Media Statement
\nNovember 19, 2012<\/p>\n
Labour affordable housing scheme a \u2018patch-on solution\u2019<\/p>\n
A New Economics Party Spokesperson Deirdre Kent said that although Labour had the right goal, their proposed method of doing it doesn\u2019t get to the bottom of the problem and is an artificial patch-on solution. \u201cWhile land remains as an asset class to speculate on, property prices will keep rising. It is private landowners and banks who reap the unearned gains from rising land prices, and this widens the gap between rich and poor.\u201d<\/p>\n
\u201cLand now comprises an average of 60% of the value of a property in Auckland,\u201d she said. \u201cThese 100,000 affordable homes will be bought cheaply and flicked over for a profit, so at least Labour should put a caveat on each title to prevent that.\u201d<\/p>\n
\u201cOnly by addressing the rising land price problem at its roots can we wrench power from the overseas owned banks, which took $3.5 billion in profits last year out of the country. Other solutions are artificial and only work for a while.<\/p>\n
\u201cUntil we wake up and see that the property bubble in Auckland concentrates wealth with landowners and banks, we will not make much progress in bridging the wealth gap,\u201d she said. \u201cLand should be treated as quite a different asset class to buildings. We need a method to take land out of the market place,\u201d she said.<\/p>\n
She said Labour\u2019s weak Capital Gains Tax won\u2019t touch the affordable housing problem, because it leaves the family home untouched and is set far too low anyway.<\/p>\n
For further comment phone Deirdre Kent, 06 364 7779
\n021 728 852
\nNew Economics Party<\/p>\n","protected":false},"excerpt":{"rendered":"
Media Statement November 19, 2012 Labour affordable housing scheme a \u2018patch-on solution\u2019 A New Economics Party Spokesperson Deirdre Kent said that although Labour had the right goal, their proposed method of doing it doesn\u2019t get to the bottom of the … Continue reading