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

Gordon Campbell: On The Budget

It may seem like Oliver to be so bold as to ask the Finance Minister for more gruel – but what the Dickens, Steven Joyce… is this Budget really as good as it gets?

Supposedly, the public was going to receive significant rewards – an election year lolly scramble no less – for the eight years of belt tightening that they’ve endured, and for the rundown of essential public services.

Well, what Budget 2017 delivered instead in Education and in Health were allocations barely sufficient to maintain the current levels of service delivery More>>

Scoop Full Coverage: of Budget Announcements & Reaction
Latest: Scoop Search

 
 

Auditor-General Stands Down For Investigation: Gordon Campbell On (Not) Taking Responsibility

So Martin Matthews, our current Auditor-General wishes he could have detected “earlier” the fraud that occurred on his watch at the Ministry of Transport. Hmmm. But he could have detected it earlier, surely? That’s the point. More>>

ALSO:

NGOs Pleased: Govt To Halt Collection Of Client Data

Brenda Pilott, the chair of ComVoices and national manager of Social Service Providers Aotearoa, congratulates the government on its decision to call a halt to the collection of individual client data until the concerns of not-for-profit service providers have been worked through. More>>

ALSO:

Gosh: Blasphemy Law Repeal Struck Down

Chris Hipkins, the MP who tabled a Supplementary Order Paper to add our Blasphemy Law to the Statutes Repeal Bill, said this was a "sad day for freedom of speech, tolerance, and leadership". More>>

ALSO:

Gordon Campbell: On The Navy’s Dealings With Fat Leonard, And Twin Peaks

At an official level, our “she’ll be right” attitude routinely spills over into a keen resentment of anyone who suggests the outcomes may be less than satisfactory… The Navy has now gone one step beyond. It won’t even ask itself whether it did a good job. More>>

ALSO:

NZDF: Fifth Rotation Of Troops Heads To Iraq

The fifth rotation of New Zealand Defence Force troops left today for a six-month mission training Iraqi soldiers. More>>

ALSO:

Gordon Campbell: On The Demonising Of Iran

Will New Zealand still be willing to pursue its recent trade overtures to Iran, now that US President Donald Trump has used his speech in Riyadh to single out Iran as the main source of terrorism and instability in the Middle East? More>>

ALSO:

 
 
 
 

Opening The Election Supporters

 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election