“Grant Robertson’s meddling in the demand side of housing won’t build a single extra home,” says ACT’s Housing
spokesperson Brooke van Velden.
“Finance Minister Grant Robertson has agreed "in-principle" to give the Reserve Bank (RBNZ) debt-to-income (DTI) tools.
“A 2017 paper written by Ian Harrison, an economist who has formerly worked at the Reserve Bank, the World Bank and the
IMF demonstrated that a debt-to-income restriction fails a cost benefit analysis. In other words, New Zealanders will be
worse off as a result of the policy.
“The only reason they’re being discussed is because Jacinda and Grant have lost control of the housing market and keep
trying to blame anyone but themselves.
“The Government can tinker with the rules all it wants – what it needs to do is actually build houses.
“The Government’s has done enormous damage to property investors at the same time. We’ve seen the announcement on
mortgage interest deductibility has not only failed to help first home buyers, it has scapegoated and vilified property
investors.
“The real problem is supply. ACT says the current generation of first home buyers do not need new taxes, but to build
like the Boomers. We need major reform in infrastructure funding and planning, resource consenting, and building
consents.
“Without supply side reform, the Government’s policy is just an attempt to choose who gets to miss out in a supply
constrained market. And the Government can’t even get that right.”