Amy Adams - Finance

5 July 2018

KiwiBuild could see a small number of wealthy New Zealanders become even wealthier at the expense of New Zealanders on the average wage through being allowed to buy Government subsidised KiwBuild houses that probably would have been built by the private sector anyway, National’s Finance spokesperson Amy Adams says.

“Phil Twyford’s KiwiBuild promises have become such a noose around his neck he’s given up trying to target low and middle income families and thrown it all up to chance.

“As a result, KiwiBuild is likely to see some of the wealthier New Zealanders become even wealthier and those who need more support miss out completely just so Phil Twyford can ensure he gets buyers for the few homes KiwiBuild might turn out.

“Take the case of a couple of lawyers earning $180,000 today who are eligible to enter the KiwiBuild ballot. If they’re successful they’re going to amass significant wealth by living in a subsidised KiwiBuild house, seeing their incomes grow and then selling the house for a capital gain.

“That’s a great deal for them but it’s a poor one for taxpayers and those who need more support, including those who miss out completely.

“And the Housing Minister also confirmed today that even those who already own a home through a family trust will still be eligible for a first home buyer KiwiBuild house. Even from a Government which continues to put out bad and ill-thought through policies KiwiBuild stands out as one of their most poorly conceived.

“In the meantime the residential construction sector is stalling, the Government is imposing more costs on New Zealanders through more taxes and it is costing jobs by slowing our economy.

“All this is going to make it even harder for New Zealanders to get ahead, increase inequality and see billions more taxpayer dollars spent in areas where it won’t make the biggest difference.

“KiwiBuild is increasingly looking like a house of cards and support for New Zealanders who need it is getting further and further out of reach.”

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