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

Greens: Russel Norman To Stand Down As Co-Leader

Green Party Co-leader Dr Russel Norman has announced today that he will stand down as leader at the party’s Annual General Meeting in May. Dr Norman will remain as Co-leader and retain his finance and climate change portfolios until the AGM.

“After nearly a decade as Co-leader, now is a good time to find a new challenge for myself, and to spend more time with my family” said Dr Norman.

“This is my ninth year as Co-leader and I think it’s time for a change. Now is a good time for new leadership for the Party. My replacement will start from a strengthened base and will have a full parliamentary term to establish himself in the role and take the Greens into government in 2017." More>>

 

Gordon Campbell: On The Eleanor Catton Rumpus

If anyone was in doubt about the accuracy of the comments made in India by Eleanor Catton, the reaction from some quarters here at home has gone a long way to proving her point… More>>

ALSO:

More Rent Assistance, Less State-Owned Housing: John Key Speech - Next Steps In Social Housing

"We are going to ensure that more people get into social housing over the next three years, whether that is run by Housing New Zealand or a community provider. The social housing budget provides for around 62,000 income-related rent subsidies a year. We are committed to increasing that to around 65,000 subsidies by 2017/18, which will cost an extra $40 million a year." More>>

ALSO:

The Future Of Work: Andrew Little - State Of The Nation 2015

In 2005 when I led the EPMU we worked together with Air New Zealand to find a way to keep engineering jobs that were heading overseas. A lot of these workers were people I’d known for years and they were facing not just losing their jobs but not being able to find the kind of work they do without going overseas. A lot of people were facing personal and financial upheaval.... More>>

ALSO:

Gordon Campbell: On The Sabin Case, The Pressures On Greece And (Songs About) Coyotes

Mike Sabin is a National MP, and the current chairman of Parliament’s law and order committee. Yet reportedly, he is being investigated by the Police over an assault complaint... However, the PM will not comment on any aspect of the story. More>>

ALSO:

Houses, ISIS, King (& Catton): PM Post-Cabinet Press Conference

The Prime Minister met with reporters to discuss: • Social housing, the Auckland housing market • The prospect of joining international forces to combat ISIS • David Bain’s compensation • The lowering of the flag for the King of Saudi Arabia's death ... More>>

ALSO:

Gordon Campbell: On Tomorrow’s Speeches By John Key And Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the RMA. Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing… . More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news