New Zealand Labour Party

MPS shows new approach needed on housing

The Reserve Bank’s latest Monetary Policy Statement provides further evidence that only a change in government will start to fix the housing crisis, says Labour Finance spokesperson Grant Robertson.

“It is more evident than ever that only a Labour-led government has the package of solutions to start the job of dealing with the housing crisis.

“National has effectively outsourced policy to the Reserve Bank. The Bank has been playing its part to stabilise rampant house prices, but they can’t do it all.

“The fact remains that housing affordability remains out of reach for far many New Zealanders. The Reserve Bank measures have only partially slowed runaway housing prices, which were too expensive for too many Kiwis in the first place.

“Only Labour has the comprehensive plan to get on top of supply and demand issues. We will build 100,000 new, affordable homes through KiwiBuild, stop the sale of state houses and build more social housing, and crack down on speculators, offshore and here at home.

Grant Robertson says while the Monetary Policy Statement paints a positive picture of the economy as a whole, there are areas of concern to be wary of.

“The forecast for dairy prices remains stagnant, highlighting the need to innovate better and diversify our economy. However, we’re also seeing that business investment will remain flat, so New Zealand’s economy isn’t becoming more resilient to the impact that a sudden downturn in global dairy prices might cause.

“Wage inflation is also expected to be consistently low for the foreseeable future, meaning that workers are likely to see little of New Zealand’s economic performance benefitting their own pocket,” says Grant Robertson.