Alliance Party media release FOR IMMEDIATE RELEASE Monday 26 February 2007

No wand waving required on housing – just bold policies to get people into their own homes

The Prime Minister has washed her hands of the crisis in affordable housing, says the Alliance Party.

Alliance Party President Victor Billot says Helen Clark's comments on television that "you can't wave a wand and bring the prices down" showed a casual attitude out of step with the pressure many families and individuals were under.

"I can understand it isn't a pressing issue for the top income bracket, but in the last few years house prices have skyrocketed and young people are faced with astronomical mortgages and rents."

Mr Billot says no wand waving or other magical tricks from Helen Clark are required, but there are a whole range of practical policies that could be quickly put in place.

He says three key planks in the Alliance plan to get people into their own homes and affordable rentals would be a major public works programme to expand the number of houses, low interest loans, and a capital gains tax on all but the family home.

"These policies would take the speculative heat out of the market, and offer people a choice."

He says that such policies would have the same effect on housing that the entry of Kiwibank had on credit card interest rates.

"It would work for the consumer, it would work for the people."

Mr Billot says the "hands off" mentality from Labour and National governments since the 1980s has led to the current situation.

He says the suggestion from National MP Phil Heatley for a housing affordability inquiry must be a joke, since National policies had directly contributed to the problem, and the National party was in the hands of private interests and speculators who were benefiting from the current system.

"I can save him the trouble of an inquiry – free market policies mean inequality, unaffordable housing and struggling families."

Mr Billot says the primary goal of housing policy should be to get people into good quality homes, with investment opportunities coming second.

ENDS

http://www.alliance.org.nz

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