Development levies can be ‘a scam’

• Published date: 29 May 2023
• Publication title: Bush Telegraph

Manawatū district councillor Andrew Quarrie says ratepayers are being ripped off but the council says the rules, and their application, are clear

The stoush centres on a decades-old house in the corner of a block of farmland in rural Manawatū.

“I tried to survey and sell off a surplus house. My son and daughter-in-law wished to purchase the house they were living in, rather than paying rent,” Quarrie said.

Despite no new development or building happening, to create a new title he was charged a $5800 development levy.

“The development levy comes about because of ... the increase in demand that new development produces for the district.

“The extra people who are housed in new subdivisions and new houses, they create extra demand on facilities and there’s a levy associated with that.”

Quarrie paid it — reluctantly.

“This house has been here for probably 70 years. It has occupants in it. There’s no additional demand on council services whatsoever.”

The levy Quarrie paid sits not with the new title, but on the remaining farmland, which no longer has a dwelling. There is potential for development there, but Quarrie, who lives on a separate block of land with its own title, said he had no intention of building anything requiring council services.

Therefore, he and others in his situation should not have to pay the levy, he said.

“I’m dead against it. It’s totally unjustified. It’s a scam. It’s taking money from ratepayers.”

Quarrie said he would have no problem paying a levy if he intended to build a house or other development that would draw on council utilities or services.

Surveyor Bill Riordan, Feilding director for Truebridge Associates, said hundreds of people could potentially be charged levies in similar circumstances to Quarrie.

“A development contribution is payable when an additional title is created or additional dwelling is built,” he said. “What it covers is the perceived increase in demand on council services as a result of either building a dwelling or...