Explanatory note

This Supplementary Order Paper amends the Local Government Act 2002 Amendment Bill (No 3) to reinstate the definition of community infrastructure as set out in section 197 of the Local Government Act 2002 (the principal Act).

A large number of submissions to select committee highlighted that the Bill’s new and narrow definition of community infrastructure inserted into section 197 of the principal Act would prevent local authorities from using development contributions to help fund libraries, museums, swimming pools, and other important community facilities. Development contributions provide capital to help fund investment in infrastructure to help meet the needs of a growing population. Development contributions ensure that new ratepayers pay their share of the costs of putting in new infrastructure to service them, rather than the cost of such facilities falling on existing ratepayers.

Auckland City Council said that without development contribution funding for such community facilities they would not be built or rates would have to rise by 8.5%. This Supplementary Order Paper would restore the definition of community infrastructure in the principal Act as follows:

• (a) land, or development assets on land, owned or controlled by the territorial authority to provide public amenities; and

• (b) includes land that the territorial authority will acquire for that purpose.