National's paper tiger housing policy

“National’s policy is designed to get the number $1 billion in the headlines, but it will not actually affect the housing market at all because councils still have to pay the money back,” says ACT Leader David Seymour.

“National are correct that infrastructure funding is holding back development, but their plan leaves councils with the same problem, just a different lender.

“If the Government wanted to let councils borrow more capital, it needn’t add a bureaucratic new fund, it could simply raise the limits on what councils can borrow themselves.

“A more substantial policy would be a rule that gives Councils a share of the GST collected from new construction projects in their territory. That would give Councils the funds and incentives to build infrastructure, without new bureaucracy.

“Sadly National is using public money to get headlines instead of making substantial policy changes proportional to the challenge of building more homes.”

ENDS

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