English warns of 'price spiral' in Auckland housing
Feb 28, 2016
Finance Minister Bill English warns of a “price spiral” in Auckland housing if Auckland Council doesn’t deliver more houses.
“If the plan is seen not to deliver the supply that’s required, you’re likely to see upward pressure on prices” at a time when prices are already “pretty high” by “historical standards," he says.
Mr English says tax cuts and increased social spending “aren’t mutually exclusive options” and that “surging migration” means pressure is growing for more spending on early childhood education, schools and hospitals.
Auckland Council’s change of plan on housing “might make the challenge a bit more difficult” but the debate is “a legitimate community discussion,” he says.
He's “optimistic” the independent hearings panel will deliver “a good result.”
The finance minister suggests Auckland’s eastern suburbs may get a free pass on intensification: “The government has made it clear. It needs to see a plan ultimately that enables enough houses. And if that means more in the south and the west out on the edge of the city, well, that’s where they’ll go."
When asked if he’s going softly because it’s National voters leading the charge, Mr English says he doesn’t know who is leading the challenge to plans for more intensification in Auckland. Neither does he know anything about the possibility of selling the Remuera golf course for housing (a possibility raised by mayoral front-runner Phil Goff earlier this week).
Mr English defends his off-the-speech statement on Thursday that “unemployment has peaked” and is “likely to continue to decrease” despite Treasury’s forecasts that it will rise above six percent in 2016 and 2017.
“Sometimes we disagree on things… part of that story, I think, would be that instead of unemployment going to 6.5% or 7%, as some were saying, including the Labour Party, it’s likely to be under 6% and maybe drop off”.