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

 

PARLIAMENT TODAY:

Royals: The Prince Of Wales And Duchess Of Cornwall To Visit

Prime Minister John Key welcomes today’s announcement that the Prince of Wales and The Duchess of Cornwall will visit New Zealand in November. This will be the second joint visit for Their Royal Highnesses to New Zealand. More>>

ALSO:

Tracey Martin Replaced: Ron Mark Is New New Zealand First Deputy Leader

Clayton Mitchell was the successful candidate for the Associate Whip position. Winston Peters was re-elected as Leader by the Caucus. Ron Mark was elected as the Deputy Leader with effect from 10am, Friday, 3rd July. More>>

ALSO:

Rebuild Rebrand: "Regenerate Christchurch" To Replace CERA

The regeneration of Christchurch will be the city’s focus for the next five years as local leadership progressively takes control of the rebuild, Canterbury Earthquake Recovery Minister Gerry Brownlee says. More>>

ALSO:

Nauru: Scholars Urge Minister To Act On Deteriorating Democracy

“Since the 2013 election in Nauru, there has been a series of disturbing developments on the islands that indicate a severe deterioration in the state of its parliamentary democracy and in the rule of law,” say the scholars. More>>

ALSO:

Foreign Affairs: NZ Begins Presidency Of UN Security Council

Prime Minister John Key has welcomed the start of New Zealand’s month-long Presidency of the United Nations Security Council in New York. More>>

ALSO:

Labour: Cash For Charter Schools, Mould For State Schools

“Recently released financial statements show the Whangarei charter school He Puna Marama received $3.9 million in government funding to the end of last year. Yet their audited accounts show they only spent $1.4 million on education, leaving almost $2.5 million over two years unaccounted for." More>>

ALSO:

Kiwirail Plans Shift From Electric: National Urged Not To Take Backwards Step

The National Government shouldn’t drag New Zealand backwards by replacing its climate friendly electric trains with carbon-polluting diesel trains, the Green Party said today. More>>

ALSO:

Capital Connection:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news