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Alliance policy spells disaster for homeowners

Alliance policy spells disaster for homeowners

Monday 4th Oct 1999
Muriel Newman
Media Release -- Social Welfare

ACT's Housing spokesperson Dr Muriel Newman said today " the Alliance's housing policy spells disaster for the country's home owners and low income earners."

"The Alliance housing policy is a death knell for young first homeowners, and will drag down property values and destabilise this country's housing market."

"The hardest hit will be those low income families who have struggled and saved to buy their own state house."

"The offer to build another one thousand state houses every year, is another example of the Alliance's extreme and ill-thought out policies. It may help the one thousand low income earners lucky enough to get a state house but what about the rest?"

"If someone is lucky enough to qualify for a state house, under Labour and the Alliance they will be able to rent the property for 25% of their income. Meanwhile their neighbour next door, who earns the same income but either wasn't lucky enough to get a state house or didn't have the right contacts, will have to pay much more."

"Owning your own home is the kiwi dream, but the Government remains the country's biggest Real Estate Agent with 60,500 state houses. The sooner the government moves out of home ownership the better - with the accommodation supplement to assist low income earners it doesn't matter whether the houses are owned by the private sector or the state. The policy is fair for all low income earners."

"Low income earners, deserve equity and choice, not to be trapped by Labour and the Alliance's policies. We have seen the effects of income related rents before with the spiralling growth of state house ghettos - Labour and the Alliance should learn by their mistakes -not repeat them." said Dr Muriel Newman.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.


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