Key’s housing plan “moronic”

Written By: - Date published: 2:51 pm, June 1st, 2016 - 25 comments
Categories: housing, john key - Tags: , ,

On RNZ today – PM’s housing plan moronic – economist

Prime Minister John Key’s suggestion that Auckland Council could be forced to free up more land for housing whenever homes became unaffordable in the city is already being criticised as misguided and unlikely to help the city’s housing woes

Mr Key hinted a price-to-income ratio could be used to force local authorities to release land for new housing if house prices climbed too far out of people’s reach.

He told Morning Report such a tool could be in the pipeline.

But critics said more land was not the answer to Auckland’s woes.

Economist Shamubeel Eaqub said using a price-to-income ratio to control house prices was “moronic”.

“I don’t think it will work. The real challenge is, how do you pay for infrastructure? And how do you make sure that the land that is being released is being built on?”

There was already plenty of land supply but not enough homes and what was required were concrete ways to encourage more homes to be built, Mr Eaqub said.

It’s moronic because it isn’t a housing policy at all, it’s a blame deflecting plan – Housing game-changer: Spreading the blame

What’s become clear is that Auckland’s problem is no longer a land supply problem, it’s a house supply problem. The Special Housing Areas have opened up over 50,000 sections according to the government, but only 1000 houses have been built. Even Auckland Council estimates six and a half years worth of land is ready to build on. What’s missing is a will (or requirement) to build, tradie capacity and, arguably, a government commitment to a mass building programme.

Instead, what we’ve got from National seems to be an admission any fix on Auckland house prices is years away and what matters to them now is spreading the blame.

Blaming the council doesn’t build any houses and doesn’t get any families off the streets.

25 comments on “Key’s housing plan “moronic””

  1. Lanthanide 1

    When the council releases a block of land to a developer, charge the first years rates at the normal amount.

    2nd years rates are double, if no house is built or no active development underway. 3rd years rates are triple. 4th years rates are 4x, etc.

    Pretty quickly it becomes uneconomic to land bank.

    If linear scaling isn’t enough, use quadratic: double rates, then quadruple, then octuple, then hexidecituple etc.

    • Rocco Siffredi 1.1

      That’ll have some interesting unintended consequences…..

    • AsleepWhileWalking 1.2

      Great idea.

      I’d like to see the government actively reclaiming houses that remain unoccupied for extended time periods.

      We have use to every tool we can to prevent further social harm.

      • dukeofurl 1.2.1

        Too stupid for words. The PMs stupidity shouldnt be followed by more of the same

    • Chris 1.3

      Does Key really believe that people won’t see through his cronyism?

      • Mosa 1.3.1

        On RNZ he doesn’t think there is audience so he just makes up crap and lefties don’t count I mean it’s not ZB and Horrible Hosking or a dumb ZM station its RNZ.

    • Treetop 1.4

      Great idea.

  2. Ad 2

    If the Prime Minister keeps pulling this mess closer to himself, and then makes the spectacularly dumb move of suspending the 2016 Auckland elections, he will have simply have generated the largest government entity outside of the NZDF.

    And then all the hard work of actually running a city becomes his. All the blame for housing becomes his. All the blame for transport becomes his. All the blame for rates becomes his. All the blame for the prioritisation and setting of budget becomes his. All the corporate governance of Watercare, ATEED, Auckland Transport, the port, the airport shareholding, etc etc.

    The downside of nationalising Auckland – because that’s the effect – is that John Key himself will hold the lightning rod for the entire thing.

    John Key had better be very careful what he is asking for.

    • dukeofurl 2.1

      Creating SHA areas was like asking farmers to grow more rice. But the farmers soon found if they stockpiled the rice…. the value went up.

      Last year they said any SHA that hadnt proceeded within 2 years would be cancelled.
      Apparently they have recently backed down on that as they just faced a ‘development strike’ till they did an backflip

    • Kevin 2.2

      One of his first moves would probably be a fire sale of the city’s assets. After that, he probably wouldn’t care. He has done what he set out to do.

      • madtom 2.2.1

        Sad but true. For our current rulers, any and all kinds of turmoil are just great looting opportunities.

        Solving problems isn’t half as profitable as creating and exploiting them. At least not if you’re only looking at the dollars in your secret accounts, hidden from the taxman and your countrymen.

        • madtom 2.2.1.1

          Has everyone forgotten who designed the unworkable structure of the “Supercity” government? And who imposed it on us all with zero consultation and no way to vote on it?

          But of course all its problems are our fault, not his.

          So we get to pay in dollars, lost local control, and hours wasted crawling along the overcrowded roads. While somebody, somewhere, buys luxury houses in Hawaii with our ripped off dollars.

  3. TC 3

    Selling state houses would seem moronic also putting aside the fact they lied at the GE about not selling anymore state assets.

    Have they not been paying CT’s bills as I expected some quality smoke n mirrors by now rather than snarky dictatorial shonky.

    Time someone showed him how much akl got ripped off by the last national govt in terms of tax taken on RUC etc v infrastructure spend. Or he could ask williamson who presided over it.

  4. Barfly 4

    “Business as usual”

  5. AmaKiwi 5

    Builders make big profits on large, lavish houses. They make very little on small, bare bones houses that lower income people can afford.

    Affordable basic houses will only be built by the government itself or with government incentives. Key can’t do that because it’s neoliberal blasphemy.

  6. save nz 6

    Key’s housing plan “moronic”

    Yep!!! +100

    And now the threat of dictatorship on Auckland. How much more interference can this government make on Auckland? We have already had the supercity disaster.

    This government are incompetent control freaks.

    • greywarshark 6.1

      save NZ
      This government are control freaks. That is their main competency,. It is utilised very religiously, into controlling the people to disable them, but enabling the control of money to advantage themselves, friends, their general moneyed class clan and temporarily useful persons.
      FIFY

  7. Hmmmm…. health , housing… unemployment ….

  8. Philj 8

    It’s a veneer of government. If it looks,smells, tastes like corporate interest then that’s what it is.

  9. greywarshark 9

    Housing provided by our government for its needy citizens! This shows Nick Smith’s interest in doing that, even in his home electorate. Like nil. Till enough people start making a fuss. What else can we make a fuss about!

    Nelson Mail 1 June 2016
    After eight years sitting empty and more than $500,000 in renovations a Child Youth and Family (CYF) home in Nelson will finally be tenanted.
    The eight-bedroom house at 71 Green St in Tahunanui was leased by the Ministry of Social Development to the Nelson Tasman Housing Trust last week to use for social housing purposes.

    With the exception of a few months in 2009 and 2010 when it was used by an Open Home Foundation foster family, the house has been unoccupied since 2007.
    http://www.stuff.co.nz/nelson-mail/news/80604499/half-million-spent-renovating-empty-cyf-house-in-nelson-but-tenants-to-come

  10. Jack Ramaka 10

    Land prices have got so expensive in Auckland it is not economic to build low cost housing and costs of development are too high with exorbidant Council costs $130k to subdivide plus additional funding costs due to Council delaying tactic, the risk of building is high and the banks don’t like taking the risk either?

    • AmaKiwi 10.1

      It is NEVER economic to build LOW cost housing.

      The big profits are in building big, opulent houses.

  11. M. Gray 11

    that’s what happens when you open the flood gates and we are open for business as our dear leader has told the world who cares if Kiwis are living in their cars its there own fault yeah right !

  12. Smilin 12

    What do you expect from a PM who’s never done anything but make money for a fraudulent system an borrowed and sold the country into the poor house and bolstered his ego with wimpy sound bytes on the MSM until we are all screaming
    Fuck off we want our country back

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  • Warning! Warning! Danger Jacinda Ardern! Danger Marama Davidson! Warning!
    Lost In Political Space: The most important takeaway from this latest Labour sexual assault scandal, which (if I may paraphrase Nixon’s White House counsel’s, John Dean’s, infamous description of Watergate) is “growing like a cancer” on the premiership, is the Labour Party organisation’s extraordinary professional paralysis in the face of ...
    1 week ago
  • Union solidarity with Ihumatao land occupation
    by Daphna Whitmore Every Sunday for the past two months unionists from First Union, with supporters from other unions, have set out to the Ihumatao land protest, put up gazebos and gas barbeques, and cooked food for a few hundred locals and supporters who have come from across the country. ...
    RedlineBy Daphna
    1 week ago
  • Climate Change: The wrong kind of trees?
    Newsroom today has an excellent, in-depth article on pine trees as carbon sinks. The TL;DR is that pine is really good at soaking up carbon, but people prefer far-less efficient native forests instead. Which is understandable, but there's two problems: firstly, we've pissed about so long on this problem that ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • No freedom of speech in Turkey
    Canan Kaftancioglu is a Turkish politician and member of the opposition Republican People's Party (CHP). Like most modern politicians, she tweets, and uses the platform to criticise the Turkish government. She has criticised them over the death of a 14-year-old boy who was hit by a tear gas grenade during ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Speaker: Tadhg Stopford: Why I’m standing for the ADHB
    Hi there, just call me Tim.We face tough problems, and I’d like to help, because there are solutions.An Auckand District Health Board member has nominated me for as a candidate for the ADHB, because her MS-related pain and fatigue is reduced with hemp products from Rotorua.  Nothing else helped her. If I ...
    1 week ago
  • Good little vassals
    The Inspector-General of Intelligence and Security has published their report on whether the SIS and GCSB had any complicity in American torture. And its damning. The pull quote is this:The Inquiry found both agencies, but to a much greater degree, the NZSIS, received many intelligence reports obtained from detainees who, ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Who Shall We Turn To When God, And Uncle Sam, Cease To Defend New Zealand?
    Bewhiskered Cassandra? Professor Hugh White’s chilling suggestion, advanced to select collections of academic, military and diplomatic Kiwi experts over the course of the past week, is that the assumptions upon which Australia and New Zealand have built their foreign affairs and defence policies for practically their entire histories – are ...
    1 week ago
  • The Politics of Opposition
    For most of the time I was a British MP, my party was out of government – these were the Thatcher years, when it was hard for anyone else to get a look-in. As a front-bencher and shadow minister, I became familiar with the strategies required in a parliamentary democracy ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • More expert comments on the Canadian fluoride-IQ paper
    The Green et al (2019) fluoride/IQ is certainly controversial – as would be expected from its subject (see If at first you don’t succeed . . . statistical manipulation might help and Politics of science – making a silk purse out of a sow’s ear). Anti-fluoride campaigners have been actively promoting it ...
    2 weeks ago
  • The return to guerrilla war in Colombia
    by Gearóid Ó Loingsigh On August 29th a video in which veteran FARC (Revolutionary Armed Forces of Colombia) commander Iván Márquez announced that they had taken up arms again was released. There was no delay in the reaction to it, from longtime Liberal Party figure and former president Uribe, for ...
    RedlineBy Admin
    2 weeks ago
  • Air New Zealand identifies this enormous plot of unused land as possible second airport site
    Air New Zealand couldn’t believe its luck that this seemingly ideal piece of real estate had so far gone entirely unnoticed. Air New Zealand’s search for a site to build a second Auckland Airport may have made a breakthrough this afternoon, after employees scanning Google satellite imagery spotted a huge, ...
    The CivilianBy admin
    2 weeks ago
  • Redline on the Labour Party
    No-one on the anti-capitalist left in this country today puts forward a case that Labour is on the side of the working class.  There are certainly people who call themselves ‘socialist’ who do, but they are essentially liberals with vested interests in Labourism – often for career reasons. Nevertheless, there ...
    RedlineBy Admin
    2 weeks ago

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