Mayor welcomes new infrastructure fund

Mayor welcomes new infrastructure fund

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Generic housing development.

 

Auckland Mayor Phil Goff and Deputy Mayor Bill Cashmore have welcomed the government's announcement of a new infrastructure investment vehicle.

"Funding provided through a crown company, Crown Infrastructure Partners, will enable Auckland to speed up the construction of thousands of new homes in our city," Phil Goff said.

"Earlier this year we took to the government the concept of a special purpose vehicle (SPV) to fund infrastructure in a way that recognises the constraints on further council borrowing.”

"Under this vehicle we have lodged proposals with the government that would enable us to bring forward construction of around 23,300 new homes in south and north Auckland much earlier than would otherwise be possible.”

"The announcement of the SPV was made in Drury because this area is likely to be the first recipient of initial funding, with 700 homes planned.

"The initial investment of $387 million in transport and water infrastructure in Drury South and West, Paerata and Pukekohe will enable the construction of 17,800 dwellings much earlier than would otherwise be the case.

"A further major development will be around Wainui in north Auckland, with $200 million in infrastructure funding required for an additional 5500 dwellings.”

"The new investment vehicle will provide capital from the government and the private sector that will not be debt on the council's books. It will be funded through development contributions and targeted rates within the new housing developments.”

"Auckland is growing by 45,000 new residents a year and requires unprecedented levels of infrastructure growth to keep up with demand.”

"Increasing the supply of housing is a critical part of overcoming our housing shortage and slowing price rises caused by demand for housing exceeding supply," Phil Goff said.

"The new unitary plan ensures there is adequate land, greenfield and brownfield, to meet demand, but infrastructure servicing that land is necessary for homes actually to be built.”

"SPVs are another tool in our toolbox to enable us to lift the scale and pace of new housing development.”

 

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