By Lynn Grieveson
The Labour Party has offered to support a final reading of the Government's bill to amend the Local Government Act to control development contributions.
Prime Minister John Key said on Monday in his weekly post-cabinet news conference the bill had stalled and would not be passed before Parliament rises on July 31 for the September 20 election because of a lack of support and time.
Key has also 'parked' Resource Management Act and Employment law reforms this year because of opposition from either the Maori Party and Peter Dunne, or the loss of John Banks, who resigned last month.
Labour leader David Cunliffe told reporters before Labour's Parliamentary caucus meeting on Tuesday that Labour would support the bill for a third reading, as it had done for its first and second readings. A bill is passed into law after its third reading.
Cunliffe said the bill did have the numbers to pass, contrary to the Prime Minister's comment.
"We will be supporting that Act as we did at first and second reading. It does make a contribution to housing affordability and that is why we are prepared to support it even though it is imperfect," Cunliffe said.
Cunliffe said Key may have been confused.
"Or maybe they just aren't competent enough to schedule the Bill through parliament in its final session. We are giving them the opportunity to do that because it will improve the opportunity for more affordable housing," Cunliffe said.
Key later told reporters on his way into Parliament for question time the Local Government Minister would be contacting Labour to discuss putting the bill forward, provided Labour was prepared to support the bill without changes.
Earlier, Labour Housing Spokesman Phil Twyford also said Labour was prepared to support the bill.
"We are prepared to rescue the Government from their incompetence on the Local Government 2002 Amendment Bill," Twyford said.
"They have been talking about doing something on development contributions for six years now. They haven't done a thing and because of their own incompetence now they don't think they can get a Bill passed in time. We voted for that Bill in first reading and second reading," Twyford said.
"While it is flawed and we think it is a wasted opportunity to actually do something more bold on development contributions, we see it as better than nothing. And we are prepared to vote for it on that basis because the housing crisis demands that no stone be left unturned in trying to reduce housing costs," he said.
"But for the Prime Minister to say yesterday that he no longer had the support in the house to support that Bill is quite wrong. We voted for it at first reading and second reading and we are willing to do it again. I don't know why he would think otherwise."
Hansard records for the first reading showed National, Labour, New Zealand First, Maori, ACT, United Future and Brendan Horan supported the bill, while Green and Mana opposed it.
Records for the second reading show it was supported by National, Labour, ACT and United Future, but opposed by Green, Mana, New Zealand First and Maori.
Local Government New Zealand President Lawrence Yule said Councils generally favoured the proposed changes to the Local Government Act around development contributions.
"We've got a number of members who would like that bill to go through," Yule said, referring to the needs of many for certainty about the future of development contributions.
Twyford vs Smith
Meanwhile, Twyford challenged Housing Minister Nick Smith in Parliament (see video above) to explain a drop in building consents in Auckland in May. Twyford said an average 4,408 dwellings had been consented in Auckland since National was elected in 2008, while the average under Labour from 1999 to 2008 was 9,055.
Smith said Twyford had been selective in his use of averages and consents in Auckland were now treble those seen at the end of Labour's time in power.
Smith said Cabinet approved 41 special housing areas on Monday, which was a process where land was 'zoned' residential in seven weeks, rather than 7 years under the previous regime.
"Cabinet approved a greater area of new land for residential (development) in 1 day than occurred in 9 years of the previous Labour Government," Smith said.
Twyford then raised the issue of Labour supporting the third reading of the Local Government Act changes around development contributions.
"Can he confirm the panicked phone call from the Minister of Local Government about an hour ago to confirm Labour’s support for the development contributions bill at its third reading; if so, why is the Government continuing to play politics with Auckland’s housing and growth like it did with the Resource Management Reform Bill?"
Smith said Labour had made changes to the Resource Management Act and removed the right of appeal on development contributions, which had contributed to a doubling of house prices.
"It is as a very latecomer that Labour now accepts that its changes to the Resource Management Act and its changes to the Local Government Act were wrong," he said.
(Updated with comments from Key and Local Government NZ, Video of exchange between Twyford and Nick Smith in Parliament over housing consents and the development contributions )
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