ACT deputy calls for change to house infrastructure funding

A new bill aims to split the GST from building new houses between local councils and the Government.

ACT deputy leader Brooke van Velden has had her private member’s bill drawn from the biscuit tin. Her Housing Infrastructure (GST-sharing) Bill will have its first reading next month.

She said when it comes to ramping efforts up to build new homes across the country, “it’s infrastructure that’s missing”.

The party’s housing spokesperson said councils "just don’t have enough money to help more homes be connected to the community".

Van Velden said over $1 billion per year could be redirected to councils to help with building new sewerage, water and roading systems to support new houses.

The Government already has several ways to assist with infrastructure, but van Velden argued money should go directly to councils.

“The Government has the ability to say: ‘We like this project, we don’t like that one’, ‘we’ll fund this one, we won’t fund that one’. That’s giving more control to Government about where the houses will be built in an area, rather than the local councils knowing where the infrastructure is needed."

She said she believes "everybody's issue is with centralisation at the moment".

"We have a Government that is going against local democracy and it's going more towards having Wellington put in charge of everything.

"You see it with Three Waters, you see it with the health care reforms, you see it even with some of the local democracy projects that's happening around local councils."

Van Velden said while there's a clear need for infrastructure, "we know that councils don't have the money for it".

"The Government's response is 'let's change all of the planning laws for the largest cities and go against what councils want, then let's give them money that we want to spend on infrastructure that we like.'

"The ACT Party is saying we need to have more local concern, more local voice."

Despite that, the bill itself does not specify councils must spend the money on infrastructure.

Van Velden says she is certain the funds will go towards pipes and roads.

“I have faith. If that is what they’re calling for, that is where the money will be spent.”