Labour admits guilt with housing moves

National Party Finance spokesman Bill English says the housing policies announced yesterday by Labour are an admission of both guilt and failure.

"The Government's own figures show regulatory hurdles can add tens of thousands of dollars to the cost of building a new home. That includes development levies of up to $40,000 a house in Auckland - and delays in gaining planning approvals that can add as much as $15,000 to the cost of a new house.

"These homeowners are now facing interest rates of 9.5% to 10 % which hits their household budgets hard.
"Why wasn't Labour listening when they were warned their complicated bureaucratic reforms would cost homeowners dearly?

"Labour discovered tax cuts in election year and now they have discovered the mess they have made for home buyers who are up to their necks in debt because government policies have added tens of thousands of dollars to the cost of their house.

"Homebuyers need the comprehensive package of changes outlined by John Key last year.

"No measure can fix a problem nine years in the making. It will take several years of leadership from a determined fresh government to undo the damage Labour has done.

"Their own attempts have been clumsy and ineffective.

"Local authorities say Maryan Street's Affordable Housing Bill is fatally flawed and will load more costs onto ratepayers. Labour's other policy initiatives include listing Auckland Zoo as public land available for cheap housing.

"And just this weekend they have announced they want people to get used to the prospect of renting all their lives, yet another admission of defeat."