Friday, March 08, 2013

No subsidies for millionaires!

Yesterday the Auckland City Council unveiled plans to redevelop the Wynyard Quarter on the waterfront. A key part of the redevelopment will be high-end apartments and townhouses. And to make sure that they sell, Auckland City Council is planning to subsidise them:

Developers could receive ratepayer subsidies to build $1 million-plus apartments at a swanky housing development at Wynyard Quarter on the Auckland waterfront.

Subsidies along the lines of a secret deal struck in 2009 for the new $132 million ASB Building at Wynyard Quarter could be worth thousands on each apartment.


At Wynyard Quarter, the starting prices for the smallest apartments, on what will be leasehold land, will start at $500,000. The average price of apartments and townhouses will be $1.2 million to $1.3 million and larger ones will cost more than $2 million.

The apartments are expected to appeal to wealthy couples, or couples with one child. There are no plans for affordable housing on the council-owned 2.76ha development site.

So basically this is a millionaire's row. People who can afford these apartments don't need subsidies, and shouldn't get them. There are far better uses for ratepayer's money than on handouts for the rich.