said "Hmmm. There is one snag you know.
Your current land area is just over 10 acres, which means that you qualify for a substantial rates rebate on the basis that your land is an economic farming unit.
If you give the Council this bit, you will have less than 10 acres left.
This means that your land automatically loses that farming unit status.
So in return for you gift, the Council will double your rates bill".

The bend in the road is still there today.

[mrsaneperson]

Auckland council have taken on 500 more staff over the last year to the month of June!

[Wayne]

Auckland council have taken on 500 more staff over the last year to the month of June!

The same article did explain that the staffing levels is still less than the combined total of the individual councils and less than the projected amalgamated level.

[eri]

auckland

sydney's little sister

same parents

same problems

same solutions

doesn't really matter who the boyfriend is

http://www.nzherald.co.nz/property/n...ectid=11326627

despite efforts to release land for housing and the construction of new apartment blocks in the nation's biggest city, it would take a long time to correct the undersupply in the market.

"It will take probably four or five years to address the undersupply in Sydney," he told a property forum on Wednesday.

"The only way you can do it is through the release of land and through densification, and that's certainly the approach governments are taking, but it takes time."

[flyernzl]

and they already have a CGT.

[Davo36]

and they already have a CGT.

Left response:
(Holding hands over ears, with eyes shut) NO! CGT stops price increases! We MUST have one! It will solve all our problems!!!

[flyernzl]

As was promised with fencing of pools, microchipping of dogs, the no-smacking law and banning the use of cellphones in cars.