$360 million better spent on fidget spinners

The Government shouldn’t require advice from officials to realise pumping $360 million of taxpayer money a year into the rental market will drive up prices, says ACT Leader David Seymour.

“It’s just basic economics. Without a corresponding increase in supply, increasing subsidies just gives renters the chance to bid up prices even higher.

“It’s like turning up to an auction and giving everyone a hundred grand. The seller, or in this case the landlord, laughs all the way to the bank.

“And by making housing a more profitable investment, actual purchase prices will go up too. It’s an own goal for a Government that should be focused on cutting regulation to get house-building up to speed with demand.

“Instead, the Government is spending money to do harm. The Government would literally be better off spending the $360 million on fidget spinners for every New Zealander.

“The Government is increasingly turning to handouts as the solution to every problem. A stronger ACT will whip National back into shape.”

ENDS

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