Tax-cuts or… Housing

Written By: - Date published: 8:36 am, October 21st, 2016 - 20 comments
Categories: housing - Tags:

The government is proud of their surplus, which at 0.7% of GDP isn’t quite as dramatic as the 9% of GDP deficit they had in 2011.  But as soon as we have a surplus, National starts salivating over tax cuts.  But may I continue on where I left off on other things that are far more pressing.

Today, the obvious one: Housing.

Their Special Housing Areas having resulted in just 18 affordable houses for first-time buyers (Colin James puts John Key’s response nicely: “dodgy numbers” are those which he doesn’t like), their ‘$1 billion’ infrastructure fund has been shown for the headline it is, and homelessness still an epidemic in Auckland, they are now considering Kiwibuild-lite.

30,000 houses in Auckland.  This will presumably cost… some money?  The Housing Corporation being out of it (great management there Bill!  Almost up to your handling of Solid Energy…), it’s not going to come from them.

Even with Kiwibuild-lite I see that $1.8 billion rapidly disappearing.  The couple of billion they’re having to spend on prisons thanks to their changes in bail and parole laws won’t help either.

Kiwibuild-lite is typical National ‘dribble politics’ (<- excellent Colin James article, recommended read).

They see a problem, they work out a solution that makes it look like they’re doing something, and just dribble enough money at it as they absolutely have to.  They don’t solve the problem, just give enough of an appearance.

But even with that, they’re going to spend their surplus multiple times as their cuts bite.

Watch them still promise tax-cuts though.

20 comments on “Tax-cuts or… Housing”

  1. save nz 1

    Love the way all the Natz bogus ‘social policies’ are projected over 5 or 10 years so they get the MSM headline and can cook the books.

    Someone should work out how much money developers made and who they are, on the SHA’s zoning changing compared to the 18 affordable houses built. Great example of ‘trickle down’ National style.

  2. Puckish Rogue 2

    Sounds familiar…

  3. Brendon Harre 3


    “You voted for hope …
    You voted for action …
    You voted for results …”
    … John Key

    John Key was just joking. What he meant by hope -is the downgrading of expectations of the poor accessing decent and affordable housing. What he meant by action was tinkering. What he meant by results was an ever increase in the social divide.

    Key: Speech to New Zealand Contractors Federation … 2007 | Scoop News

    “… Over the past few years a consensus has developed in New Zealand. We are facing a severe home affordability and ownership crisis. The crisis has reached dangerous levels in recent years and looks set to get worse.

    This is an issue that should concern all New Zealanders. It threatens a fundamental part of our culture, it threatens our communities and, ultimately, it threatens our economy.

    The good news is that we can turn the situation around. We can deal with the fundamental issues driving the home affordability crisis. Not just with rinky-dink schemes, but with sound long-term solutions to an issue that has long-term implications for New Zealand’s economy and society.

    National has a plan for doing this and we will be resolute in our commitment to the goal of ensuring more young Kiwis can aspire to buy their own home.

    It’s a worthy goal and one I hope you will support us in achieving. Thank-you.”

    John Key was just joking.

    Housing campaigner predicts spiralling house prices will be Key’s ‘Waterloo’ |

    “Affordable housing campaigner Hugh Pavletich has predicted house prices will be so high on the eve of the next election they will be “Key’s Waterloo”.

    By the next election, Pavletich said the median house price (for Auckland) would be more than 12 times the median household income.

    The current figure was just over ten, and when Housing Minister Nick Smith was appointed the median multiple in Auckland was 6.7. … “

  4. Enough is Enough 4

    Don’t worry Ben

    People know tax cuts are bad for the country. Let’s hope National promises big ones as it will be their undoing.

    • Puckish Rogue 4.1

      With the polling from Farrar I’m predicting there’ll be less tax cuts and more spending on health, police and housing

      • Chuck 4.1.1

        Sssh Puckish…it was meant to be a surprise!

        • Brendon Harre

          So is this the classic National trick of stealing policies from Labour and the Greens, rebottling then in a watered down form which they try to sell to the public as the “real deal”?

    • Brendon Harre 5.1

      Great satirical cartoon. The tinkering on housing from Smith and co is just so damn depressing. I hope Labour/Greens present us with something visionary next year.

  5. Philj 6

    The housing crisis is a disaster that is not going away. This will affect a whole generation of young people wanting their own home, especially in Auckland, and will impact many other regions of NZ. High prices, crazy growth, and sub standard infrastructure costs can only result in pain for more Kiwis. The Government has a tiger by the tail.

  6. Groundhog 7

    Most people that are homeless are homeless by choice (

    There is plenty of affordable housing in NZ, and an equal abundance of work for those who want it.

    • Brendon Harre 7.1

      Is this nirvana New Zealand or Planet Key?

    • reason 7.2

      Groundhog must have been drinking john keys 100% pure river water ………

      He appears to have shit on the brain….

      • Groundhog 7.2.1

        So you have no comment on the data itself?

        • Lloyd

          That’s not data, its propaganda. Groundhog, we aren’t all gullible, you can fool some of the people all the time, but its bloody difficult to fool them with crap.

          • Groundhog

            It’s data. You don’t like the result, that’s all.

            “A weekend police survey discovered only two beggars were actually homeless and the others were bringing props and even dogs to help them appear poor.
            The survey was conducted in Hamilton, on New Zealand’s North Island, with it finding only two of the 15 beggars were homeless.
            The remaining 13 had brought duvet covers, cardboard signs and even sickly looking pets to give the impression they were living on the streets.
            To address the issue, the city’s business community has called for change after beggars have been harassing or intimidating residents, according to TVNZ.”


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