ACT's Housing spokesperson Dr Muriel Newman said today " Labour's Housing policy spells disaster for the countryÆs struggling families."

ôLabours housing policy 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 more state houses every year, is another example of Labour'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?

"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.

"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.

"The Government remains the country's biggest Real Estate Agent, with one in five houses under its rental control. 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.

"Labour and the Alliance should learn by their mistakes, income related rents didnÆt work last time and they wonÆt work again now. If LabourÆs policies are introduced, we can expect the return of beneficiaries and low-income earners going to extraordinary lengths in order to qualify for a state house." Said Dr Muriel Newman.

ENDS

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