Finance Minister fiddles while housing market burns

The Minister of Finance is taking far too long to put a lid on rising house prices, National’s Shadow Treasurer Andrew Bayly says.

“Grant Robertson’s announcement that he will respond later this year to the Reserve Bank’s suggestions for more tools to cool the housing market isn’t good enough.

“Given the Finance Minister has access to almost 400 employees at Treasury, this is an unnecessary and unacceptable delay.

“With every month that ticks by, the inequality being caused by rapid escalation in house prices grows. Prices have increased by 41 per cent since Jacinda Ardern became Prime Minister. First-home buyers are becoming increasing locked out of the market.

“This rapid escalation presents a risk to the soundness of the financial system when monetary policy eventually becomes less accommodating as a solution.

“As a matter of urgency, the Finance Minister should be consulting with the Reserve Bank about what it can do to facilitate efficient and sound lending to the productive parts of our economy, such as the business, agriculture and house building sectors.”