Neil Ashby on Building Consent Fees Gravy Train

A Letter to the ODT by Neil Ashby:

Many of us occupied in the building industry are dismayed at the ease with which the Dunedin City Council notifies the monotonous requests for hikes in the cost of building consent fees (ODT, 3.6.09).
These fees have been aggressively increased annually over the past 10 years at least, although a precedent was set in this current year — they actually increased twice. The increase this time was 25%. How nice it would be if those of us active in the private sector ofthe industry could increase our charges in such increments and at such regular intervals.
A graph showing inflation and DCC consent charges over the past 10 years would clearly illustrate how outrageous the evolving situation is becoming.
Those members of the Dunedin public contemplating doing a $150,000 alteration/addition to their home will now face a base fee, for the building consent to do that work, of approximately $5200 (i.e., after these new increases are implemented). If you had a house in Waihola (under the jurisdiction of the Clutha District Council), the equivalent fee would be $1288.
One of the feeble reasons given for the installation of this last increase was that they wished to regain revenue due to the lower number of, and the lower value of building consents currently being issued. I wonder if the DCC has given any consideration to the possibility that one ofthe reasons there is currently less building work being proposed might be that the accumulation of costs local government has levied on building work may be putting building beyond reach of many consumers.
It should be understood also that building-consent fees are set proportionately to the value of building work to be done. Given that building work generally increases in cost with the effects of general inflation, that in effect provides the council with an ongoing revenue increase. There should be no need for additional adjustments to the "gravy train" discharge values.