The Infrastructure Funding and Financing Amendment Bill passed by Parliament today will give developers and councils more innovative tools to fund and finance the infrastructure New Zealand needs to grow, Housing Minister Chris Bishop and Parliamentary Under-Secretary Simon Court say.

“Fixing the basics and building the future for New Zealand requires us to tackle the barriers which have prevented the delivery of the new homes and projects that will grow the economy, improve living standards and create jobs,” Mr Bishop says.

“The Government’s Going for Housing Growth programme delivers solutions through three pillars:Pillar Onefrees up land for development through Resource Management Act reforms and changes to national direction;Pillar Twoimproves infrastructure funding and financing; andPillar Threegives councils stronger financial incentives to support housing development.

“Pillar Two addresses a key obstacle to housing growth: developers are often ready to build new homes, but councils lack the borrowing capacity to deliver the roads, water and other essential infrastructure needed to support them.

“Instead of relying on council borrowing, the Infrastructure Funding and Financing Act allows infrastructure to be financed by private investors and repaid over time through levies on the properties that directly benefit from the infrastructure.

“The Act was inspired by the successful Milldale development north of Auckland, where this model unlocked the infrastructure needed to support thousands of new homes for Kiwi families.

“However, the Act has fallen short of its potential and proven too difficult to use in practice. Unnecessary complexity, cost and bureaucratic hurdles have limited uptake, with only three levies authorised under the Act to date.

“The changes passed today will make the Act faster, simpler and more practical to use by removing unnecessary barriers, streamlining the levy approval process and broadening the range of infrastructure projects that can be funded using this model.

“This includes transport projects delivered by the New Zealand Transport Agency (NZTA) and KiwiRail, as well as water services infrastructure delivered through the new water organisations.”

Mr Court says the Bill also allows ongoing operational and maintenance costs to be funded through levy revenue.

“Allowing ongoing operational and maintenance costs to be recovered through levy revenue incentivises a whole-of-life design focus that will maximise value-for-money and make the model more attractive for future projects,” Mr Court says.

"The Bill also means councils and other infrastructure authorities will no longer be able to unnecessarily hold up proposals that meet the requirements of the Act. That will give developers greater certainty, reduce delays and help get more infrastructure projects underway."

“With these improvements, the Infrastructure Funding and Financing Act is now a much more practical option for councils, developers and infrastructure providers looking to get infrastructure projects off the ground. We encourage the sector to make full use of it.” Mr Bishop says.

“By making it easier to deliver the roads, water infrastructure and transport links our growing communities need, these changes will enable more homes to be built, support the economy and ensure growth pays for growth.”