Local Government New Zealand welcomes the Government’s announcement today that it will move to introduce Special Purpose Vehicles to assist in funding housing infrastructure.
LGNZ president Lawrence Yule says in a statement that he is pleased to see further funding options for those councils experiencing pressure on housing infrastructure as a result of rapid growth.
“Councils in fast growing areas face issues building the infrastructure needed to accommodate new residents, such as roads and essential drinking, waste and storm water infrastructure,” Yule says.
“Many of these councils are not able to fund this necessary investment through rates or without breaching debt to revenue covenants, so special purpose vehicles which take these investments off a council’s balance sheet which means we can get on with this work much more quickly than otherwise.”
Yule says alternative funding mechanisms is a long-standing policy priority for LGNZ and it is great to see these necessary steps being taken in response to our advocacy.
“It is beyond existing ratepayers to fund the work needed to allow for the growth their cities are experiencing, so we welcome this latest initiative from the Government.”
Yule says there are other infrastructure issues around the country which may also need some innovative funding in due course.