Tuesday, June 06, 2006

developers 'squeal'

Herald reporter Bernard Orsman describing property developers as 'squealing' in an article about the Auckland City Council raising development levies is apt. For a sector that strongly identifies with the right to argue against a form of user pays is an example of their self serving nature and disregard for the consequences of their actions. The council has responsible outlined $280 million of new spending needed as a result of increased development, and is asking developers for $24 million of that, which falls well short of the impact they cause. They should be responsible for a much larger share of the impact they cause. $950 in costs against the sale price of a house/apartment isn't particularly significant. The Greens want to take it further, increasing the levy and providing discount incentives for solar panels and rainwater collection systems.
The developers don't have a leg to stand on. If their developments and future developments are to succeed, they not only bare responsibility for some of the costs, they will benefit from the public investment into infrastructure from an increased standard in living the buyers of their developments will receive.

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