MERIT IN LABOUR HOUSING PLAN

Affordable Auckland Mayoral and Albany candidate Stephen Berry finds the release of Labour’s policy to make housing cheaper through reforming planning rules refreshing saying, “When one looks passed the covert racism and socialist public works program, there are a few sparks of merit.”

Labour housing spokesman Phil Twyford stated in a press release on Saturday, "Labour will free up density and height controls to allow more medium density housing and reform the use of urban growth boundaries so they don’t drive up section costs. This will curb land bankers and speculators.”

“The language used by Labour in this press release mirrors my own proposals for arresting housing hyper-inflation by streamlining consents processes, abolishing the urban limit and increasing zoning flexibility through respecting private property rights rather than bankrupt central planning. If they are true to their word then they have outflanked the National party by supporting market-led solutions to the housing shortage.”

Stephen Berry also believes Labour’s plan for funding new infrastructure to be sensible. “It is perfectly reasonable for local authorities to borrow to fund new infrastructure if it is going to be paid for through increased rates revenue which results from targeting rates on those who are going to use the infrastructure.”

However there are other features of Labour’s housing policy that Mr. Berry finds abhorrent. “I wholeheartedly oppose Labour’s racist scapegoating of foreigners for speculator behaviour in the market. Speculation is a symptom of the distortionary effects over-regulation of the market has on participant behaviour. It is not the cause of the problem.”

“Secondly Labour’s plan for the state to build 100,000 homes will be disastrous for the country. The Special Housing Accord band-aid is already proving inadequate because it still relies on contral planners earmarking projects for special treatment and retains too many burdens that put off developers, such as the requirement that a proportion of homes be priced in the ‘affordable’ range. As a result only 102 homes are known by council officials to have been built; a tiny fraction of the 39000 target. Labour’s socialist public works plan would result in poor quality slums produced over cost and behind schedule.”

“Auckland’s housing issues are the result of regulatory distortions in the market. Imposing new costs and regulations to deal with that distortion will only exacerbate the problems.”

ENDS

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