“If Kāinga Ora can’t operate in the housing market without being bailed out by taxpayers, it shouldn’t be there competing against private developers,” says ACT’s Deputy Leader and Housing spokesperson Brooke van Velden.

“Finance Minister Grant Robertson has just approved almost $3 billion in new loans for the failing government agency.

“Labour is so determined to meet their housebuilding targets they’re prepared to give their agency a leg up over private developers, at the expense of Kiwis.

“No one wins in this situation. There are no extra houses being built, they’re just making it easier for Kāinga Ora to build them at greater expense to everyone.

“It’s simple, if Kāinga Ora can’t play by the same rules as private developers they shouldn’t be in the same game. At the moment Kāinga Ora is doing Kiwis a disservice by competing against private developers and first-home buyers, bidding up the price of land and homes while selling off its own.

“They can do this because they have a safety net made from taxpayer money that no other developer has. It is a distortion of the market.

“When the Government is both the regulator and a player in the market there’s a clear conflict of interest. If Kāinga Ora can’t get private backing from banks, it shouldn’t from the Government.”

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