The High Court has ruled that North Shore City Council’s development contributions policy is inconsistent with the requirements of the Local Government Act 2002.
Wednesday, March 28th 2007, 12:00AM
by The Landlord
The decision “blows the whistle on widespread abuse of local government sector’s ability to charge development contributions for the purpose of recovering growth-driven capital expenditure costs,” the Property Council of New Zealand (PCNZ) says.
Tthe Court found that North Shore City Council had: “made an error of law in failing appropriately to explain in its development contributions policy … why … it has determined to use development contributions as a funding source”.
Connal Townsend, chief executive of the PCNZ, said the decision “is groundbreaking, but not surprising”.
“The Property Council has long argued that North Shore City Council’s development contributions policy was both illegal and unfair.”
“Since 2004 local authorities such as North Shore City Council has used development contributions as a means of gouging money out of young families who can ill-afford to pay the skyrocketing cost of compliance.”
