Why is it left to the Reserve Bank to take (poorly targeted, belated) action on the property price bubble? Yesterday’s press release from The Greens was spot on:
Reserve Bank forced to do AWOL Govt’s job on housing
The Reserve Bank is being forced into acting on the Auckland housing crisis because the Government is refusing to, the Green Party said today.
“It’s becoming increasingly obvious that it’s the Reserve Bank, and not John Key and his Government, who has the best interests of Aucklanders at heart when it comes to home ownership,” Green Party Co-leader Dr Russel Norman said today.
“This Government refuses to do anything meaningful to solve the Auckland housing crisis, so the Reserve Bank has to step in and try to do the Government’s job with the limited tools available to the Bank.
“Last month, the Reserve Bank called on the Government to close the tax loopholes that allow property speculators to run rampant in Auckland – that is, introduce a capital gains tax on investment property. The Government rejected those calls.
“Today, the Reserve Bank is taking action to try to curb rampant property speculation in Auckland, by restricting finance to investment property buyers in Auckland. The Government must follow suit by using the tools at its disposal.
Today Bill English welcomed the Reserve Bank’s move. Why isn’t he leading the way? Why isn’t the government taking action? The RB has even told them how.
It’s true – this government is recklessly complacent.
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