The Dunedin City Council has raised its building consent fees, despite admitting recently they were significantly higher than those in other centres, and despite a review being under way.
The move has angered Master Builders Federation Otago president Mark Ward, who said he could not understand why the council would increase fees while a review was under way.
But Cr Kate Wilson said yesterday the rise was "very small", and was necessary to offset consumer price index rises.
Not raising fees would have resulted in ratepayers picking up the cost, and would have been a "knee-jerk reaction".
The rises were included in the council's annual plan in January, and the plan was voted into effect on Monday.
Building consent fees rise despite figures and review> From Page 1Since last year, building industry figures have been claiming Dunedin's consent fees were at least double those in other areas, and the cost was passed on to consumers, making it more difficult for people to build.
In May, the council received a report showing both the cost of consents, and the cost of running the building control department, were significantly higher in Dunedin than in other centres.
It organised a review of the department and fees at that time, and Cr Wilson promised then to host building industry groups to help get to the bottom of the matter.
Mr Ward alerted the Otago Daily Times to the price rises, after he was contacted by a member.
"If this is true, it's almost unbelievable that they could do this when their fees are under review for being the highest in the country.
"This also seems strange when they said they want to work with the industry to reduce the fees," Mr Ward said.
"It's interesting, put it that way."
Responding, Cr Wilson said the council knew the fees were higher, but still did not know why.
"If we had done a knee-jerk reaction [to the latest rises], we would have fixed it to an extent, but it would have been a ratepayer subsidy."
Mr Ward disagreed.
He said if the building industry had been paying, for instance, 50% more for its consent fees than other areas, "we've been subsidising the ratepayers".
"And that's quite a lot of money."
Building consents: Fee rises (from October 1)
Cost of work: Current fee / New fee
• Up to $5000: $424 / $432
• $10,001 to $19,999: $1293 / $1319
• $50,000 to $75,000: $2561 / $2612
• $100,001 to $200,000: $5317 / $5423
• $400,001 to $500,000: $9835 / $10,032
• $900,001 to $1,000,000: $16,917 / $17,255
