Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Focus on housing costs, raise wages not interest rates

Focus on housing costs, raise wages not interest rates

"The increase in the Reserve Bank's interest rate, while expected, shows little imagination and will raise mortgage costs for home owners," says CTU economist Bill Rosenberg. “The focus should be on getting housing costs down, and raising wages to make housing more affordable.”

“The Minister of Finance has been saying wages will start to rise, based on Treasury forecasts. Wage and salary earners need to get together to make sure that happens: it won’t happen by just talking about it”, Rosenberg says. “The economy can afford it: labour productivity rose 10.1 percent between 2009 and 2013 but average private sector wages rose only 0.6 percent in real terms.”

"Rising interest rates will keep the value of the dollar up, threatening jobs in exporters and firms competing with imports, and add to housing costs." Rosenberg said.

"The increase shows little recognition that inflation was lower than expected in the three months to March, nor that it is driven mainly by housing costs, apart from the January increase in tobacco taxes. CPI inflation was 0.9 percent for the year without housing and electricity costs. It was 1.5 percent with them included. And this doesn't recognise the increasing costs faced by first home buyers when looking to buy an existing home." Rosenberg said.

"Rising housing costs demand more urgent direct action. The Reserve Bank should look at other (macroprudential) policies in addition to the loan to value ratio (LVR), but better targeted. Construction of new low cost housing needs to be sped up, particularly in Auckland and Christchurch. The downward pressure on rents from state housing needs to be increased rather than reduced: pushing state house tenants out of their houses into more expensive private rentals is not going to help. Tenancy reform is needed to get better long term rentals for those who cannot or don’t want to buy.” Rosenberg said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Gordon Campbell: On Plastic Bag Activism, And Street Harassment

Amusing to see the Act Party experiencing another outbreak of young fogey-ism. What has aroused the ire of Act Leader David Seymour this time is the introduction of a Greens private members bill to the ballot process, calling for a 15 cents levy on plastic bags to reduce pollution. More>>


Unclear Weapons: US Navy Ship Cleared To Visit NZ For Navy's 75th

United States Navy ship, the USS Sampson, has been given clearance to visit New Zealand next month by Prime Minister John Key... “The process for considering the visit by the USS Sampson is the same as that used for all ships attending the International Naval Review." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news