Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Newsroom.co.nz
Newsroom.co.nz
Politics
Jonathan Milne

National frontbencher backs big party donor in $138m case against housing agency

Winton chief executive Chris Meehan: 'I personally have made political contributions to National and Act for a number of years to support the democratic process.'

National housing spokesperson Chris Bishop rejects any conflict of interest, saying the question of whether Queenstown developer would get a meeting with a National Party PM is one for after the election

Housing developer Winton has told shareholders it is "absolutely firm in its resolve" to get approval for its 5000-property Sunfield subdivision in south Auckland, and will pursue its High Court case again Kāinga Ora for refusing to fast-track the project.

The company is already developing 50 hectares of land near Papakura, and in its annual report it promises to pursue alternate legislative pathways to rezone the remaining 150 hectares of its proposed village of 4400 homes and three retirement villages.

Shareholders have appointed former finance and infrastructure minister Steven Joyce to the Winton board, and last week director-shareholders Chris and Michaela Meehan donated $103,260 to the National Party campaign coffers.

READ MORE:Big National Party donors investigated over crowded migrant hostelDonations cases back to haunt National and NZ FirstStuart Nash donor lobbied for high-wealth tax study exemption

But Chris Meehan, who's travelling overseas, has emailed Newsroom saying these are not part of the company's strategy to progress the Sunfield development.

Earlier this year, he also donated $50,000 to Act. And his company Speargrass Holdings Ltd donated another $52,894 to National last year.

"I personally have made political contributions to National and Act for a number of years to support the democratic process," he says.

"As a Winton board member, Steven’s economic, financial and strategic credentials will add considerable value around the board table. He has not been appointed for government relations or political lobbying."

This week, National housing spokesperson Chris Bishop cautiously backed Winton's stance against Kāinga Ora. "I'm just frustrated that at the time of a housing crisis, you've got a private sector development that wants … to fast-track large-scale housing developments, and it looks like there's one rule for the government and another rule for the private sector. And I think that's a mistake."

National Party housing spokesperson Chris Bishop says there is no conflict of interest in arguing the corner of party donor Winton. Photo: Getty Images

When Bishop first issued a press release in support of the Winton court challenge last year, he says he had no idea the Meehans were donors; this time, he's going in with his eyes wide open.

"It's difficult for me to comment now that legal action has been filed. And I might be potentially the minister in two months or so," he tells Newsroom. "Everyone's entitled to take legal action against the Crown. And clearly, Winton has. And that will play out, legally.

"As I said back in October, last year, I just think that Kāinga Ora, the minister and the Government, should have assessed the proposal under the Urban Development Act. So I'm on the record, saying that.

"And basically, the Crown excuse back in October was they were too busy to do it. Meanwhile, they've been progressing their own urban development proposals, when the Act was not meant to just apply to the Crown but to apply to private developers as well."

He says National's housing policy would support more private sector development, not just in Auckland but around the country. 

"If Chris Bishop became Minister of Housing, ethically he would not be able to have anything to do with the Winton case." – Max Rashbrooke, Victoria University

Bishop is also the National Party's campaign chair. He does not believe he is conflicted by the donation to the National Party. "I don't think so. As long as it's disclosed properly, which has been done, that's why we have disclosure laws.

"When I issued that press release in October last year, I had no idea that Winton had donated, or was going to donate, to the National Party. I was utterly unaware of any of that stuff."

Chris Meehan has written to seek a meeting with Prime Minister Chris Hipkins, but has not been granted one.

Would that change if Christopher Luxon were Prime Minister? "We'll consider that in due course," Bishop says. "It's not for me to decide who meets with the prime minister or the leader of the political party. Certainly, donors don't get preferential access – that's not the way our system works."

Max Rashbrooke, from Te Herenga Waka Victoria University of Wellington's Institute for Governance and Policy Studies, disagrees. 

"If Chris Bishop became Minister of Housing, ethically he would not be able to have anything to do with the Winton case," he says. "The thing about donations to a political party is that they compromise the entire party in one go, because the whole party is potentially beholden to, or at least in a relationship with, that donor.

"I think it makes it very hard for the National Party to make an unbiased decision about Winton's project."

Act deputy leader and housing spokesperson Brooke van Velden also issued a statement supporting Winton in October last year. "The Government’s attempts to meddle in the housing market means it is facing court action for anti-competitive behaviour," she said then. "No wonder we have a housing crisis when even the Government prevents development."

This week, she wasn't commenting.

Auckland housing plans create tensions

This is not Kāinga Ora's only clash in Auckland. Last week, Housing Minister Megan Woods retracted the Government's directive to Kāinga Ora to investigate development opportunities along Auckland’s light rail corridor. The backdown came after furious letters from the city's mayor, Wayne Brown, on behalf of the council. 

Woods stopped the special development assessment, pending confirmation of the light rail route in November. The pause would also enable the Government to further engage with Auckland Council and other sponsors to hear their views, "and how we can better work together”, she wrote.

That puts Kāinga Ora in the unenviable position of having to defend its actions both in the political domain ("The mayor was blindsided," says Bishop), and in the courts. 

"It's urgent, we just want to get on and contribute to New Zealand’s housing supply – addressing supply helps address affordability." – Chris Meehan, Winton

In his email to Newsroom, Meehan says Winton will consider other options alongside its court action against Kāinga Ora. "We proactively engage with industry bodies and make submissions where we consider it appropriate to do so," he says.

"We always look at the legislative instruments that are available to achieve consents for our developments."

He says he visited the Sunfield site a short time ago. "I was out there recently with a group of Winton shareholders explaining the vision for Sunfield including our innovative masterplan for a more sustainable and healthier lifestyle."

15-minute community

That masterplan is for a 5,000 dwelling, solar-powered "15-minute sustainable neighbourhood", he says, designed to enable 15,000 New Zealanders to live and work locally.

It consists of 4,400 individual homes and three retirement villages. With 90 percent fewer cars, it allows for more affordable homes and more shared spaces. These would include 22.8 hectares of open spaces, green links, recreation parks and reserves and ecological offsets.

In the 250,000 square metres of employment, healthcare and education spaces, he says, there will be a 4 hectare town centre, two schools, four convenience retail and mobility hubs, and permanent jobs for 11,000 people.

"With all of that being said, we believe it is the perfect fit for the alternate legislative pathway, the new Urban Development Act, instead of the Resource Management Act."

So the company has issued proceedings in the Auckland High Court, under the Commerce Act, alleging anti-competitive conduct by the Government housing agency Kāinga Ora.

Winton is seeking Court declarations that Kāinga Ora’s conduct is unlawful, and an order requiring Kāinga Ora to consider Sunfield for assessment under the Urban Development Act, as well as "substantial damages" for Kāinga Ora’s conduct to date.

The stated purpose of the Urban Development Act is to facilitate urban development that contributes to sustainable, inclusive, and thriving communities, Meehan says.

Increasing immigration, constrained land supply, and rising rents were putting pressure on housing supply – so it is important to open the doors to more privately led development. "It's urgent, we just want to get on and contribute to New Zealand’s housing supply – addressing supply helps address affordability."

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.