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.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Hager Revelations: Inquiry Into NZSIS Release Of Goff Docs

The Inspector-General of Intelligence and Security (IGIS), Cheryl Gwyn, announced today that she would be instituting an inquiry concerning allegations that the New Zealand Security Intelligence Service (NZSIS) might have released official information to Mr Cameron Slater, regarding briefings provided to the then Leader of the Opposition, for political purposes...

“I am satisfied there is a sufficient public interest justifying the commencement of an own-motion inquiry into the substance of the issues raised with my Office,” said Ms Gwyn. More>>

 

Parliament Today:

Fish Pun Warning: By Hoki! It’s Labour’s Fisheries Policy

A Labour Government will protect the iconic Kiwi tradition of fishing by improving access to the coast, protecting the rights of recreational fishers and reviewing snapper restrictions, Labour’s Fisheries spokesperson Damien O’Connor says. More>>

ALSO:

It's Official: Governor General Gives Direction To Conduct Election

The Governor General has signed the writ directing the Electoral Commission to conduct the General Election on 20 September 2014. This is the formal authority to run the 2014 election, and enables candidate nominations to open tomorrow Thursday 21 August 2014. More>>

Gordon Campbell: No More Mr Nice Guy

When future historians seek to identify the exact moment when the prime ministerial career of John Key hit the downward slope, they may well point to Key’s interview yesterday with Guyon Espiner on RNZ’s Morning Report. More>>

ALSO:

Dirty (Politics) Weekend: Collins’ Admission Reason For Key To Act

"Despite claiming that the evidence about her in Nicky Hager's book was ‘false’ Judith Collins has now been forced to admit that she did send information about a Ministerial Services staff member to Cameron Slater for him to use in a baseless smear campaign. More>>

ALSO:

Potential Disasters: Underground Coal Fire On Denniston Plateau

Forest & Bird says one or more coal fires have broken out beneath the Denniston Plateau, and that the Department of Conservation (DOC) must stop Bathurst Resources’ preparatory mining work going on there until the fire or fires are extinguished. More>>

ALSO:

Bikes: Nats Plan $100 Million For Urban Cycleways

Prime Minister John Key has today announced $100 million in new funding will be made available over the next four years to accelerate cycleways in urban centres. More>>

ALSO:

New Tax Bracket, Child Poverty Fund: Greens Launch Billion Dollar Plan To Reduce Child Poverty

The Green Party has launched a billion dollar package to significantly reduce child poverty in New Zealand. The details of the plan were released at the party’s campaign launch in Auckland. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news