Planning

The Resource Management Act 1991 was an act of economic self-sabotage. Over three decades it inflated house prices by imposing what economists call a regulatory tax: the share of prices created by planning restrictions alone.

This year marks my twentieth anniversary working in think-tanks. Two decades ago, I produced my first major publication for London’s Policy Exchange with the late Professor Alan W.

This week, the Government unveiled its blueprint to replace the Resource Management Act. This is not just another policy tweak – it is a game-changer for New Zealand’s economy.

Housing policy made significant progress this week. The housing minister, Chris Bishop, addressed the Wellington Chamber of Commerce and released a cabinet paper outlining his plan for solving the housing crisis.

As tempting it may appear to tap into land value uplifts, we need to be cautious. The model can work – but we need to apply it only in the cases where it can work.

Three modest proposals for restoring housing affordability.

The Productivity Commission should welcome Minister English’s invitation to look at the first principles of planning. It should ask the most basic question: What, if any, planning system does a country like New Zealand really need?

The best we can do about Auckland’s housing shortage apart from building more houses is to establish a rational expectation that houses will be built in the future.