New Zealand Labour Party

Banks the latest to voice concerns over housing

The Reserve Bank has revealed banks are becoming “more and more concerned” about the effects of the housing crisis, adding yet another weighty voice to the calls for action from the Government, says Labour’s Finance spokesperson Grant Robertson.

“The Reserve Bank has stopped dropping hints and sending smoke signals and is now talking in direct language.

“Deputy Governor Grant Spencer said this morning banks are worried about the effects of the housing crisis. We’ve seen that through the actions of the Big Four banks in cutting off loans to foreign speculators to protect their balance sheet against the bubble bursting.

“Grant Spencer has spelled out three areas the Government needs to act on as part of a ‘team effort’ to tackle housing. National can’t ignore it.

“The first is to dramatically boost supply. The second is to remove incentives for speculators. The third is to review immigration policy.

“The Reserve Bank is right. National must take action on these three areas as soon as possible. If Ministers refuse to get on the team with the Reserve Bank they need to be subbed off.

“With house prices skyrocketing by the day there isn’t time to mess around. If National doesn’t want to be part of the team, Labour will.

“Labour has a plan to deal with all aspects of the housing crisis and restore the Kiwi dream of home ownership,” says Grant Robertson.