Monday, March 24, 2008

Liarbour fails on housing, again



Naturally, councils report how the bureaucratic ways of dealing applkying them will not work and will add costs to councils and homeowners overall.

However, I will give Liarbour some credit. The cost of housing is no longer an issue they can ignore, even if Liarbour has a tendency to come up with the wrong solutions to a problem it helped cause itself.
As noted many times before, restrictive land use policies have pushed up section prices, Liarbour's higher government spending has fuelled interest rate rises, and Liarbour raising the top rate of income tax fuelled the growth of property investment, which boosted house prices faced by the less well-off.

Anyway, while Maryann Street has no sympathy for young people, at least Shane Jones is showing some promise with an idea to make the consents process easier, saving several thousand dollars per house. Still a drop in the ocean though.


2 comments:

Anonymous said...

Housing is Helen's oldest policy: she is "proud of saving HCNZ" while she was in the Labour government.

There is no housing shortage in NZ. There isn't even an affordability crisis. There are distortions in the market called State Housing - a smaller one called the accomodation supplement - and another one call the building standards - and that is all.

In Wainuiomata, there are privately owned houses rotting; same in Cannons creek and in Otara and in the rest of South and West Auckland.

Meanwhile beneficiaries live up large in state houses paid by tax dollars even when most of them are buying second and third houses of their own.

The solution is simple: sell HCNZ - ideally entrench legislation to make it illegal for government and councils to provide housing in competition with the private sector - oh and get rid of building regulations that serve to keep people out of houses they could otherwise afford. Nothing wrong with weather board and a tin roof - but it is illegal to build those kind of houses these days.

And when the state house bludgers have to get out and find houses, yeah well Wainui and Otara and the rest will not have empty houses any more

ZenTiger said...

Their half hearted effort to fix the RMA by adjusting 1% of it to supposedly reduce compliance costs will only lead to more bureaucratic expense as Council's seek to implement these policies. I suspect the end result will not make a positive difference.