Parker DavidHon DAVID PARKER (Labour): I want to emphasise something that I do not think has been well covered in this debate so far. One of the problems that we have around Auckland is that the cost of extending both central government and local government infrastructure runs into many tens if not hundreds of millions of dollars extra every year than it would if we had appropriate planning for growth. I have already conceded the point and made clear in this amendment that we need to be very careful not to inefficiently use existing infrastructure and to make sure that the pricing decision encourages the most efficient use of existing infrastructure within urban boundaries and the most efficient use of new infrastructure outside what are the existing urban development boundaries which we say should not exist. But this other point that I am making is what is the cost of transport corridors which are in the main rail corridors public transport bus lanes local roads and State highways? All of these things should be purchased well in advance or designated well in advance—and I think generally in a city that is growing they should be purchased well in advance—while they can be purchased for rural land prices. No unfairness to the rural property owner—they get fully compensated. If you are going to form new regional parks you purchase them for rural land prices rather than for 10 times that amount once the land bankers get it and the value is driven up as the date for future subdivision gets ever closer because there has not been enough planning in advance. The second point I wanted to emphasise is that in order to stop the inefficient use of infrastructure—oh sorry. How that flows through to cost of course is that if those huge costs are passed on in development levies which are higher than they would otherwise need to be that then translates through to the price of all housing—not just the new housing but the existing housing which is lifted by the rise in price of the marginal cost of the new which is how markets clear—but it also drives up the cost of central government taxes and future rates because not all of those costs are put to the subdivision. In order to achieve efficient use and you do need to internalise those costs of the new development—I did not develop this point when I first spoke but one of the things that happens when city costs go up too high is it actually becomes more competitive for other cities to compete with them. So rather than actually throwing more fuel on an overheated property market if you get these cost signals right you actually get regional development in other parts of the country and that is what should happen. We are as a country over-dependent on Auckland. You know we have a greater weighting towards one centre of population—which is Auckland—than virtually any other developed country in the world has except the small city States like Singapore or Hong Kong which are virtually only a city. Otherwise there are only one or two other countries in the world—Ireland with Dublin being one of them—that are as weighted towards one centre of population as we are and it becomes inefficient. It becomes unfair to other parts of the country because you create this vortex that just by virtue of size rather than efficiency sucks in other businesses. So for example if you are a potato chip manufacturer based in Dunedin you eventually relocate to Auckland because of the transport costs because of the relative size of Auckland rather than because of any natural advantage to the production of potato chips in Auckland.Hon Dr Jonathan Coleman: Just like the member himself.Hon DAVID PARKER: Just like the member"—oh thank you. Well I sort of have a foot in both camps still. Both are very good places to which I am attached. So those economic development things are very important. When you get these things wrong and you get house prices out of control like they are in Auckland you actually see the movement of New Zealand - born people. There are very few people in New Zealand and indeed in Auckland who know we have had net migration for a long period now out of Auckland of New Zealand - born Aucklanders. There are more people who were born in New Zealand who are leaving Auckland than are going to it. That is even taking into account the effect of Christchurch which of course led to a lot of people initially moving from Christchurch. Even with those statistics in the latest census we had net population of New Zealand - born—"