6 August 2007

National's housing solutions need a reality check, Greens say

National Party leader John Key's solutions to the housing affordability crisis are outdated, unworkable and contrary to principles of environmental and social sustainability, Green Party Housing Spokesperson Sue Bradford says.

"National sold off over 12,000 state houses in the 90s. All that did was create an even deeper housing crisis for low income people, from which we still haven't recovered," Ms Bradford says.

"National needs to explain how people who currently qualify for state housing could possibly find the deposit, or means to pay off a mortgage in future. Even if John Key reduced income tax to zero, people on low wages and benefits would still be unable to purchase, if state houses were sold at market prices.

"I don't know if wealthy Mr Key understands what it means to live on the minimum wage. An income of $450 per week gross does not leave much left over for saving or for mortgage repayments in Auckland.

" There are practical solutions available. To increase supply, the Greens support measures to build affordable social housing more quickly, and to place energy efficient, medium density housing around public transport corridors in cities such as Auckland.

"In order to stabilise the price of housing by reducing demand, the Greens also support changes to remove the special tax rules that allow the cost of investment property to be offset against income tax, as well as a capital gains tax excluding the primary family home. The Greens would also allow only New Zealand citizens and residents to buy land here.

"National rightly sees improving the supply of houses as part of the solution. Yet lowering environmental protection through weakening the RMA will increase urban sprawl, with all of its related problems - such as the lack of adequate public transport and services, and the gobbling up of even more farmland and coastal areas.

"Nor would a massive increase in urban sprawl solve the affordability issue as the price of land would remain as high as ever. The commuter boundaries for Auckland now extend to places like Mangawhai in the north and to the Waikato townships to the south, with land prices high at every point in between. Nothing that National is putting up would change this, given that the price of land constitutes a major part of the problem.

"I challenge National to offer solutions to the housing crisis that will actually work - and that pay heed to the challenges posed by climate change and peak oil. Mr Key's current raft of suggestions will succeed only in making life harder for those already struggling near the bottom of the housing market," Ms Bradford says.

ENDS

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