Government has worsened a rental market nightmare

18 JANUARY 2018
FOR IMMEDIATE RELEASE

When the Government increased student living costs and allowances, it was inevitable that rental costs would be driven up says the New Zealand Taxpayers’ Union. A series of stories this week have highlighted the rental crisis in Wellington and be

Taxpayers’ Union Economist Joe Ascroft said “The policy of giving students more money each week during a rental accommodation shortage has had the effect of throwing taxpayers’ money on the fire.”

“Policies should be judged by their results, not their intentions. The intention of this policy was to help struggling students, but the result has been to pour money into the pockets of asset rich landlords.”

“It’s not just students who are paying higher rents either. Everyone in the rental market is having their income eroded by the Government’s choice to inflate prices.”

“The cost of this policy is $200 million. If this is what success looks like to the Minister of Finance, then taxpayers are in for a shock under this government.”

ENDS

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