Open mike 05/07/2024

14 comments on “Open mike 05/07/2024 ”

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1. aj 1

   5 July 2024 at 9:08 am

   Good live stream UK election. Novara Media with Michael Walker, Aaron Bastani, Ash Sarkar.
2. PsyclingLeft.Always 2

   5 July 2024 at 9:09 am

   The Nats…and landlords. We know they, and their ACT cronies, support them. Only have to look at the landlord tax gift.

   This had me looking…

   Is $2b accommodation supplement just lining landlord pockets?

   IMO Yes !…

   Reading the Link ..

   Housing Minister Chris Bishop says New Zealand rents are too high, but the evidence is mixed as to whether the accommodation supplement makes them higher.

   The government is undertaking a review of the housing supports available, including the supplement.

   Ok…a review.

   Im a bit cynical as to their intentions, as it were..

   He said he had been "staggered" by the proliferation of funds across the system to help with housing. "We are taking a good look at all of them and looking at how they deliver value for money and trying to be clear and deliberate about what we are trying to accomplish."

   IMO anything that POS says..is a reason to be worried. For those already up against a wall. And I dont mean landlords !

   Infometrics chief forecaster Gareth Kiernan burbles..

   "Economic theory states that any tax or subsidy will be borne or captured to some degree between producers – landlords in this case – and consumers – tenants in this case, but the specifics of who bears the cost or captures the subsidy depends on the dynamics of the market and the elasticity of demand and/or supply. Because demand and supply of rental housing are both very inelastic, it makes it difficult to theoretically determine where the incidence of the subsidy lies – hence the need for empirical studies."

   Wha?

   https://www.rnz.co.nz/news/national/521348/is-2b-accommodation-supplement-just-lining-landlord-pockets

   Anyone else with more input data, thoughts?
   • PsyclingLeft.Always 2.1

     5 July 2024 at 9:31 am

     One of the strugglers, Single mother of three Rebecca Dixon,tells her story….

     The government payment designed to help people struggling to pay for housing hasn't been increased in six years, with one woman relying on it to pay for rent looking to cut back on her medication just to make ends meet.

     Minister Louise Upston opines..and questions.

     So the government was making moves to drive rents down and put more money in people's pockets through tax relief and controlling inflation, Upston said.

     But she questioned whether the supplement was working well.

     "It's right that the accommodation supplement exists as safety net for those who are really struggling," she said.

     https://www.rnz.co.nz/news/national/517983/rent-stress-as-accommodation-supplement-stagnant

     Gotta laugh…(cynically) at the tax relief ! For landlords !? Also…when i see her talking "safety net"..alarm bells go off.
     • bwaghorn 2.1.1

       5 July 2024 at 12:29 pm

       Remove all subsidies make the owners bare the costs, labour did it to farmers , and farming is better for it.
   • Descendant Of Smith 2.2

     5 July 2024 at 11:52 am

     This official view shows that over time when the rate is lifted there are short term gains in household income that get eaten up over time as people reach the new maximum.

     It doesn't seem to include any commentary about how much more is paid out in Temporary Additional Support to cover rents. The average rent value paid by those getting AS would seem to be one of the few sources of rent data that isn't just new tenancies.

     I find it interesting, and I hadn't seen this data before, that 2011 is where new rents started diverging substantially from average. I've long thought that the lack of rent control and the rampant rent profiteering after the Christchurch earthquake played a big part in increasing market rents. Landlords got away with exorbitant increases which then spread to the rest of the country. If we can get away with it here we can get away with it anywhere.

     What I do like about this data is it does show not all landlords have shoved their rent up to current market rents. Would be interesting if there was an update to see any recent change to that. there is also some links to other research at the bottom of the document.

     https://www.msd.govt.nz/documents/about-msd-and-our-work/publications-resources/evaluation/family-packages/2021/2021-findings-on-accommodation-supplement.pdf
     • PsyclingLeft.Always 2.2.1

       5 July 2024 at 2:29 pm

       rampant rent profiteering after the Christchurch earthquake

       A sad indictment on those landlord/vultures lack of Humanity ( Im sure there are good ones?? )

       And yea , I would agree that once those got away…it would soon spread. like a greed contagion : (

       Thanks for reply. As I say..Im cynical and quite a bit worried on Bishop and Upston's..motives.
     • tWig 2.2.2

       5 July 2024 at 6:29 pm

       Much of the rise I reckon comes from pressure from property managers on owners. As managers rake off 7% of the rent, continually suggesting rent increases to the property owner is a great way of increasing the $ value of their cut. I think legislation to limit managers' cut to a flat fee would cool this nefarious cycle.
   • Charlotte Rust 2.3

     5 July 2024 at 4:25 pm

     This North and South article from a few years back has been the best explainer on the NZ housing markets I have read. A pertinent excerpt on the accommodation supplement:

     “There had been plenty of advice that the accommodation supplement was a bad idea. In 1988, the National Housing Commission had warned that such a system would “add little to the total housing supply while allowing private landlords and property speculators to make even higher charges for a non-expanding supply of housing”, which would in turn “raise the purchase price of land and rented property”.

     Full article here for anyone interested in the long read:

     https://northandsouth.co.nz/2021/08/16/nz-housing-crisis-the-great-divide/
3. Jimmy 3

   5 July 2024 at 9:12 am

   I would like to get a job like Darleen Tana has. Being paid a large well above average salary, and not even having to get out of bed for it!. Sorry Chloe, but you are just floundering in this interview. Yes it's very serious allegations etc. etc. At this rate, the investigation may last the entire three years and Darleen may be the first MP to get paid for a three year term and not even have to set foot in parliament!

   https://www.newshub.co.nz/home/politics/2024/07/green-co-leader-chl-e-swarbrick-looking-forward-to-unpacking-darleen-tana-investigation.html
   • Drowsy M. Kram 3.1

     5 July 2024 at 9:52 am

     https://www.parliament.nz/en/pb/hansard-debates/rhr/document/HansS_20231212_137520000/tana-darleen

     At this rate, the investigation may last the entire three years… and not even have to set foot in parliament!

     Anything's possible. I reckon the Greens are on course for their best ever result in Aotearoa NZ's next general election, whenever that may be – time will tell.

     Far right using climate crisis as bogeyman to frighten voters and build higher walls [4 July 2024]
     Put more simply, politics is now a battle between those who want to fix what is broken and those who want to keep breaking… this is the issue that will determine the habitability of our world.

     Facing up to that is an essential step in envisaging a better future. It will not be easy while so many other countries are drifting towards hostility, insularity and short-termism. But in the long run, it is the only chance democracy – and, indeed, humanity – has got.

     It’s a case of slower to go faster. – Luxon
     • Jimmy 3.1.1

       5 July 2024 at 11:11 am

       I actually agree with you, I also think the Greens will get a good result come the next election. The more problems they have with their MP's eg. Gloriz and Tana, the more popular they seem to get. Although I think a lot of the vote will come from a very weak Labour party, especially if Hipkins leads them in to the next election.
   • bwaghorn 3.2

     5 July 2024 at 12:30 pm

     Guilty to proven innocent then?
   • Barfly 3.3

     5 July 2024 at 12:42 pm

     You should on the TV Jimmy – you doing the adds where they say

     "Just Spray and Walk Away!"

     You're a natural
     • Patricia Bremner 3.3.1

       5 July 2024 at 3:23 pm

       100%

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