Mr Key effectively ruled out any changes in immigration policy to tackle price rises in housing in Auckland, indicating he favoured possible action by the Reserve Bank to make it tougher on property investors. He said-
“It might be an idea. I think those alternative tools in the toolbox are much better than blanket and wholesale rises of the interest rates which wouldn’t be justifiable given where inflation is at the moment.”
The Prime Minister blamed the high prices on the artificial boundaries of the metropolitan urban limit, and pointed out that the Government had fixed this by allocating special housing areas. He said the average price in the new boundaries was more like $750,000.
So now he proposes more “artificial boundaries” by means of some obscure Reserve Bank plan.
Frankly I think this is weak apologetic garbage. Mass immigration into Auckland, for the purpose of driving the National party’s economic plan, has driven house prices into the stratosphere, and put enormous pressure on services. Rates are rising because the council needs to rush to build infrastructure in an attempt to cope with the influx.
Official data shows an intake of deep-pocketed mainland Chinese has helped New Zealand reach its highest number of immigrants in more than 10 years, and most of the increases have occurred in Auckland. New Zealand’s net migration surged to an 11-year high of 31,900 in the year to March 2013.
Key needs to face the reality that his plan to boost NZ’s economy by mass immigration is just not sustainable. We need real investment in real projects, not just the unproductive churn of real estate sales, and that won’t happen until we deal with a government that is too big and a regulations regime that is out of control. This is the only way we get out of the debt disaster that consecutive socialist governments from the 80’s onward have created.
Key’s belief that we can get back into the black by a continuous stream of immigrants is a twofold mistake in that it doesn’t produce any real economic gain and destroys our native culture.
Remember that “Kiwi kulture” that we all used to talk about a few years ago?? Apparently, all of a sudden, it has no value at all.