Home > Social Issues, The Body Politic > Our growing housing problem…

Our growing housing problem…

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Muldoon and Key

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“Ministers have signalled that changes could include widening access to KiwiSaver contributions and subsidies, as well as boosting the government-guaranteed Welcome Home Loan scheme that is exempt from LVR calculations. “

Source: Fairfax Media – Few first home buyer details in PM speech

Well, so much for saving for our retirement instead of investing in property and thus fuelling an unsustainable, speculative housing bubble. The whole point of Kiwisaver was twofold,

  1. To create a local investment fund from which business could borrow, so we were not so desperately reliant on foreign capital. Our Aussie cuzzies currently have A$1.3 trillion-dollars invested in their  compulsory savings funds.
  2. To give New Zealanders – especially baby-boomers – a better standard of living upon their retirement.

In July 2008, Key promised not to interfere with Kiwisaver –  “there won’t be radical changes…there will be some modest changes to KiwiSaver”   – and like most of his promises, they are blown in the wind.

Source: NBR – Key signals ‘modest changes’ to KiwiSaver
All because Key and his cronies are unable to address the housing crisis directly;

  1. Introduce a capital gains tax (my preference is that it matches the company tax, and not GST)
  2. Restrict ownership to New Zealand citizens and permanent residents
  3. Begin a programme of home construction – including 10,000 state houses per year
  4. Pay the Unemployment Benefit as an incentive to employers to employ more apprentices
  5. Reduce/eliminate all fees for trades training course
  6. And long term: promote regional development to take pressure of Auckland and other highly urbanised areas.

But the Nats won’t do any of this. That would involve systematic State planning on a level that Key and his cronies would never countenance. It would fly in the face of their right wing ideology for minimal State involvement in housing and other economic activities.

(Unless you are Warner Bros or Skycity, in which case the Nats have an open chequebook to throw taxpayers’ money at corporate welfare.)

The only thing National is capable of is short term, self-serving policy-changes. Never mind that such changes create long term harm to our economy and social fabric.

Gutting Kiwisaver is economic sabotage – much like Muldoon did in 1975 (see:  Brian Gaynor: How Muldoon threw away NZ’s wealth).

Meanwhile, people desperate to get into their own homes are raiding their Kiwisaver accounts – effectively “stealing” from their own future;

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Hot property Home-buyers rush to cash in KiwiSaver

Source: Dominion Post – Hot property: Home-buyers rush to cash in KiwiSaver

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Never let it be said that the Nats learn from history…

*pfffft!*

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Previous related blogposts

Can we do it? Bloody oath we can!

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= fs =

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  1. 25 July 2013 at 3:48 pm

    Of course, when you say” Restrict ownership to non-New Zealand citizens and permanent residents” you mean “Restrict ownership to New Zealand citizens and permanent residents”, right?

    • 25 July 2013 at 3:52 pm

      Whups!

      Sorry about that typo, Kate. Duly amended. *blush*

  2. Theodore
    25 July 2013 at 5:12 pm

    Having lived through Muldoon’s scrapping of Labour’s super scheme in 1976, I can vouch for this. The Nat’s will undermine and destroy iwisaver if they allow it to be used for house deposits. And it will still do nothing to address the critical housing shortage and housing boom.

    The Nats are bloody minded in rejecting a capital gains tax.

  3. 25 July 2013 at 5:47 pm

    They’re neo-liberal zealots, and if history, religious, political and otherwise, teaches us anything, it’s that you can’t reason with a zealot. The sooner we vote these robber barons out, the better.

  4. D Weisz
    25 July 2013 at 6:51 pm

    Have new NZ residents & foreign buyers restricted to only been able to buy newly built houses.(off the Plan Homes). A Financial Transaction Tax on foreign capital investments. Incentivise savers of the $112 billions in bank accounts to invest more in kiwisaver, then invest part of kiwisavers fund into the house building program and then, those that are in kiwisaver lower their deposit contribution for people who are in kiwisaver who are buying a home.

  5. 25 July 2013 at 9:23 pm

    All excellent suggestions, D Weisz!

    In fact, the Australian government helps out new home buyers – but only with NEW homes, not existing properties. This encourage adding to the housing stock, instead of creating a speculative bubble on existing houses.

    Good common sense.

    And being good common sense is why it’s beyond our brain-dead politicians…

  6. Strawberry Paddocks
    26 July 2013 at 11:28 pm

    We haven’t got enough for a 20% deposit and with our high rent, we have no show of saving.It looks like our best option is to head of to Australia where my partner has already been offered a job paying twice what we currently earn, and cheap accomodation until we buy our own home.

    Thank you John Key for forcing us from our own country.

  7. 27 July 2013 at 10:58 am

    Strawberry Paddocks :
    We haven’t got enough for a 20% deposit and with our high rent, we have no show of saving.It looks like our best option is to head of to Australia where my partner has already been offered a job paying twice what we currently earn, and cheap accomodation until we buy our own home.
    Thank you John Key for forcing us from our own country.

    Yep the3 nats are brain dead they never have had any good ideas to improove new zealand only dumb ones to destroy the country and line the 1% per centers pockets.

  1. 22 May 2015 at 5:19 am
  2. 27 May 2015 at 8:02 am

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