Call for Cabinet to act on land prices today

City Councillor Glenn Livingstone is calling upon the cabinet when it meets in Christchurch today to seize the opportunity to facilitate consortiums of red-zoned residents to buy bare land at rural prices.

"The Prime Minister has said that there will be unders and overs in the package for red-zoned residents and he is right", says Councillor Livingstone.

"What we're finding, however, is that there are far too many unders for our liking and I call upon the government to build on the features of their offer to red-zoned home owners by enabling those caught short to afford a section".

Councillor Livingstone says that while construction prices of new homes will be within the reach of most of those in the red-zone, in relation to the pay-out on their home, "by far and away, it is the land that is the most costly component."

"If the government was to oversee consortiums, making sections prices more accessible for red zoned residents, this would stimulate the construction sector and free up more disposable income, thereby stimulating the Christchurch economy, " he says.

"This would not entail any additional fiscal cost or risk to the government and it would avoid the excess demand for the stock of houses that first home buyers also seek", says Councillor Livingstone. "If we flood the market with the supply of land, we'll bring section prices down and help kick start the economic recovery in Christchurch and in Canterbury".

ENDS

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