Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Government Must Rein In The Reserve Bank Now

National is calling on the Government to temper the Reserve Bank’s latest inflammation of the property market by sending a letter of expectation to Adrian Orr immediately.

The Government should be mandating the Reserve Bank to ensure its funding for lending scheme is targeted at the more productive parts of our economy, not the housing market.

“The Reserve Bank’s funding for lending scheme could pump up to $28 billion into the banking system but there would be no requirement for that money to flow into productive parts of the economy,” National’s Shadow Treasurer Andrew Bayly says.

“Instead, it’s likely the new funding will flow straight into the already unaffordable housing market, when it could and should go towards new house builds, local businesses and our agriculture and horticulture sectors.

“After the latest Reserve Bank scheme was announced, economists forecasted that house prices could rise by 15 per cent over the next year.

“Our view is that the Reserve Bank can, and should, be requiring banks to direct this new funding into productive parts of the economy, particularly business lending. We have seen this happen in Australia.

“If the Government takes the housing situation seriously it will send a letter of expectation to Adrian Orr immediately, before the new scheme is implemented in December.

The current runaway house price situation is not sustainable, Mr Bayly says. Since March, housing lending has increased by $8.7 billion while business lending has fallen by $6.1 billion. There has been no new funding to support agriculture and horticulture, and little handed out to developers to build new houses.

“The worrying thing is that the Reserve Bank is only about a third of the way through its quantitative easing programme, so the problem is not going away.

“Unless something is done, house prices and the value of other assets will continue to sky-rocket as investors look for higher yields than they can get at their local banks.

“This is bad for first-home buyers. It will make it harder for them to compete with investors and raises the prospect of an asset price bubble pop when things eventually return to normal.

“While we support the independence of the Reserve Bank, we believe the Government can no longer afford to cross its fingers and hope for it to do the right thing.

“The Government needs to take this situation seriously and tell the Reserve Bank to stop throwing more and more printed money at our overpriced housing market.

“The fundamental problem with the housing market hasn’t changed: a lack of supply. The Reserve Bank’s actions have only added fuel to the fire.

“As well as requiring the Reserve Bank to target its new scheme towards business lending, the Government must urgently address the supply constraints by replacing the Resource Management Act, freeing up land, and getting more houses built.”

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On What We Could Do For Hong Kong, If Only We Dared

There has been something repulsive about PM Jacinda Ardern’s assurances that our joint 5 Eyes criticism of China’s actions over Hong Kong – and China’s harsh reaction – are all well understood on both sides. According to Ardern, it has been a case of us saying the sort of things we’ve said before, them acknowledging our need to do so, and then them responding much as we would expect them to do. All neat and tidy. Frankly, if all of this is merely virtue signalling on our part, and huffy declarations of independence on their part, then what’s the point of this diplomatic dance..? More>>

 

Grant Robertson: Government To Review Housing Settings

New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus More>>

ALSO:

Law Commission: Recommends New DNA Laws For Criminal Investigations

Te Aka Matua o te Ture | Law Commission today released a report that recommends a new, comprehensive regime to control how DNA is obtained, used and retained for criminal investigations. The report has revealed significant gaps in the operation ... More>>

ALSO:

National: Leader’s Speech At Annual General Meeting

Good morning delegates. It’s an absolute privilege to be speaking as your leader. I’d like to acknowledge the party president, regional chairs, board members, National Party staff, our MPs, our candidates, and most importantly, you – the delegates, ... More>>

ALSO:


Economy: Crown Accounts Reflect Govt’s Careful Economic Management

The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance ... More>>

ALSO:

Green Party: Announce Portfolio Reshuffle With Talented And Energised Caucus Team

“The Green Party caucus offers a breadth of talent and energy to the Parliament this term. In ten MPs you have a small business owner, a human rights lawyer, an academic, a climate negotiator, a transport planner, and so much more”, Green Party ... More>>

ALSO:

APEC: New Zealand Ready To Host Virtually

Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While ... More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels