Tauranga City Council is taking on the government over its control of the rules city councillors say are contributing to the country's housing crisis.

Councils' ability to build houses is constrained by government policies. The government is trying to change the rules through a proposed National Policy Statement on urban development capacity.

Tauranga City Council officers on Willow Street. File photo.

Tauranga City Council's reply is that achieving the outcomes sought by the NPS is illegal for councils under current law, beyond the scope of councils to act under the Local government Act and the Resource Management Act.

Proposed quarterly reporting requirements will impose an additional major workload and impact how the city council manages its own growth, as well as that of the SmartGrowth partners.

'Local authorities alone cannot deliver all the essential elements to support growth due, not only to an inability to pay for the required infrastructure, but also in terms of the many elements that fall outside their control,” says TCC planning manager Michael Tucker's report, presented Strategy and Policy committee meeting on Monday.

'Consultation with other providers is required by the NPS, such as with NZTA and the Ministry of Education, but consultation will not guarantee that provision or contribution is forthcoming for elements such as State Highway investment or new schools required to support growth.

'There needs to be strong commitment from Central Government to collaborate with local authorities to deliver these elements.”

The council is challenging the NPS on a number of points including a requirement for 15-20 per cent 'freeboard” in providing housing land.

It could create ‘planning blight', where an excess of zoning/infrastructure capacity is provided and hampers the best use of resources.

'A recent example of such over-ambitious projection of growth into the long term and its consequences can be seen in the Rotorua Eastern Arterial designation, which was in place for over 50 years before its uplift earlier this year, having created significant severance and upheaval in the community and curtailing the efficient use of urban land,” says the city council submission.

The government has been referred to the Smart Growth Strategy, a growth strategy that is cross boundary, involving the Western Bay of Plenty District Council, the Tauranga City Council the Bay of Plenty Regional Council, plus iwi.

As at December 31, 2015, there were 9350 greenfield sites enabled by the operative Tauranga City Plan, enough to accommodate around 9.5 years of growth, catering for 83 per cent of the projected demand over this period.

The balance will be provided by infill development and intensification within the existing urban area.

TCC has already committed most of its available debt capacity to funding growth. Any requirement stemming from the NPS to increase investment in infrastructure without financial support is likely to cost both existing and future ratepayers.

TCC wants central Government introduce measures to ‘de-risk' local authority debt that is for growth related capital expenditure in high growth areas.

While housing affordability is identified as a primary issue driving the NPS, The council submits there is potentially only a limited impact supply by itself can have on housing affordability in the short term. Alternative measures, including a national strategy for delivering non-market housing, should be pursued.

'The central issue identified by TCC is that the NPS will not realise its objectives unless there are other changes, tools and measures introduced to assist councils, and several other relevant entities, to deliver all the elements required for building successful urban communities.

'Local authorities alone cannot deliver all the essential elements to support growth due not only to an inability to pay for the required infrastructure, but also in terms of the many elements that fall outside their control.

'Consultation with other providers is required by the NPS, such as with NZTA and the Ministry of Education, but consultation will not guarantee that provision or contribution is forthcoming for elements such as State Highway investment or new schools required to support growth. There needs to be strong commitment from central Government to collaborate with local authorities to deliver these elements.”

The Strategy and Policy Committee approved the submissions.