New Zealand Labour Party

John Key must ‘get on with it’, not leave it to Reserve Bank

John Key can’t just tell the Reserve Bank to ‘get on with’ fixing the housing crisis – he must act to tackle the rampant speculation in the housing market that has taken place under his watch, says Labour’s Finance spokesperson Grant Robertson.

“House prices are being forced up around the country by speculators here and overseas – as shown by QV figures yesterday putting average Auckland house prices at almost $1m.

“The Reserve Bank can’t fix this on its own. We have seen that LVRs are only a temporary band aid – they don’t fix the problem long term.

“The heavy lifting has to come from the Government. It is extraordinary that John Key has effectively said it’s the Reserve Bank’s job to tackle demand. He’s wrong. National has had years to ‘get on with it’ – and yet the housing crisis in New Zealand keeps growing.

“Labour would welcome moves by the Reserve Bank tomorrow to tackle speculation. But it has to be targeted at investors and not shut yet more first home buyers out of the market. Blanket LVRs or debt to income ratios are not the solution.

“The housing crisis needs a truly comprehensive solution. That won’t come from National. Only a Labour-led government will deliver that” says Grant Robertson.