The Ministry of Business, Innovation and Employment’s (MBIE) new Housing Affordability Measure will allow the market to be monitored at a more detailed level, Building and Construction Minister Dr Nick Smith says.
“This Housing Affordability Measure gives more detailed data than other measures offer and allows a better understanding of housing affordability trends. It has been developed independently by Statistics New Zealand and MBIE, with Ministers being informed but not deciding on the measure. The advantage of this new statistic over other measures of affordability is that it is more sophisticated, enabling the affordability for first home buyers and renters to be separated and the measure to be applied to a more specific area,” Dr Smith says.
“Being able to assess housing affordability at a local council level, and a ward level in Auckland, will help central and local government policy-makers identify and respond to affordability challenges that are specific to each housing market.
“Local authorities will immediately be able to use this measure to meet one of their requirements under the National Policy Statement on Urban Development Capacity. The National Policy Statement requires high and medium growth councils to begin monitoring housing affordability (and other market indicators) on a quarterly basis from 1 June 2017. This new measure will help ensure councils’ planning policies support improved affordability.”
MBIE released the measure today as an “experimental statistical series”, meaning it will continue to be refined to ensure it remains fit-for-purpose. The Ministry welcomes feedback on the new measure.
The Government’s KiwiSaver HomeStart scheme, launched two years ago, is continuing to grow, with an increasing proportion of buyers opting for new property, Building and Construction Minister Dr Nick Smith says in welcoming the latest Housing New Zealand Financial Products Quarterly Report.
“KiwiSaver HomeStart is the most generous government support for first home buyers in more than a generation, providing grants of up to $10,000 for an existing home and $20,000 for a new one. It is complemented by enabling first home buyers to access their KiwiSaver funds and a government guarantee for bank loans, called a Welcome Home loan. The support provided for all three programmes in year two (1 April 2016-31 March 2017) has grown strongly over year one (April 1 2015-31 March 2016).
“KiwiSaver HomeStart helped 11,943 first home buyers in year one with $55.6 million of grants. In year two it helped a further 15,038 first home buyers with $72.9m in grants. This growth in assistance is welcome as the most difficult hurdle for first home buyers is pulling together the funds for a deposit. The scheme is forecast to grow to around $100 million next year and is on target to help 90,000 first home buyers with $435 million in grants over five years, as announced in 2015.
“It is also welcome news that the value and proportion of the HomeStart grants being used for new home purchases is growing. In year one, $9.35m was used for new homes, or 17 per cent. In year two, $15.7m was used for new homes, or 22 per cent. This reflects the strong growth in new homes coming on to the market and the Government making access to the scheme easier for new home buyers.
“I also welcome the trebling in the use of KiwiSaver funds for purchasing a home over the past three years. We have seen the level of withdrawals grow from $201m in the year to March 2015 prior to HomeStart, to $457m in the year to March 2016, to $627m in the year to March 2017. These numbers show how KiwiSaver is becoming an increasingly important part of the solution for getting young people into home ownership. I strongly encourage young New Zealanders to join KiwiSaver as a smart medium-term strategy for home ownership.
“The Welcome Home Loan scheme enables people with a deposit of just 10 per cent to access a bank mortgage through a government guarantee. These loans are also exempt from the Reserve Bank’s LVR limits. This report shows growth in these loans from 1053 in year one to 1218 in year two, growth of 16 per cent.
“This report shows the Government’s KiwiSaver HomeStart initiative is successfully helping New Zealanders into home ownership, with 27,000 people receiving grants totalling $128m and $1084m being accessed from KiwiSaver accounts for home ownership. This positive report, alongside the strong growth in home building activity and stabilisation in house prices, shows the Government’s housing policies are working.”
Entries to the 27th annual Green Ribbon Awards are set to close next Wednesday and all unsung environment and conservation heroes are being encouraged to step forward.
“We’ve had some fantastic entries so far. It’s inspiring to hear so many exceptional stories of environment and conservation initiatives being undertaken across the country,” Environment Minister Dr Nick Smith says.
The Green Ribbon Awards are held annually to recognise outstanding contributions by individuals, communities and organisations to protect and manage the environment.
The categories cover biodiversity, resilience to climate change, waste minimisation, caring for fresh water, coastal and ocean protection, leadership, philanthropy and partnerships, and there is a Supreme Winner category.
“Last year our supreme winner was Te Whangai Trust. Every year they provide half a million eco-sourced native plants and more than 156,000 volunteer hours. They have made a significant difference in the Waikato region, restoring ecosystems, wildlife corridors and waterways’” Ms Barry says.
“We will also be awarding the prestigious Loder Cup for outstanding contributions to the protection of our unique flora and fauna. Previous winners reflect a who's who of New Zealand conservation and include the first recipients Duncan and Davies and Dr Gerry McSweeny.”
“These awards celebrate effort and excellence and inspire others. If you’re making a difference to New Zealand’s natural assets, plants and wildlife, I’d encourage you to put yourself forward and enter the Green Ribbons. We’d love to hear from you,” Ms Barry says.
All finalists will be invited to an awards night banquet at Parliament.
The Green Ribbon Awards close on Wednesday 10 May. To enter the awards, visit www.greenribbonawards.org.nz.
The Government is selling the Linwood temporary accommodation village to the Christchurch City Council, which will continue using them for people affected by the earthquakes, Building and Housing Minister Dr Nick Smith announced today.
“The Council will use the 42-unit Linwood village for social housing tenants displaced during earthquake-related repairs and redevelopment and other residents displaced as a result of the earthquakes,” Dr Smith says.
“The Otautahi Community Housing Trust will manage the tenancies at Linwood village on behalf of the Council. Existing tenants will be able to remain in the villages until their repairs are complete.”
The units can remain on Linwood Park until 2021 but may only be used by people displaced by the earthquake.
The reserves will be remediated by the Council when the village units are ultimately removed. Decisions on the future use of the units will be made by the Council and the Otautahi Community Housing Trust at that time.
The Government established the temporary accommodation villages on council reserves at Kaiapoi and Linwood in 2011 and Rawhiti in 2012 to provide local housing options for families while their homes were repaired. The Kaiapoi village was decommissioned in August 2016 and the 20 units sold by public tender to commercial and social housing purchasers.
“The Linwood village has provided a temporary home for 560 households, with an average tenure of 3-1/2 months. But demand for earthquake-related temporary accommodation has been falling from a peak in June 2014 as EQC and private insurer-led repairs and rebuilds progress and the housing market recovers,” Dr Smith says.
“The Government was in negotiations to sell the remainder of the houses at Rawhiti and Linwood to the Christchurch City Council when the Kaikōura earthquake struck last November 14.
“We consequently decided earlier this year to offer the 20 Rawhiti units for sale to farmers with homes significantly damaged by the Kaikōura earthquake. There has been strong interest in these units, agreements in place for over half and the relocations will begin this week.
“These new uses for the villages are ensuring they continue to contribute to earthquake regeneration while there is still an ongoing need.”
New Zealand’s strong building growth continues both nationally and in Auckland, with March 2017 figures showing strong increases for the month, quarter and year on the same periods in 2016, Building and Construction Minister Dr Nick Smith says.
“In Auckland the number of dwellings consented during March was 20 per cent up on the previous March, to 942 – the highest for March in 12 years. This isn’t just a one-off; the number of consents issued for the quarter was up 8 per cent to 2254, while for the year it was up 7 per cent to 10,199. This is the fifth straight year of strong growth in residential construction, making it the longest and strongest building boom in Auckland history.
“It was the same story nationally, with a 20 per cent increase in consents for March from the previous March, to 2779, a 9 per cent quarterly increase to 6949 and a 10 per cent yearly increase to 30,626. The level of residential investment nationwide is also at a record high of $12.7 billion, an increase of 15 per cent on last year.
“This ongoing strong growth shows the Government’s programme to increase housing supply is working, with the sector growing about as fast as it practically it can.
“Residential construction’s strong growth is also being matched by high levels of investment in commercial buildings and infrastructure, which has hit all time high of $6.8b, up 8 per cent on the previous year to March.
“This strong growth in residential, commercial and infrastructure investment, both in Auckland and nationwide, confirms that New Zealand is experiencing its strongest building boom ever and reinforces the strength of the New Zealand economy.”
The Our Fresh Water 2017 report released today confirms the direction of the Government’s reforms for improving the management of fresh water, Environment Minister Dr Nick Smith says.
“This is the first comprehensive and independent report on the state of New Zealand’s fresh water and arises from the Government’s Environmental Reporting Act that came into effect last year. The issues identified in respect of nutrients, E. coli, sediment and fresh water ecology are not new and are being addressed as part of the Government’s fresh water improvement programme. The value of the report is in providing a robust, independent baseline so future progress can be independently verified every three years.
“The report highlights that New Zealand’s fresh water challenges vary significantly across the country and that the problems have arisen due to agricultural and urban development over many decades. The overall picture is that pollution from nitrates is increasing, from phosphates is decreasing, from E. coli is stable and that water clarity had been deteriorating but has improved over the past decade.
“It confirms New Zealand’s most significant fresh water quality challenge is diffuse nitrate pollution. The problem is worst in urban environments but the negative effects impact on a greater number of rivers and lakes in rural, pastoral environments. The first caps on nitrates were set in 2011 in Taupo and now 18 catchments have limits, as the Government’s National Policy Statement on Fresh Water is implemented. This progress will need to continue if these long-term negative trends on nitrates are to be reversed.
“This report is also a strong endorsement of the Government’s direction in improving the swimmability of our rivers and lakes. It confirms the validity of the recently announced grading system, levels of risks of the swimmability categories and that the current level of swimmability of our rivers at 65-70 per cent. The Government’s plan to improve 1000km of river and lake margins per year to achieve 90 per cent by 2040 is ambitious but achievable, with initiatives like national regulations excluding stock from waterways.
“The Government’s programme of work includes tighter regulation of nutrients, new provisions for protecting water ecology and the development of good management practice for farmers and other water users, as well as a record $450 million investment in fresh water quality initiatives. Our programme is about openly reporting the problems and a practical plan of initiatives which will improve water management.
“This report gives improved information but not a complete picture of New Zealand’s water management. Our new national regulations on water metering that took full effect last 1 November will ensure the next report provides far more comprehensive information on water use. The other area where more data is required is in respect of sediments. Fresh water is one of New Zealand’s most valuable resources, and this three-yearly independent stocktake will become a critical reporting document for ensuring positive progress.”
The Government is activating a Temporary Accommodation Service to assist Edgecumbe residents hit by the recent floods, Lead Minister for Edgecumbe, Anne Tolley and Building and Construction Minister Dr Nick Smith announced today.
“This service is to help people displaced when the Rangitāiki River broke its banks and flooded the town of Edgecumbe," says Mrs Tolley.
"We are still assessing the damage to know how many homes will need to be replaced and how many repaired but it is clear assistance will be required for a significant number of families for temporary accommodation.”
“The Edgecumbe Temporary Accommodation Service (ETAS) has been activated by the Ministry of Business, Innovation and Employment to help people affected by the floods," says Dr Smith.
"The ETAS team will collect registrations from displaced people who require temporary accommodation, establish what accommodation options are suitable and available and connect them together. The service has proved very successful in the Christchurch and Kaikōura earthquakes, and the level of damage and displacement justifies us establishing this new service in Edgecumbe.
“I urge anyone who has a current or expected need following the Edgecumbe floods to register their details at www.temporaryaccommodation.mbie.govt.nz Alternatively, call 0800 779 997 to discuss your requirements.
“I would also urge tenants and landlords of rental properties to visit www.tenancy.govt.nz to familiarise themselves with their tenancy rights and obligations following an event like this."
The Temporary Accommodation Service continues to provide support to households in Kaikōura and the surrounding regions following the November 2016 Kaikōura earthquake. It received 128 registrations from households there. The same team also helped more than 6,500 households affected by the Canterbury earthquakes find temporary accommodation, over 1,100 of which were in Government established villages.
“This is the first step in providing assistance. We are working with Councils and other agencies on exploring options for emergency and temporary housing and the information obtained from this new service will help inform future decisions on the most appropriate support required," says Dr Smith.
A Government grant of $2.6 million is to be provided to the Hurunui and Kaikōura districts to repair waste facilities, recycle earthquake debris and manage hazardous waste, Environment Minister Dr Nick Smith said today in Waiau.
“An important part of the earthquake recovery is the careful management of the thousands of tonnes of additional waste, particularly hazardous materials. The demolition and rebuild work needs to be done at pace but we also need to manage the waste properly so we do not create environmental and health problems now and into the future,” Dr Smith says.
“This grant is to help the councils rebuild their waste facilities, recycle as much as possible of the huge increase in waste and to put in place effective measures to carefully manage hazardous waste like asbestos.”
The Kaikōura-Hurunui Earthquake Recovery Waste Project will receive $2.636m in a special grant from the Government’s Waste Minimisation Fund administered by the Ministry for the Environment. The special grant is being made outside of the normal annual funding round because of the urgency and advocacy of the local councils and MP Stuart Smith, who wrote to the Minister with concerns about the waste problem.
Funding of $1.606m will go to Environment Canterbury for hazardous substance management, particularly asbestos, $360,000 to Hurunui district for infrastructure repairs and case management, and $670,000 to Kaikōura district for asbestos management, infrastructure repairs and increased recycling support.
“This funding will support repair and expansion of the resource recovery parks at Amberley, Waiau, Hanmer and Kaikōura. We want to recover as much as possible of the reusable materials, such as bricks, tiles, timber and hardfill. There is also the opportunity to reuse building components like windows and doors from homes being demolished for ones that are being rebuilt so as to maintain their character and heritage,” Dr Smith says.
“This project and grant is also about ensuring effective management of hazardous waste like fluorescent lights, old chemicals and asbestos. There is a particular focus on asbestos because an estimated 237 buildings are likely to contain the hazardous substance. This funding will help survey buildings, provide advice to owners on safe demolition and provide two permanent and two mobile hazardous waste facilities.
“This waste minimisation project is an important additional component of the Government’s wide ranging support to the Kaikōura and Hurunui community in response to November’s devastating earthquake. It is about ensuring we care for the environment as well as the people, housing and infrastructure.”
I move that the Resource Legislation Amendment Bill be now read a third time.
This Bill is a critical part of the Government's programme to increase the supply and affordability of housing, to grow the economy with more jobs and higher incomes, and to also improve our environmental management.
The Bill is the second phase of our reform programme that began with a major Bill in our first term but for which we were unable to progress in our second term because we could not secure a Parliamentary majority. It is a significant milestone that today we will pass this 250 page Bill involving 40 substantial changes in over 700 specific provisions after multiple rounds of technical advisory groups, public consultation and negotiations with other parliamentary parties in this parliament.
Parties opposing this Bill are doing New Zealand a disservice. In the committee stages they quibbled at the edges and tried to manufacture myths but they have been unable to mount any credible argument against the substantive reforms in this Bill.
This Bill introduces National Planning Standards so as to simplify the 80,000 pages of resource management rules and policies, more than 1000 per council, that make the RMA such a nightmare for New Zealanders to navigate. A country of 4.7 million people cannot justify this level of bureaucracy. It makes common sense that we have standard zonings, standard ways of measuring the height of buildings, standard definitions and a standard format for our plans.
The Bill radically changes the way plans are written by introducing a new streamlined and collaborative process. This matters because it takes on average seven years currently for a council to complete a new plan and that is just too slow.
We know this new streamlined process works because our Government has used it through special legislation with our two biggest cities of Auckland and Christchurch. The overwhelming message is that the process was robust, the plans better, and the result achieved in a fraction of the time.
I am equally appalled that members opposite are opposing the addition of natural hazards to the matters of national importance. Earthquakes, floods, cyclones, tsunamis and landslides are not something to play politics over. The recent quakes in Christchurch and Kaikoura, the floods in Auckland and Northland earlier this year and the flooding of Edgecombe today are reminders that New Zealand has more than our share of significant natural risks. This change was recommended by the Royal Commission of Inquiry into the Christchurch Earthquakes because planners had been so diverted by the more politically correct requirements of the current Act that those hazards were overlooked. Every responsible member of this House genuinely concerned about the wellbeing of our country should be backing the inclusion of this important requirement into the most central part of the RMA – its purpose and principles.
One of the biggest issues facing our country right now is the supply and affordability of housing. I am gobsmacked at members opposite who demand this be addressed but then come down to this House and oppose the very measures that will make a difference.
Report after independent report, be it the Productivity Commission, the Treasury, the OECD, The New Zealand Institute, or from the Property Council, make plain that the supply of land is at the core of the problem. The numbers speak for themselves. The cost of building an average 170 square metre home in Auckland has increased from $120,000 25 years ago to $360,000 today, a threefold increase. But the cost of the average section over the same period has gone from $53,000 to $530,000, a tenfold increase. You cannot pretend to be serious about improving the affordability of housing unless you are prepared to address the price of new sections and reform the very Act, the RMA, that governs their creation.
This Bill introduces a new specific requirement on councils to free up land supply. It removes appeals on resource consent for residential developments. It reverses the presumption in favour of subdivision. It removes the double charging system of development and financial contributions to a single tighter regime. These will all help bring the cost of sections down.
The Bill is also a help to getting the road, rail, water, telecommunications and electricity infrastructure built, to support our strongly growing economy. It will speed up the process for getting designations and consents. The changes to the Public Works Act give more generous compensation to affected landowners but also include a financial incentive payment for early settlement, that will help get infrastructure built more quickly.
Another important issue this Bill progresses is that of our water quality in enabling national regulations requiring stock to be fenced out of waterways. Only three of our 16 regional councils have any rules on this. National rules are the sensible way forward backed up by an instant fine regime. Members opposite cannot credibly cry foul over the state of our waterways and then vote against these practical measures.
There are also environmental gains in the new provisions that will require offshore platforms to have decommissioning plans. There has been experience overseas where petroleum companies, having exhausted the oil and gas, then leave the huge cost of decommissioning to taxpayers and this bill addresses this problem.
This Bill also tackles the problems of those thousands of unnecessary consents that cause so much frustration and cost. I have an example right now in Nelson of the Rutherford St Kindergarten moving just 100m up the road to new premises, and the parents and committee having to fundraise for over $50,000 of resource consent and related costs. I could bore this house for hours with examples of minor projects like decks and carports costing more to consent than they cost to build. This addresses these problems with provisions that give councils the power to waive the need for consents, the new ten day fast-track process for minor issues and the ability to resolve boundary infringement rules, issues with only the immediate neighbours consent.
The iwi participation arrangements in this Bill are about making existing provisions in the RMA in Sections 6,7 and 8 more practical and workable. It will enable councils to work out practical ways for iwi to participate in the process and help the system work better by getting early involvement. The law is plain that decisions on plans and consents remains with councils and that councils cannot be forced into an agreement. There are many councils that already have such arrangements and they are proving to work well for both iwi and resource consent applicants as a consequence of greater clarity about who to consult and what issues are of importance to iwi.
There are dozens of practical provisions in this Bill that will reduce bureaucracy and red tape. It tackles the problem of the RMA being used by councils to duplicate issues that are already regulated in other statutes such as building insulation standards, telecommunication regulations, fishing laws, workplace safety requirements or hazardous substance rules. We need a regulatory system that leaves no gaps but which also avoids double ups. The changes to the Reserves Act and Conservation Act align notification periods and enable joint hearings so we don’t have two separate processes debating the same project and issues.
Mr Speaker, I need to conclude by acknowledging the mountain of work that has gone into this Bill over many years. I particularly want to acknowledge Hon Amy Adams who in the last term of Parliament put huge effort into many of its provisions, to Scott Simpson who worked tirelessly in chairing the Select Committee, Hon Te Ururoa Flavell and Marama Fox and their team in the Maori Party who have worked so hard to find compromises and ways forward, to Tim Bennetts and George Riddell in my Beehive Office, and the capable Ministry and PCO teams.
The passage of this Resource Legislation Bill is a significant milestone for this Government. It delivers on reforms planned and promised over many years.
It will make houses easier to build and more affordable.
It will reduce unnecessary red tape and bureaucracy for kiwi homeowners, farms and businesses.
It will help our country build the infrastructure to support a growing economy.
This Bill is a litmus test for MP’s as to whether their intent is in playing politics or doing what is right for our country.
I urge this Parliament to pass this complex but necessary reform.
The successful passage today of the 250 page Resource Legislation Amendment Bill through its third reading is a major milestone for the Government’s reform programme, Environment Minister Dr Nick Smith says.
“The reforms in this Bill will help increase the supply and affordability of housing, grow the economy with more jobs and higher incomes, support infrastructure investment and improve environmental management,” Dr Smith says.
“The 700 clause bill makes 40 significant changes to the Resource Management Act, Public Works Act, Conservation Act, Reserves Act and the Exclusive Economic Zone (Environmental Effects) Act.
Significant provisions in the Bill include:
National planning standards to reduce complexity and cost Streamlined planning process to improve responsiveness Discretion for councils to exempt an activity from consents Strengthening of requirements to manage natural hazard risks New 10-day consent category for minor activities New requirements for council to free up land for housing New provisions to enable stock exclusion from waterways New provisions requiring decommissioning plans for offshore platforms More generous compensation for land required for public works Better alignment with other Acts like Reserves, Conservation and EEZ Collaborative planning process to encourage community-led solutions Improved Maori participation arrangements
“The RMA became law 25 years ago but since then it has become excessively complex and expensive. We currently have 80,000 pages of RMA plans and rules, or an average of 1000 per council. The new national planning standards will hugely reduce the bureaucracy and the new streamlined planning process will speed up the time it takes to write replacement plans.
“These reforms will reduce the number of consents required by thousands. Councils will have a new power to waive the need for consents for minor issues, and a new 10-day first-tracked consent will be available. This boils down to things like homeowners wanting to build a deck having to consult only with an affected neighbour, and no consent being required for issues that involve minor or temporary rule breaches.
“This Bill is pivotal to resolving New Zealand’s long-term housing supply and affordability problems. The cost of a section in Auckland has increased tenfold over the past 25 years, from $53,000 to $530,000, as compared to the threefold increase in the cost of building, from $120,000 to $360,000. The key solution is making sections easier to create and more affordable. This Bill introduces a specific requirement on councils to free up land, removes appeals on residential developments, reverses the presumption in favour of subdivisions and removes the double charging system of financial and development contributions.
“The introduction of natural hazards into the core principles of planning and consenting is critical to New Zealand lifting its management of risks from earthquakes and floods. This change was recommended by the Royal Commission of Inquiry into the Christchurch Earthquakes and I am appalled that on a day of floods affecting communities like Edgecumbe, opposition parties are opposing this sensible extension of councils’ planning responsibilities.
“There are important environmental gains in this Bill. We need the national regulation-making powers to get stock out of our waterways, while provisions requiring offshore platforms to have decommissioning plans will ensure taxpayers are not left with environmental liability.
“The Iwi Participation Arrangements provisions will provide a better framework for councils to meet their existing consultation obligations. The provisions do not change councils’ decision-making rights on plans or consents. They simply provide a mechanism for councils to meet their obligations under sections six, seven and eight. Councils that have these arrangements are finding it is better to have iwi involved early in the process as it avoids delays and costs further down the track.
“This reform delivers on National’s Bluegreen agenda of supporting economic growth, more houses, better infrastructure and less bureaucracy while ensuring New Zealand’s environment is well managed and protected.”