Yesterday, the Minister of Finance, Bill English, read the Budget in Parliament. One important matter in the Budget was a plan to bring down house prices, especially in Auckland. In the last year, house prices have increased by 8% throughout the whole of New Zealand but 11% in Auckland. The government wants to use more rural land for housing. This land would probably be cheaper than land in the city. On the other hand, the Auckland City Council’s plan is to build up instead of building out. The Council says that more buildings could be higher. Many people would be happy to live in apartment buildings in the city.
Councils have to pay for infrastructure in a city. Home owners pay rates to the council and councils use that money to provide transport, water and waste water systems. If the city spreads out too far into rural land, the infrastructure becomes more expensive.
Although the government and the Auckland City Council have spent 6 weeks discussing housing, the plan in the Budget shows that they cannot agree. Other councils like Hamilton and Tauranga are also worried about the government’s plan. They feel that a city plan is not the business of central government.
To find out more about the Budget, listen to May 26th 2012. To find out more about Auckland city plan, listen to May 1st 2013.
Questions
1. Do you think that cities should be allowed to spread out more?
2. Do you think the central government should have power over a local government?
3. Why does the government want to bring down the cost of housing?
4. In the US and Canada, it is believed that “affordable housing” should not cost more than 30% of the household income per month (for rent or mortgage payments). Many people in New Zealand pay more than this. What about in your country?