Parliament

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

 

Housing initiatives to support growing economy

Housing initiatives to support growing economy

Housing initiatives in Budget 2014 will lower the cost of housing, improve access to social housing for vulnerable families, and support the growing economy, Finance Minister Bill English says.

The Budget’s housing package temporarily removes tariffs and duties on building materials covering 90 per cent of a new home’s construction, provides new funding to increase the community housing sector, and increases administrative support for social housing tenants.

“This builds on the Government’s previous housing reforms to deliver more competition in the supply of building materials and to deliver social housing that is in the right place and is the right type to meet the needs of families and individuals,” Mr English says.

“We saw the damage done by soaring house prices in the 2000s, when house prices doubled. That led to mortgage interest rates of over 10 per cent, creating a substantial risk to the economy and adding to spending pressures on the Government.

“Rising house prices hit those on lower incomes the hardest, worsening inequality.”

The Government’s housing affordability programme is increasing housing supply by freeing up land, reducing infrastructure costs, lowering the cost of materials, and cutting the time and cost of resource and building consents.

Improvements in housing supply complement the ongoing social housing reform programme.

This programme extends access to income-related rents to the community housing sector, introduces regulation of standards on community providers, and shifts social housing allocation to the Ministry of Social Development to deliver a one-stop shop for those in need.

Budget 2014 housing initiatives include:

Immediate suspension of anti-dumping duties through Budget-night legislation of duties on plasterboard, wire nails and reinforcing steel bar for three years. From 1 July a zero concessionary tariff, to be reviewed after five years, covering around 90 per cent of the materials in a new home and expected to save around $3,500 on the construction of a standard home.

$64.3 million new operating funding and $16.4 million new capital funding for social housing needs assessment functions at the Ministry for Social Development.

$30 million boost from 2015/16 to the Social Housing Fund to help increase the size of the community housing sector.

$8 million to support higher social housing tenant mobility.

$5.2 million new operating funding and $1.8 million new capital funding for reviewable tenancies to ensure reviews are thorough and careful.

$75 million for a Christchurch housing contingency.

Social housing initiatives total $107.5 million operating funding over four years and $18.2 million capital. Elimination of duties and tariffs will reduce Crown revenue by $27.8 million over five years.

These initiatives build on previous housing reforms and initiatives including:

Signing housing accords with councils in Auckland and Christchurch, with the latter subject to consultation.

Reforming the Local Government Act to limit development contributions for funding infrastructure.

Increasing support for those on low and moderate incomes to get into their first homes by through increased eligibility for KiwiSaver first home deposit subsides and trebling funding for Welcome Home Loans.

Launching an inquiry into building materials costs that led to the elimination of tariffs and duties.

“We see considerable economic benefits from an immediate reduction in the cost of construction at a time when housing construction is taking off,” Mr English says.

“That is in addition to the social benefits of helping hundreds more high-need families and individuals into warm and dry homes.”

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Fallout From The Barclay Tape

This is hardly a case of cleaning out your desk and being turfed out onto the pavement.

As others have pointed out, the disgraced Clutha-Southland MP will remain on the public payroll for three months until the election, and for three months afterwards. More>>

 

Ombudsman: Canterbury Schools Reorganisation Mishandled

An investigation into the Canterbury schools reorganisation after the February 2011 earthquakes has found significant gaps and flaws in the Ministry’s engagement and communications with schools and communities. More>>

ALSO:

Law Commission: Contempt Report "Protects Right To Fair Trial"

The proposed Act limits what news media representatives and bloggers can report on court proceedings, but it also makes clearer than the current law where the line is between contempt and freedom of expression. More>>

ALSO:

Gordon Campbell: On Our Refugee Intake (And Uber’s Woes)

On figures released this week, there are currently 65.6 million people worldwide who have been displaced from their homes by war, famine or other external causes… More>>

ALSO:

IGIS Report: GCSB Support For Groser WTO Bid Not Illegal

“The inquiry has found that the GCSB did not act unlawfully or improperly in providing assistance to the New Zealand government campaign”, Ms Gwyn said. More>>

ALSO:

PM's Press Conference: Pike And Houses

There were questions on Pike River mine re-entry after new video from inside the drift was released over the weekend. English maintained a human effort would not be feasible irrespective of any future coalition demands from NZ First. He said the government would continue to work with families on non-manned re-entry. More>>

ALSO:

Flogging A Dead Horse: NZ First Seeks New s59 Referendum

10 years on from the so called “anti-smacking” law - NZ First calls for a binding referendum. NZ First MP Tracey Martin told TVNZ’s Q+A programme that the law change has had a “chilling effect” on NZ parents including herself. More>>

ALSO:

Always Interesting: Internet Party Has New Leader

The Internet Party has a new leader: Suzie Dawson... She currently resides in Moscow, Russia, where she has applied for temporary asylum due to severe persecution she reports being subjected to by those whose corruption she worked to expose.More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog
More RSS News Alerts