Government to oppose appeal blocking $1.2b Auckland housing scheme

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry in central Auckland.

Community groups South Epsom Planning Group and Three Kings United Group want to overturn approval for the redevelopment of the 22-hectare quarry and have lodged appeals in the Environment Court which would require the site to be restored to pre-quarry levels.

Smith said the practical effect of the appeals, if they succeeded, would be to reduce the number of new dwellings by 1000, increasing their cost and delaying the project. Situated some eight kilometres from the Auckland central business district and on major public transport routes, the Three Kings development is a major test of the capacity to build mass-scale and timely housing in the country's largest city, which is chronically short of affordable housing.

A corner of the area has been designated as a Special Housing Area and some 78 homes are under construction, but the SHA approach is not possible for the rest of the proposed development because it includes buildings up to six storeys high. The Three Kings plan was first lodged in 2008 and was subject to extensive community consultation before resource consents were granted. The community groups lodged appeals earlier this month.

"The most likely outcome, if the appeal is successful, is that this disused quarry will remain vacant for another decade while Auckland families struggle to find suitable homes to buy or rent," Smith said in a statement. "The Three Kings case confirms the need for Resource Management Act reform and the impact it has on Auckland's housing development."

Auckland's shortage of new housing is cited as a major factor in driving up prices in the country's biggest city, coming at a time when New Zealand is experiencing record inbound net migration. Reserve Bank governor Graeme Wheeler has previously said height restrictions and not-in-my-back-yard attitudes in the city have underpinned the shortage, and Prime Minister John Key last week said he will work with anyone to achieve his government's preferred approach on RMA reform.

The government made the decision to join the proceedings last week and lodged its notice joining the action today, the Auckland Anniversary holiday.

Smith said he joined the proceedings "to make a firm stand in favour of these sorts of plan changes that are needed to address Auckland's growth and housing problems," while Housing NZ joined because the appeals inhibit its ability to improve the supply and quality of housing in adjacent areas.

(BusinessDesk)