Parliament

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

 

Key handed loaded LVR gun to Reserve Bank

Phil TWYFORD

Spokesperson for Housing

David PARKER

Spokesperson for Finance                        

16 July 2013    MEDIA STATEMENT

Key handed loaded LVR gun to Reserve Bank

John Key’s incompetent handling of the mortgage lending limits tool is set to deny thousands of Kiwis a shot at their first home, Labour’s Housing spokesperson Phil Twyford and Finance spokesperson David Parker said.

Labour understands the Reserve Bank will soon announce limits on high Loan to Value Ratio (LVR) home lending without an exemption for first home buyers.

“John Key has completely mishandled the lending limits plan from the very beginning. His negligence has handed the Reserve Bank a loaded gun of lending limits. He can't now fake surprise that it is about to pull the trigger,” said Phil Twyford.

“National is desperate to dampen the rampant Auckland housing market and at the same time is spooked by Labour’s affordable homes building plan and our tax on speculators – seen by Kiwis as an excellent plan to tame house prices.

“In May National caved in to the pressure, signing a Memorandum of Understanding with the Reserve Bank that would allow it to restrict high value mortgages. As usual John Key took a once-over-lightly approach and didn’t realise the ramifications for first home buyers.

“It wasn’t until a month later that Mr Key realised what he had done. He then tried to negotiate through the media to put pressure on Reserve Bank Governor Graeme Wheeler. But the primary purpose of the Reserve Bank is to be independent and not listen to political pressure.

“John Key’s plan has backfired. The Reserve Bank was given complete decision-making power over how to set LVRs in May. When he realised what had happened in June, Mr Key was left out of ammo and reduced to shouting from the microphone,” said Phil Twyford.

“Labour has a plan for housing. We would protect first home buyers with an interim exemption from LVRs and deal with speculators first. By building 100,000 affordable new homes in 10 years with KiwiBuild and bringing in our tax on speculators we will tame rampant house prices and keep the home ownership dream alive,” said David Parker.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Budget

It may seem like Oliver to be so bold as to ask the Finance Minister for more gruel – but what the Dickens, Steven Joyce… is this Budget really as good as it gets?

Supposedly, the public was going to receive significant rewards – an election year lolly scramble no less – for the eight years of belt tightening that they’ve endured, and for the rundown of essential public services.

Well, what Budget 2017 delivered instead in Education and in Health were allocations barely sufficient to maintain the current levels of service delivery More>>

Scoop Full Coverage: of Budget Announcements & Reaction
Latest: Scoop Search

 
 

PM's Press Conference: Two More Troops?

Prime Minister Bill English gave a summary his highlights of last week’s budget announcement... The Prime minister was asked about NATO’s request for New Zealand to send two more personnel to Afghanistan and whether or not we will send them. More>>

ALSO:

Carer Settlement: Threat Of Staff Exodus In Mental Health

As a result of the recent pay rise awarded to their aged care and disability sector colleagues, many staff in non-government mental health and addiction organisations are considering leaving to join these workforces. More>>

ALSO:

Climate Policy: New Zealand Set To Blow Its Carbon Budget By 27%

The Government’s Greenhouse Gas Inventory shows New Zealand is set to release 647.5 million tonnes of carbon emissions between 2013 and 2020 – 137 million tonnes more than we are allowed under the Kyoto Protocol. More>>

ALSO:

Earlier:

Christchurch Considers Cathedral, Stadium: Cathedral Working Group Report Released

“About half of Christchurch wants to see the cathedral reinstated, the other half wants something new and more modern, but really, everyone just needs a decision." More>>

ALSO:

Auditor-General Stands Down For Investigation: Gordon Campbell On (Not) Taking Responsibility

So Martin Matthews, our current Auditor-General wishes he could have detected “earlier” the fraud that occurred on his watch at the Ministry of Transport. Hmmm. But he could have detected it earlier, surely? That’s the point. More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election