Thursday, 21 June 2007

United Future sceptical of 'ring-fencing' tax proposal

United Future leader Peter Dunne says his party remains far from convinced that changing the tax laws around the ownership of rental properties will have the desired effect of taking the heat out of the housing market.

"I am concerned that the current debate, which seems to involve tossing ideas in the air and seeing who salutes, will only lead to a kneejerk solution that will quickly unravel and cause us to go through the whole debate again.

"Two Parliamentary committees are currently holding extensive inquiries into the affordability of housing and the operation of monetary policy by the Reserve Bank.

"It seems to me those inquiries hold out more hope of coming up with proposals that will provide enduring solutions to the problems we face and that will attract majority support in Parliament

"Changing the tax rules on 200,000 property investors is no guarantee that the housing market will cool down - indeed, experts in the field are predicting that it will merely drive the price of houses down and the cost of renting up, surely a result we don't want," said Mr Dunne.

ENDS

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