BUILDING FEES

Press, Volume XCII, Issue 27750, 30 August 1955, Page 16

BUILDING FEES

COST OF LOCAL BODY PERMITS

CITY COUNCIL OPPOSES DECREASE

No justification could be seen for a reduction in building permit fees which were in accordance with the standard code, or in other fees for work undertaken by the council at cost or less, the City Council decided last evening. Before the council was a letter to the Municipal Association from the Minister of Housing (Mr W. Sullivan), which asked for a review of the fees charged. Builders had been particularly concerned with the costs involved by home-seekers, the Minister said. Most local bodies operated on the scale set by the New Zealand standard code of building by-laws for permit fees, but there was a wide variation in the fees charged for sewer and water connexions. The scale charge for a building permit for a dwelling valued at £2500 to £3OOO amounted to £l2, which was a fixed fee, irrespective of whether weekly inspections were made by a building inspector. “You will appreciate the difficulties of many home-seekers in obtaining sufficient finance to enable them to bridge the gap between the maximum loans available and the total cost of the particular proposition,” said the Minister. “I am anxious to find ways and means of reducing the costs of. properties. It seems that the average person could be faced with an outlay of approximately £6O in all for a modest dwelling (sewer connexion £2l, building permit £l2, car crossing up to £2O, and sundry fees £7). and builders and home-seekers alike find it difficult to substantiate that this amount is actually incurred by the local authority.” The City Engineer (Mr E. Somers) reported that he could see no reason why permit fees should be reduced. ‘‘Admittedly, the council will make a profit on some permit fees, but equally truly it will make a loss on others,” he said. “Our charges for building permits are in accordance with the standard code. Water connexions are charged at an average rate which returns the council no profit. Similarly, car crossings are charged at a rate of £5, which doe» not fully recompense the council.”