Alliance Party media release FOR IMMEDIATE RELEASE Monday 26 March 2007

Capital gains tax and public building programme needed to fix housing crisis

The Alliance Party says a preventable crisis in housing has been allowed to develop which is causing hardship and stress. Alliance Party President Victor Billot says it appears the Labour Government is more concerned about property speculators than its working class voters.

He says there are growing reports from housing and health officials of homelessness, families sharing accommodation and "couchsurfing" in temporary accommodation throughout New Zealand.

"This situation has been allowed to develop for several years – the Government does not want to get offside with the powerful private interests who are reaping the benefits of the current setup." Mr Billot says the problem requires a clear and fast moving response to cool down an over-valued property market which is becoming a major burden for many New Zealanders.

"The first goal of a housing policy for New Zealand needs to be affordable, available housing for all. Housing is a basic human necessity first and an investment opportunity second – we need to get our priorities straight."

He says the Alliance is proposing a capital gains tax on property, which the family home would be exempt from.

"This would have to be backed by a rapid expansion in building public housing for tenants, plus low-interest, no deposit loans for people on lower incomes and young people to get into their own home." The Alliance also supports subsidized home insulation and the public control of electricity to reduce household energy bills.

Mr Billot says these policies would work together to ensure all New Zealanders could enjoy a stable, secure family life.

"The current situation is getting out of control, and it is vastly unfair towards low-income people and young people trying to get their own place. There is a better way of running things, by putting people first."

ENDS

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