Anyone outside Labour and the Greens knows the housing market is just like any other market. Prices are set by supply and demand. We have heard so much for so long about the demand for houses pushing prices up but the price is also being forced up by supply issues. Rising costs for new houses will drag up the price of existing houses. We see this clearly in land value. Council restrictions on land supply as well as the cost of subdividing and the resource consent process are ultimately passed on in the form of higher prices.
Another factor is the cost of building consents. Fees charged by councils also have to be passed on. It is a long-held suspicion that councils building inspectors actively create more paperwork so they can charge more fees for consents.
This is a real problem with any monopoly regulator who stands to profit from an abuse of power. It is why the Local Government Act has a clause to make such activity illegal. Section 150 states that councils “must not…recover more than the reasonable costs incurred”, which applies to all fees for approvals, permits, certificates, inspections, or consents.
Figures I have obtained via the Official Information Act show that Hamilton City Council has been profiteering from building consent fees. The overcharging in the 2019-20 financial year is 40% more than the costs.
I have contacted the Mayor’s office. Will she do anything? Or is she just there to collect a salary and cut ribbons with no intention of doing the job she is contracted to do?
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