Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Cosgrove Urges Restraint In Government Spending

Clayton Cosgrove Media Statement
Member of Parliament for Waimakariri


Falling median property prices and rising interest rates are putting some homeowners at risk of negative equity if the trend is fuelled by excessive inflationary pressures says Waimakariri MP, Clayton Cosgrove.

The best short term help the Government could offer is to stick to the restrained spending plans they had already developed and ignore the “wish lists” flooding in from state servants.

“The best thing we can do for home owners at present is not give the banks any more excuses to raise their interest rates,” said Mr Cosgrove.

The recent trend for falling median property prices coupled with rising interest rates meant that highly geared homeowners were at risk of finding their slender equity in their homes reversed into negative equity.

The median house price in the Canterbury region fell in December to $140,000 compared to $143,000 recorded in December 1998. The Canterbury fall reflected a national trend for declining median house prices.

Mr Cosgrove, who sits on Parliament’s powerful Finance and Expenditure Select Committee said that the pressure for major spending increases was coming from government departments who were putting forward ‘best case” spending proposals as part of the traditional testing of a new Government by their bureaucracy.

“Frankly, there seems to be quite a few Sir Humphries under the delusion that its Christmas for all their pet schemes and aspirations,” said Mr Cosgrove.

After years of ritual under-funding and spending cuts under National-led governments the temptation to try and repair the damage quickly would prove enormous, but had to be withstood. New Zealanders still had a tendency to expect levels of equity appreciation on their homes that were only attainable back in the days of high inflation.

Mr Cosgrove said he was particularly concerned for the new homeowners in Waimakariri where building consents had turned out to outstrip projections last year.

For new homeowners the slight movements in interest rates lately had an impact that people in established homes could not always appreciate.


For further information contact:
Clayton Cosgrove
MP for Waimakariri (04) 470 6593
(03) 327 7737
(025) 829 562

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them.

Finally, yesterday’s announcement by the Ardern government that a new state agency will be set up to assess and plan the manned re-entry to the mine (on a set timetable) goes a long way to meeting the families’ remaining request: that they be enabled, if at all possible, to bury their loved ones. More>>


Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>


Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>


Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>


Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>


Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>





Featured InfoPages

Opening the Election