21 Jul 2022

Infrastructure funding announced alongside review of building consents

12:03 pm on 21 July 2022

The government has named seven towns and cities where $179 million will be spent to speed up infrastructure development to support 8000 new homes over the next 20 years.

Labour MP Megan Woods

Housing Minister Megan Woods. Photo: RNZ / Angus Dreaver

A review into the building consents system is also being launched, with public feedback being sought until 4 September.

Housing Minister Megan Woods, at the Ōtaki Maori Racing Club this morning, announced the first major tranche of spending from the $1 billion contestable Infrastructure Acceleration Fund.

It would go to projects in Rotorua, Ōmokoroa, Ōtaki, Maraenui, Kaikōura, Taruheru in Gisborne, and Patterson Road in New Plymouth, supporting three waters, flood management, and transport upgrades to enable the building of thousands of new homes.

Woods said the fund was set up to jump-start housing developments by funding necessary services, and the funding announced today would unlock more than 8000 new dwellings over 20 years with at least 5000 expected within a decade.

"Our government is making the most investment since the 1970s in land, housing and infrastructure like pipes and roads to enable new housing. There is no silver bullet to solve the housing crisis but investments like this will make a difference," she said.

"We know a massive piece of the missing puzzle in the housing crisis we inherited is infrastructure ... it's great for the government to come to the table as a partner to unlock much needed housing all over the country."

The projects included extensive stormwater management in Rotorua and Napier, a State Highway 2 intersection in Ōmokoroa, a local link road and cycleway in Kaikōura, and water supply and roading projects.

The largest chunk, for Rotorua, would reduce expected timeframes on stormwater management for Utuhina and Mangakakahi streams from 30 years to seven.

Woods said negotiations for funding a further 28 projects were still undergoing due diligence.

Previous spending from the fund - which is part of the $3.8b Housing Acceleration Fund - was a fast-tracked $6.1m to help support the building of 400 extra homes at Kenepuru Landing in Porirua, north of Wellington.

Woods also announced the launch of a review of building consents, saying a lot had changed in the 30 years since 1991 when the system was set up.

"The review will focus how to unlock productivity growth, stimulate urban development where it is needed, and make homes more affordable for all. We also want to provide assurance to building owners and users that building work will be done right the first time, and ensure that buildings are well-made, healthy, durable and safe," she said.

The review will not revisit the joint and several liability rule, nor consider the introduction of building consent authority liability costs, limitations on their duty of care, or a public building defects insurance scheme.

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