PM’s “belief” that Kiwis can buy a home an insult

Prime Minister John Key’s comment that he “believes” low income New Zealanders could one day buy a home is an insult to Kiwis who have been priced out of the market by Government inaction on housing, the Green Party says.

John Key and Bill English were reported today to have conceded that rising house prices were contributing to inequality, but neither were prepared to take any responsibility for the fact.

“To admit that the housing crisis in Auckland is driving up inequality, while refusing to do anything about it, amounts to a fundamental failure to govern in the interests of all New Zealanders,” Green Party Co-leader Metiria Turei said.

“John Key is painfully out of touch if he thinks low and middle income Aucklanders will ever be able afford to buy a home when the price of a house is going up by $1000 a week, and the mortgage repayment on a median priced house is $830 a week*.

“Just because John Key believes people will be able to buy a home, doesn’t mean they will.

“John Key should admit that the market has failed to deliver affordable homes in Auckland, but that the Government is in a unique place to fix that by building state and affordable homes.

“The National Government’s ideological opposition to public investment in housing is holding back Auckland and driving up inequality which is hurting young New Zealanders and the economy.

“John Key should put his money where his mouth is and embark on a house building programme in Auckland, rather than glibly tell low income New Zealanders he believes they’ll be able to buy a home one day.

“A state home building programme could both house those who need a safe, warm state home, and provide a path to ownership for those priced out of the market now.

“Bricks and mortar, not empty pie-in-the-sky hopes, are what’s needed in Auckland,” Mrs Turei said.

*based on a 20% deposit and a 30 year loan at 5.95% interest rate

ENDS

© Scoop Media