A.C.T.’s grandiose housing policy


The other day A.C.T. released its housing policy.

I was initially quite dubious about what the policy would hold in terms of responsible housing for New Zealanders. However I decided to make a stern challenge of this – not to A.C.T., but to myself – to read through the policy and have an honest go at critiquing it.

The major tenets of the policy appear to be:

  1. Removing what A.C.T. considers to be red tape around building houses – it interprets this to be building codes, land use planning and labour laws
  2. It would build 600,000 houses
  3. It would require compulsory insurance for new buildings

The A.C.T. Party has never been a fan of the Resource Management Act 1991, and has variously said it will either repeal or completely rewrite the Act. It blames the land use planning rules provided for in the Act as having a choking effect on housing. The actual purpose of land use planning is because not all land zones will be appropriate for housing, and the local council in identifying and providing these different uses needs to have tools that enable – e.g. an asbestos dump covered over is not appropriate to have housing built on top and the base of it would need to be secure to stop contaminants leaking into the ground water.

A.C.T. proposes a policy that I am not aware of other parties having come up with, and that is the use of G.S.T. as a means of funding infrastructure such as roading, sewerage and electricity connections. All of this is infrastructure that councils are obligated to build when they let new construction go ahead. Although I am not sure how well the G.S.T. will work in this regard, I acknowledge A.C.T. has at least thought about how it is going to fund this.

600,000 houses will be built. That is a huge number of new houses for such a small country – and would far exceed what is probably needed. Even 300,000 would solve housing issues, assuming they were affordably priced. Would there actually even be market demand for such a huge number – which I assume would largely consist of dwellings with 1-4 bedrooms, bathroom and toilet/s, kitchen, laundry and maybe a double garage. We know nothing about the land they would sit on

A.C.T. says it would require compulsory insurance for new buildings. Here is something I agree with, though I thought that this might have been better suited to a wider construction policy than just for houses.

I still have credible concerns about the policy though. I am not sure where they will find enough tradespeople to do the work. New Zealand simply does not have a big enough population to provide these workers. As we have seen with the current construction environment in N.Z. cities, there is a risk of exploitation by industry cowboys who just want a fast dollar.

To process the necessary legalese (what can I call the planning phase when A.C.T. is taking this away from councils?), a substantial – and I find this quite ironic – bureaucratic machine will still be needed. A.C.T. cannot just walk away from the City/District/Regional Plans set down under the Resource Management Act, or Long Term Plans which area Local Government Act 2002 requirement would either have to be allowed to run out or substantially modified.

So, lets see how all of this turns out, but I think A.C.T. will find New Zealanders consider this a rather grandiose policy.

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