Auckland Homeowners benefit at the expense of other New Zealanders

Auckland homeowners profiting from booming house prices are really benefitting at the expense of the rest of New Zealand, according to the New Economics Party.

Spokesperson Deirdre Kent said “If all the private landowners and private banks had reimbursed the public for their windfall gains from rising Auckland land values over the last few years, the Auckland rail loop would have been paid for.

“Or it could have paid for the railway be electrified from Waikanae to Levin or to fix the Gisborne to Napier railway.” She said rising house prices are always due to rising land values. Land values rise because of the action of the community in providing hospitals, transport, roads, schools, sewage, water, businesses, shops and parks. So landowners should pay the public back regularly for this privilege.

“While we allow the private capture of rising land values, we can’t help but get a widening gap between those who own good real estate and the rest of us. The Auckland housing bubble where obscene profits are to be made from selling a house is affecting every New Zealander who pays tax to line the pockets of lucky private landowners and banks. Moreover the relentless rise in the supply of bank credit makes all of our money less valuable.

A regular land fee should be paid to hold land while taxes on labour and sales should go.

ENDS

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