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

 

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news