Parliament

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

 

Govt must act before Reserve Bank forced to

David Parker
Finance spokesperson

Phil Twyford
Housing spokesperson

4 June 2014

Govt must act before Reserve Bank forced to

The Government must take much stronger action on the housing crisis before the Reserve Bank is forced to act on its consideration of a cap on mortgage lending, says Labour’s Finance spokesperson David Parker and Housing spokesperson Phil Twyford.

“The Reserve Bank has refused to rule out capping mortgages, possibly to 4.5 times a household income, if house prices continue to skyrocket,” says Phil Twyford.

“This could mean an Auckland family on a median income subject to an 80 per cent LVR could only buy a home of around $400,000, over $200,000 less than the median price of an Auckland home.

“That would shut out many more of the first home buyers who weren’t already locked out by LVRs, creating a generation of renters.

“Not only would it be the end of the home ownership dream it would be a speculator’s nirvana.

“Increasingly under National the only people who can afford to buy homes are the already well-off, speculators and those with wealthy parents.

“If the Reserve Bank chooses cap mortgage rates it will be the Government’s fault because it has not taken the actions necessary to address both speculator-driven demand and the shortage of affordable houses.

“This is exactly what happened with LVRs. The Reserve Bank was forced into a corner by the Government’s inaction. It’s déjà vu all over again,” says Phil Twyford.

“National must stop denying the housing crisis and pretending that its housing accord, which has yet to produce a single house, will solve anything,” says David Parker

“Labour has a comprehensive plan to make housing more affordable. We will build 100,000 affordable homes, clamp down on overseas and domestic speculators and lower interest rates through our Reserve Bank upgrade.

“National’s refusal to deal with housing, capital gains, universal KiwiSaver, migration effects and monetary policy is hurting first home buyers and the wider economy.

“Only Labour can solve the housing crisis,” says David Parker.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding.

“Civil Defence Emergency Management Groups have acted proactively and decisively to keep people and property out of harm’s way,” says Mr Guy. More>>

 

PM's Press Conference: Boris, Infrastructure, Immigration, Drugs

Prime Minister Bill English opened this week's post-cabinet press conference by revisiting that day's announcement of 'Crown Infrastructure Partners'... More>>

Employers Pleased: Reports Of Govt Backdown On Low-Wage Immigration

MEA: We are pleased to hear that the Government is planning to review incoming immigration changes with a specific focus on how they will affect the regions. Effectively addressing skills shortages in manufacturing and other sectors needs to remain a core part of our immigration system ... More>>

ALSO:

Gordon Campbell: On The Ch-Ch-Changes At IRD

Job cuts aren’t happening at the IRD, exactly. Instead, there’s apparently a ‘transformation’ in store, and jobs won’t be axed ; no, they will be ‘transformed’ before our eyes into… non-jobs, if you happen to be among the unlucky legion of 1,900 who are being lined up for transformation... More>>

ALSO:

Christchurch Mental Health: Hospital Too 'Awful' For Reviewers To Visit

Jonathan Coleman has to stop the stalling over a new building for mental health services in Christchurch to replace the quake damaged Princess Margaret Hospital, says Labour’s Health spokesperson David Clark... More>>

ALSO:

Greens Call For Govt Action: Children Sick Because Of NZ Housing

The Royal Australasian College of Physicians president-elect said today that children with preventable respiratory illnesses are being re-admitted to hospital because they're being sent back to cold, damp homes. More>>

ALSO:

Less Tax Cut, More Spending: Labour Launches Fiscal Plan

“Labour will invest $8 billion more in health, $4 billion more in education and $5 billion more for Kiwi families through Working for Families, Best Start and the Winter Energy Payment than the Budget 2017 projections for the forecast period.” More>>

ALSO:

Gordon Campbell: On The Greens’ Room For Political Pragmatism

The Greens here are currently being criticized by the commentariat for not making the same kind of pragmatic choices that sunk the Democrats in Australia. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog