Friday, 9 March 2007

Land price inquiry an important adjunct to monetary policy: Copeland

United Future finance spokesperson Gordon Copeland today drew a direct link between Reserve Bank Governor Allan Bollard's desire to see a correction in housing prices and the Inquiry into Home Affordability that has recently been announced by Parliament's Commerce select committee.

"I have taken a deep interest in the link between the supply of land for new housing, and monetary policy since about the middle of last year," said Mr Copeland.

"On three occasions, including yesterday, I have discussed the issue of land supply, and its effect on the price of housing, with Dr Bollard at the Finance and Expenditure Committee. Yesterday Dr Bollard confirmed that the proposed inquiry could make a useful contribution to the goal of more affordable housing in New Zealand.

"Both Dr Bollard and I share an interest in this matter because a way needs to be found to rein in the housing price juggernaut which we have experienced in New Zealand over the last few years.

"We are way out of line with international comparisons and many household balance sheets are now stretched to breaking point.

"However that is only one aspect of the matter. Of greater concern to me is the simple reality that hundreds of thousands of young families are now shut out of the home ownership dream and locked into renting for longer periods than ever before.

"We owe it to them to do something constructive and I have no doubt the Inquiry will show that a complete freeing up of land for new housing subdivisions will be an important part of the answer."

ENDS

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