Qualified Brash Bravo for Goff

Sensible New Zealanders will be hopeful that recent comments by Labour leader Phil Goff about the availability of new sections in earthquake-ravaged Christchurch herald the end of his latter-day lurch leftward, says ACT New Zealand leader Dr Don Brash.

"Mr Goff has expressed fears of a likely sky-rocketing of house prices in Christchurch as home-owners unable to rebuild on their existing properties seek out new sections," Dr Brash notes.

"He observed that one of the solutions was to ensure the resource consent process didn't unduly restrict the availability of new sections.

"I applaud that observation. I have been arguing for some time that consent procedures and zoning constraints under the RMA are distorting residential land prices all around the country. In Christchurch the situation is hugely exacerbated by the surge in demand for new sections in the wake of the earthquakes.

"Unfortunately the wisdom of Mr Goff's remarks is subverted by his talk about knocking the heads of insurers together. He is blaming them in part for the upsurge in demand because of their reluctance to insure rebuilt homes on existing sections. Is he saying they should be bullied or coerced by law into doing so? Does he want in effect to nationalise the insurance industry? That would indicate a serious relapse in his recovery from Kremlinomics.

"The willingness or otherwise of insurers to insure is a key signal of the viability of any project in an open market - and as Mr Goff himself acknowledged, the market should be allowed to work.

"The only heads that should be knocked together are those of government, the Canterbury Earthquake Recovery Authority and the Christchurch City Council. Among them they must make sure that zoning restrictions do not needlessly limit the availability of new sections and drive prices up artificially. Red Zone home-owners who've already lost huge amounts of equity don't deserve such a double-whammy," Dr Brash concludes