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 Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Budget: Health Funding Must Keep Up With Need

NZNO: “The nursing team has been doing more with less for years. It’s getting to the point that we’re really worried about our colleagues, our patients, our jobs and the level of health care available for people in our country." More>>

ALSO:

Emissions Inventory: Time For The Government To Do The Right Thing

It’s time for the National Government to step up and do the right thing to reduce climate pollution as data shows New Zealand’s greenhouse gas emissions are higher than ever, the Green Party said today. More>>

ALSO:

Budget 2016: More Partnership Schools To Open

Seven new schools will join the eight Partnership Schools already open, along with further new schools opening in 2017. “The growth of this policy is a reflection of the high level of interest from educators and community leaders,” Mr Seymour says. More>>

ALSO:

No Correspondence With English: Did Brownlee Make Up Sale Of Navy Ships ‘On The Hoof?’

Having revealed that several Royal New Zealand Navy vessels have not left port in years, New Zealand First is now asking the Minister of Defence to prove he did not come up with the idea of selling HMNZS Taupo and Pukaki until the media asked him. More>>

Housing Plans: Labour- Abolish Auckland Urban Boundary
The Government should rule out any possibility of an urban growth boundary in Auckland Council’s Unitary Plan if it is serious about fixing the housing crisis. More>>
Greens - State House Solution
The Homes Not Cars policy allows Housing New Zealand to retain its dividend and, in addition, would refund its tax, to spend on the emergency building of around 450 new state houses. More>>

ALSO:

Houses And Taxes: Post-Cabinet, Pre-Budget Press Conference

The Prime Minister said that the pre-budget announcements showed that his Government is “investing in a growing economy”. He re-affirmed the National Government’s commitment to lowering personal tax rates but that any such change must fit with the fiscal reality of the time. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news