| How to Kill the Goose that Lays the Golden Egg |
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| Centre Digests | |
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Why Development Contributions and High Compliance Costs Must Go Take note of the 'conversation' between Dr Grimes, Chairman of the Board of the Reserve Bank, and Dr Brash, former Governor of the Reserve Bank. Then read the compliance costs required to manufacture a new lot within Kaipara District. Do not think this case study reflects a problem unique to Kaipara District – it's coming to a town near you or has already arrived. Then look at the prices realised for a recent auction of sections on the harbour edge at Mangawhai. Then ask "When does $10K plus $10K plus $10K equal Zero?" Answer: When compliance costs are up to $70,000 per lot and section prices start at $55,000. When investors are confronted with this simple arithmetic don't be surprised if they don't invest in making any more sections. This essay "The End of the Kiwi Bach?" published in Straight Thinking magazine in 1996 showed our crystal ball was working well even then.
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