David Cunliffe: LVR – 1st Home Buyers | DoC Dam Submission

At his weekly pre-caucus press standup Labour leader David Cunliffe answered questions about ASB Bank's decision to cease pre-approving loans to people with low deposits, and said Nick Smith had some explaining to do over the Department of Conservation's Tukituki Dam submission.

The ASB Bank changes would make it more difficult for first time home buyers to borrow which was “very unfortunate”, Mr Cunliffe said.

The government had not coordinated with the Reserve Bank and Treasury, and the the Reserve Bank's lower LVR lending policy, due to come into effect next month, “would not help New Zealanders get into their own homes”.

He said on an interim basis Labour's policy would be to exempt first home buyers from the LVR rules until they saw “the full effect of the capital gains tax and “kiwi-build”.

If the government cared out the housing bubble not bursting they would “bring in a capital gains tax like every other civilized country in the western world”, Mr Cunliffe said.

The Labour leader said there was a lot of “murk” around Nick Smith's involvement in a shortened DoC submission on the Tukituki Dam.

“He is dancing on the head of a pin and I think there is a lot more to come out about this story.”

Mr Cunliffe said Dr Smith didn't want DoC submitting on nitrate levels because it would be against "interests behind the dam”.

He said he understood that an official had resigned over the incident.

Labour's Dunedin South MP Clare Curren did not lose her information, portfolios because of tweets posted during the Labour leadership campaign. Mr Cunliffe said she was capable of working her way back up.

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