visionary thinking

Infrastructure Developers Pay for Infrastructure

An often heard refrain is that Developers should be paying for infrastructure provision.

The reality is that Developers are paying.

There is an example, the Hayfield Precinct in Hingaia, Papakura.

The Hayfield Precinct will provide 1546 new households and each will pay a development contribution in accordance with Auckland Council's Development Contribution Policy, which can be found on their website at (, plus a contribution to Watercare plus a contribution to the Power Supply plus a contribution to the Telecommunications. Supplying Gas is optional and often excluded. All plus GST.

The Development Contribution for each new household in the Hayfield Precinct will amount to the following;

Auckland Council Reserve Acquisition - Hingaia $6,172

Auckland Council Reserve Development - Hingaia $2,387

Auckland Council Stormwater - Manukau Central $4,324

Auckland Council Transport - South $5,079

Auckland Council Community Infrastructure - Hingaia $826

Subtotal of Auckland Council Development Contributions $18,788


Water and Wastewater Infrastructure Growth Charge $11,430


Power Supply Network Upgrades $2750


Telecommunication Network Upgrade $1,200

Subtotal Other Infrastructure Charges $15,290

Total Charge for each new household $34,078

Multiply the $34,078 by the 1546 new households in the Hayfield Precinct gives a Development Contribution of $54,684,588.00 to be paid by the Developers.

Plus GST of $7,902,688.20

Equals a Grand Total of $60,587,276.20 to be paid.

The question is what is being done with the $60.5 million?