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

 

PARLIAMENT TODAY:

Arming Police: Frontline Police To Routinely Carry Tasers

"In making the decision, the Police executive has considered almost five years worth of 'use of force' data… It consistently shows that the Taser is one of the least injury-causing tactical options available when compared with other options, with a subject injury rate of just over one per cent for all deployments." More>>

ALSO:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

"Gutted" Safety Bill: Time To Listen To Workplace Victims’ Families

Labour has listened to the families of whose loved ones have been killed at work and calls on other political parties to back its proposals to make workplaces safer and prevent unnecessary deaths on the job. More>>

ALSO:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Board Appointments: Some Minister Appoint Less The 3 In 10 Women

“It’s 2015 not 1915: Ministers who appoint less than 3 in 10 women to their boards must do better, they have no excuse but to do better,” said Dr Blue. More>>

Gordon Campbell: On The 1990s Retro Proposals For Our Health System

As we learned yesterday, the reviews propose that the democratically elected representation on DHBs should be reduced, such that community wishes will be able to be over-ridden by political appointees. In today’s revelations, the reviews also propose a return to the destructive competitive health model of the 1990s. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news