web analytics

NRT: National’s hand-wringing on housing

Written By: - Date published: 4:12 pm, April 23rd, 2015 - 20 comments
Categories: bill english, capital gains, Economy, housing, national - Tags: ,

no-right-turn-256Reposted from No Right Turn.

Auckland house prices have exploded again, and are at the silly stage where the houses actually earn more in capital gains than their inhabitants do in salaries. So what is the government doing about it?Nothing:

The Government has effectively left nothing “undone” to tackle sky-rocketing house prices in Auckland, Finance Minister Bill English says

[…]

“The best thing we can do for low and middle income families in Auckland is to allow the place to grow – growing up or growing out, that’s the choice for Auckland to make,” English said.

“You see in the media every day now commentators ranting about how the Government should do something about the housing market. Well I think Mayor Len [Brown] would agree there’s pretty much not really anything left undone that can be done that happens fast enough.

Bullshit. There are two very obvious policies the government could pursue to end this rampanat inflation:

  • They could tax capital gains, and so make house price speculation unprofitable.
  • They could address the underlying supply issues with a mass building programme aimed at increasing the supply of decent, affordable homes.

So why don’t they? For the obvious reason that a) government ministers and MPs are benefitting from the boom themselves; and b) any real action to curb Auckland’s insane house-price inflation would see a lot of paper wealth evaporate and over-leveraged house-buyers trapped with negative equity – something unlikely to endear government to house-owning Auckland voters. So instead we get hand-wringing and claims of powerlessness. But those claims are false. The government is not powerless; it simply chooses not to act.

20 comments on “NRT: National’s hand-wringing on housing ”

  1. Hayden 1

    What about 3: stop trying to jam everyone and everything into Auckland? Or at least try to stimulate some more economic activity outside Auckland?

  2. Draco T Bastard 2

    There are two very obvious policies the government could pursue to end this rampanat inflation:

    And 3 (or 4): Ban offshore ownership

    any real action to curb Auckland’s insane house-price inflation would see a lot of paper wealth evaporate and over-leveraged house-buyers trapped with negative equity – something unlikely to endear government to house-owning Auckland voters.

    The solution to which is for the government offer to buy the house and rent it back to the ex-owners.

  3. tracey 3

    But Matthew Hooton says only a minority can’t afford homes in Auckland? I dont think maths is his strong point, but then I don’t know all of the groups he had conveniently excluded from his calculation.

  4. Stuart Munro 4

    As bigtime fans of public/private partnerships you’d thought the Gnats’d’ve been building houses flat out as soon as they got into power…

    … until you remember they couldn’t run a piss up in a brewery. And so they don’t want to try.

    • Potato 4.1

      Unfair Stuart. I hear that getting pissed is one of the things they do successfully ;P

      • Draco T Bastard 4.1.1

        They don’t organise it though – that’s what the plebs are for don’t ya know?

  5. Brendon Harre 5

    Exactly the housing crisis is about a lack of political will not a lack of options.

    • Stuart Munro 5.1

      Dead right – we can paraphrase Bill English:

      “I am too lazy and useless to address the housing crisis.”

      • David H 5.1.1

        No, it’s. I am too lazy, useless, and incompetent, to address the housing crisis.
        Or he’s leveraged up to the eyeballs, and holding off doing anything, wanting to make a killing. Naa he’s not that smart, but, others are.

        • Stuart Munro 5.1.1.1

          It is not a possible response, as housing minister, to say, “My inaction is on behalf of my corrupt associates who are profiting from my failure to do my job.”

          So I reiterate, English is too lazy or stupid to be housing minister and must be removed.

  6. Mike Steinberg 6

    Isn’t the most obvious thing to address demand by restricting overseas investment and reducing immigration levels?

    Since the 1960’s there’s been a strong relationship between net population growth via immigration flows and house prices.

    http://www.rbnz.govt.nz/research_and_publications/discussion_papers/2007/dp07_12.pdf

  7. Brendon Harre 7

    The UK housing situation is similar to ours all their political parties lack the political will to supply more affordable houses, with the possible exception of the UK Labour party and even they are a bit confused.

    http://blogs.lse.ac.uk/politicsandpolicy/a-real-housing-crisis-but-only-fake-solutions/

    Meanwhile in Australia urban section costs on a per sqm basis in their capital cities are increasing so quickly the price line is now vertical.

    http://www.macrobusiness.com.au/2015/04/australian-land-prices-go-vertical/screenhunter_7170-apr-23-10-53/

    Surely there is a first mover advantage in a country like NZ in providing affordable urban living?

  8. Reddelusion 8

    Boris Johnson nailed it in regard to the left’, despite socialism proven failure after failure, there is alway another idiot out there who thinks they can make it work

    • Stuart Munro 8.1

      You’re an ignorant fool: Savage made state housing work and thereby grew our country, and incidentally, the economy.

      Singapore copied us.

    • Draco T Bastard 8.2

      Except that history shows the exact opposite. Socialism working and capitalism collapsing every time.

  9. AmaKiwi 9

    This Parliament will do NOTHING to stem property prices because 66 of them are property speculators themselves.

    Duncan Garner lists 66 MPs who own more than just their family home.

    http://www.radiolive.co.nz/MPs-who-own-more-than-one-property/tabid/674/articleID/41364/Default.aspx

    38 National MPs (10 with real estate worth between $4 million and $68 million)
    17 Labour MPs
    5 Green MPs
    5 NZ First MPs
    1 Peter Dunne

    Until we vote the real estate speculators out of parliament nothing will change.

    Note: Neither Andrew Little nor David Cunliffe nor Grant Robertson own multiple properties.

  10. david 10

    It is not good politics for the Nats to solve the crisis. This is because their supporters are making a fortune on it, developers are creaming it, banks are doing a great trade, and many speculators don’t want the party to end.

    To solve the crisis will take one thing. Vote national out!

Recent Comments

Recent Posts

  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kaipara Moana restoration takes next step
    A Memorandum of Understanding has been signed today at Waihāua Marae between the Crown, local iwi and councils to protect, restore and enhance the mauri of Kaipara Moana in Northland. Environment Minister David Parker signed the document on behalf of the Crown along with representatives from Ngā Maunga Whakahī, Ngāti ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand and Uruguay unite on reducing livestock production emissions
    Agriculture Minister Damien O’Connor and Uruguayan Minister of Livestock, Agriculture and Fisheries Carlos María Uriarte have welcomed the launch of a three-year project that will underpin sustainable livestock production in Uruguay, Argentina, and Costa Rica.  The project called ‘Innovation for pasture management’ is led by Uruguay’s National Institute of Agricultural ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 3100 jobs created through marae upgrades
    Hundreds of marae throughout the country will be upgraded through investments from the Provincial Growth Fund’s refocused post COVID-19 funding to create jobs and put money into the pockets of local tradespeople and businesses, Regional Economic Development Minister Shane Jones and Māori Development Minister Nanaia Mahuta have announced. “A total ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Health volunteers recognised in annual awards
    Health Minister Chris Hipkins has announced 9 teams and 14 individuals are the recipients of this year’s Minister of Health Volunteer Awards.  “The health volunteer awards celebrate and recognise the thousands of dedicated health sector volunteers who give many hours of their time to help other New Zealanders,” Mr Hipkins ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community COVID-19 Fund supports Pacific recovery
    The Minister for Pacific Peoples, Aupito William Sio says a total of 264 groups and individuals have successfully applied for the Pacific Aotearoa Community COVID-19 Recovery Fund, that will support Pacific communities drive their own COVID-19 recovery strategies, initiatives, and actions. “I am keen to see this Fund support Pacific ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community benefits from Māori apprenticeships
    Up to 50 Māori apprentices in Wellington will receive paid training to build houses for their local communities, thanks to a $2.75 million investment from the Māori Trades and Training Fund, announced Employment Minister Willie Jackson today. “This funding will enable Ngāti Toa Rangatira Incorporated to provide its Ngā Kaimahi ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Training fund supports Māori jobseekers
    Rapidly growing sectors will benefit from a $990,000 Māori Trades and Training Fund investment which will see Wellington jobseekers supported into work, announced Employment Minister Willie Jackson today. “This funding will enable Sapphire Consultants Ltd. to help up to 45 Māori jobseekers into paid training initiatives over two years through ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruakura Inland Port development vital infrastructure for Waikato
    The Government is investing $40 million to develop an inland port at Ruakura which will become a freight super-hub and a future business, research and residential development for the Waikato, Urban Development and Transport Minister Phil Twyford, and Māori Development Minister Nanaia Mahuta announced today. The funding has been has ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Appointments made to Defence Expert Review Group
    Defence Minister Ron Mark announced today the establishment of an Expert Review Group to review a number of aspects of the New Zealand Defence Force’s (NZDF) structure, information management and record-keeping processes.  The Expert Review Group’s work arises out of the first recommendation from the Report of the Government’s Inquiry ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • No active community cases of COVID-19
    There are no active community cases of COVID-19 remaining in the country after the last people from the recent outbreak have recovered from the virus, Health Minister Chris Hipkins said today. “This is a big milestone. New Zealanders have once again through their collective actions squashed the virus. The systems ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Clean energy upgrade for more public buildings
    More public buildings will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. Minister Shaw announced that Lincoln and Auckland universities will receive support through the Clean-Powered Public Service Fund to replace fossil fuel boilers. Southern, Taranaki, and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Schools back donations scheme for the second year
    More schools have opted in to the donations scheme for 2021, compared to 2020 when the scheme was introduced. “The families of more than 447,000 students will be better off next year, with 94% of eligible schools and kura opting into the scheme,” Education Minister Chris Hipkins said. “This is ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Ruapehu cycle trails gets PGF boost
    The spectacular Mountains to Sea cycle trail in Ruapehu District will receive $4.6 million in funding from the Provincial Growth Fund for two additional trails, Regional Economic Development Minister Shane Jones announced today. “This is an exciting development for the local community, and one that will provide significant economic opportunities ...
    BeehiveBy beehive.govt.nz
    3 weeks ago