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


KiwiBuild spending mostly crowds out what would be built

KiwiBuild spending mostly crowds out what would be built anyway

14 DECEMBER 2017

By the next election the Government will have spent two billion dollars on KiwiBuild, but only a little more than a third of that will have translated into additional houses according to Treasury analysis pointed to by the Taxpayers’ Union.

New Zealand Taxpayers’ Union Economist Joe Ascroft, says, “Treasury has highlighted capacity constraints that means only 35% of the two billion dollars being spent by the Government will translate into additional housing by the next election.”

“When there are only so many builders, and so much land, big Government building schemes just take away from private investment and construction. That’s exactly what we’ll see for at least the next three to four years.”

“While residential investment is expected to increase over the long term, that relies on a number of assumptions, including increased work visas for foreign workers, and the use of foreign firms to encourage greater competition. That alone is totally inconsistent with Treasury’s assumption used for its financial modelling that net migration will reduce from 75,000 per year down to 15,000 by 2022.”

“Reform to the RMA, and freeing up contrants on bulding, would led to a much larger increase in housing investment, and wouldn’t cost anywhere the two billion dollars Labour have budgeted for KiwiBuild. Better for the Government to get out of the way, rather than throw $2 billion of our money into a fund which will raise the costs of construction for such little gain.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Now-Former Cyclone: States of Emergency Declared

A state of emergency has been declared in Buller, Greymouth and Christchurch, with fears some homes are at a high risk of flooding over the next day.

High tides overnight were likely to bring large waves to Kaikōura and Christchurch about 9pm, and to Taranaki, Kāpiti and Nelson about 2am.

The latest severe weather update has upgraded watches for heavy rain in Christchurch, Banks Peninsula and North Otago to full warnings...More>>


Kauri Protection: Waitākere Forest Closure Proposed

At the 20 February meeting of the Environment and Community Committee, the council proposed to close the forested areas of the Waitākere Ranges Regional Park, with some exceptions, by 1 May 2018. More>>


'Hit And Run' Raid: NZDF Had Reports Of Civilian Casualties

The NZDF received intelligence updates within one or two days of the August 2010 SAS raid in Afghanistan that reported civilian casualties, including the death of a child, new OIA documents reveal... it appears they did not bother to investigate nor made any effort to help the victims. More>>


Christchurch Public Meeting: Complete U-Turn By Labour And NZ First On TPP

The TPP might have been re-branded as the CPTPP but it's still the same bad deal says Professor Jane Kelsey, New Zealand's expert on international economic regulation. More>>


Commerce, Etc: Thicker Bright Line For Real Estate

Revenue Minister Stuart Nash has confirmed the bright-line test on residential property sales will be extended from two years to five years in legislation currently making its way through Parliament.More>>


Prison Inspections: Reports on Manawatu and Paremoremo Released

The Office of the Inspectorate today released reports into Manawatu Prison and Auckland Prison (Paremoremo), the first two resulting from a programme of inspections of New Zealand prisons. More>>

Whistle Blowers: Government To Review Law On Protection

Work has begun on a review of the Protected Disclosures Act 2000, Minister of State Services Chris Hipkins said today. More>>





Featured InfoPages