Dr Oliver Hartwich: New law, old mistakes

The Resource Management Act 1991 was an act of economic self-sabotage. Over three decades it inflated house prices by imposing what economists call a regulatory tax: the share of prices created by planning restrictions alone. In Auckland, that tax accounts for up to 56% of the average home price. Infrastructure consenting cost developers $1.29 billion a year.

Meanwhile, New Zealand’s product market regulation ranking has dropped to 20th in the OECD, down from 2nd in 1998.