Thursday, April 30, 2015

But our subsidies and bureaucrats are better

I'm still around, in case you are wondering.

I wrote here my thoughts on the Gnats election housing policy.  Now the alcohol has been added to the punch:
More than 2000 first-home buyers have snapped up new housing subsidies worth up to $20,000 in less than a month, forcing Housing New Zealand to take on more staff just to distribute the grants.

But new data shows surging house prices at the lower end of the market have eclipsed the subsidies over the same period.
Stoic defender of free markets and less government, Nick Smith, said this:
Housing and Building Minister Nick Smith said the fast uptake of the larger HomeStart subsidies was a "stunning result", tripling the number of applicants this time last year under the old scheme.

"The scheme has actually proved so popular that Housing New Zealand has had to expand the number of staff who are processing the applications," Dr Smith said.
Fantastic!  The National Party is reducing unemployment by providing state subsidies and employing bureaucrats to administer them, but the subsidy has proved worthless!  Brilliant!  Whoever thought of that should be promoted to the front bench.  And it only cost $435 million!  Moreover, Nick Smith calls it "stunning".      

That must be the most expensive no result ever.

And what of the future?
Housing officials predict uptake will climb to more than 80,000 over five years, and $435 million has been put aside to pay for the grants.
More awesomeness!

I mean if 2,000 means an expansion of bureaucrats imagine what 80,000 will do.  We'll have full employment!

If we're lucky we'll get another government department out of it, and maybe a special ministerial portfolio.

Can't wait.


Andrew Berwick said...

Key & English's "subsidy" to Sky City: 460 MILLION

Oh please. Key & English's "rescue" of SCF: 1.6 BILLION

Ken & English's "rescue" of KiwiRail: 7 BILLION

Key & English's borrowing since they took office: 70 BILLION

Howie said...

Ha ha! Andrew Berwick! Get it? He's trying to be funny by referencing a mass murderer with his handle! Doesn't get any cleverer!

The Veteran said...

Nick ... so Govt has no role in helping struggling first home buyers to access the market!!!

So I guess you were philosophically opposed to the programme all those years ago which allowed people to capitalise the family benefit which saw tens of thousands able to buy their first homes.

One has to ask whether you see any role for Govt in the provision of Social Services?

Anonymous said...

The housing shortage causing the unaffordability for first home buyers is largely caused by competing immigration demand. Our forebears came ashore, brought land and built their own houses. That should work today. Make more land available by rezoning, and allow all foreign new immigrants to only own buildings that they have purchased 'off the plans'. In other words, look after themselves with new accommodation.


Howie said...

"Our forebears came ashore, brought land and built their own houses."

Amazing! How much land did each of them bring? Or do you mean "bought"? If so, from whom did they buy it?

Anonymous said...

You're correct, 'bought land' - from the legal owners.

pdm said...

Kiwrail $&Billion - necessary because of Cullen/Clark stupidity.

SCF - $1.6 Billion - necessary to fulfill the obligations under Laws passed the Clark Govt. Most if not all of this has been recovered as I understand it.

Borrowings $70Billion. Obviously this clown did not notice two Canterbury earthquakes and a global financial crisis or the black hole left by Clark/Cullen and their cohorts.

Finally $60million to Sky City - not as far as I am aware.

pdm said...

Oops - the allegation is $460 million to Sky City.

Anonymous said...

The Government removed import duty on some building materials to reduce the cost of building a new house by about $3500. The following month, Auckland Watercare increased the cost of a connection to a new house by $3000. Can you see the problem yet Nick? That's 3500 steps forward, then 3000 steps backward. When the idiots who continue to put up with their elected Council finally get the message, there may be some progress.


Adolf Fiinkensein said...


Nailed it!

Nick K said...

Vet - the government hasn't helped anyone buy a home here because the subsidy has proved worthless.