Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Decisive action on red tape is the answer to housing issue

Decisive action on red tape – not KiwiBuild – is the answer to New Zealand’s housing affordability problem

Wellington (22 January 2019): Decisive government action to free up the supply of land for housing and to reduce construction costs across the board is the only viable remedy for New Zealand’s housing affordability problem.

KiwiBuild – the government programme to build or deliver 100,000 homes in 10 years ¬– is a massive distraction from fixing the housing problem, according to a new research report,KiwiBuild: Twyford’s Tar Baby, released today by The New Zealand Initiative.

“The simple fact is that government does not need to commission new houses to increase the supply of land for housing or to reduce regulatory constructions costs”, said Dr Bryce Wilkinson, senior research fellow and author of the report.

The report explains why it makes no sense for taxpayers to subsidise KiwiBuild homes, but neither does it make sense for government to commission houses on an unsubsidised basis. The former is embarrassing on equity grounds, as was seen with KiwiBuild in Papakura. The latter risks the embarrassment of unsold homes, as with KiwiBuild in Wanaka.

Regulatory red tape is behind the astronomical property price inflation in Auckland.

Median section prices in Auckland reportedly rose 903% between 1993 and 2018. Artificial constraints on land supply are a major factor. Research has found that land inside the artificial Auckland City boundary was around 10 times more expensive than land just outside it.

Adding insult to injury, construction costs per square metre rose by 212% between 1993 and 2018 in Auckland, more than twice as fast as the consumer price index. Council regulations have reportedly added between $32,000 and $60,000 to the cost of constructing a dwelling in a subdivision.

“Government can and should take action to reduce such cost excesses across the board, independently of KiwiBuild”, said Dr Wilkinson.

The report also explains why KiwiBuild cannot be expected to increase the proportion of home ownership in New Zealand materially, or the long-run housing stock.

Lacking a coherent rationale, KiwiBuild is a floundering policy.

Read more:
KiwiBuild – Twyford’s Tar Baby is now available on our website.


ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On National’s Weekend Of Doing Wheelies, Going Nowhere

Evidently, a year is not a long time in politics. The National Party for example, has just chosen to end this year much as it began it: riven by factions, leaking like a sieve, saddled with a party leader unlikely to lead them into election 2023, and having just chosen to re-install Peter Goodfellow as party president, despite his reluctance to take any responsibility for the party’s dismal election performance.
In other words, National appears determined not to learn from his past mistakes... More>>

 

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:

RNZ: NZ May Become 'Florida Of South Pacific' Without Young Tourists - YHA

The country may attract only the 'old rich set' and risks becoming known as 'boring and staid' if it targets wealthy visitors, the Youth Hostels Association says. More>>

ALSO:

Government: Agreement Advanced To Purchase Up To 5 Million COVID-19 Vaccines

Hon Megan Woods Minister of Research, Science and Innovation The Government has confirmed an in-principle agreement to purchase up to 5 million COVID-19 vaccines – enough for 5 million people – from Janssen Pharmaceutica, ... 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:

Oranga Tamariki Report: Government Must Transfer Power To Māori - Children's Commissioner

The Children's Commissioner is calling for an urgent and significant transformation of Oranga Tamariki - and is telling the government to commit to a transfer of power to Māori. More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels