LGNZ welcomes much needed overhaul of building consent system

LGNZ says a total revamp of the building consent system, including addressing the issue of liability, is a critical step towards addressing New Zealand’s housing woes.

“Everyone agrees there’s a real need for more and better housing in this country,” LGNZ President Sam Broughton said. 

“The liability settings are a major roadblock. Councils are forced to adopt a more conservative approach because they’re often the “last man standing”. That’s slowing down the entire process of consenting, and ratepayers are unfairly left to foot the bill when claims are taken against councils.

“For years, LGNZ has been calling on the Government to investigate the liability issue. We are pleased this is included in the scope of the Government’s reforms.

“There’s a disproportionately high amount of risk resting with councils which creates huge inefficiencies in the system.

“In many cases, councils have to borrow money to pay for significant claims on behalf of others. This takes money away from investment in much needed areas such as infrastructure,” Sam Broughton said.

Liability is one part that’s being addressed in the proposed reforms. The Government wants a more consistent and streamlined system as a whole and is looking at options including voluntary consolidation of Building Consenting Authorities (BCAs), regional BCAs and a single point of contact for builders to submit plans.

“There’s no doubt that the current system is fragmented with 67 territorial authorities acting as BCAs. However, any changes must still ensure knowledge of the local environment is taken into account during the consenting process. For the reforms to be successful, any changes need to be worked through with the BCAs rather than imposed on them.

“We will be talking to the Minister of Building and Construction Chris Penk to give feedback and engaging with officials working on the review to ensure any new system works on the ground,” Sam Broughton said.