RBNZ confirms Govt isn’t doing enough on housing

The Reserve Bank has confirmed in writing what National has been saying for some time, that the Government lacks a clear direction when it comes to our housing emergency, National’s Shadow Treasurer Andrew Bayly says.

“It’s clear from the Reserve Bank’s letter that the Government is not doing enough in terms of its own responsibility to improve the housing supply.

“This includes a whole range of measures: amending the RMA quickly, ensuring adequate supply of land, addressing the issue of increasing construction costs and making sure building regulations are fit for purpose.

“In essence, the Reserve Bank is recommending a ‘Whole of Government’ approach by establishing a new agency to address these issues.

“What we need a more vigorous response from the Government.

“The Reserve Bank also recommended the Finance Minister amend its financial policy remit by taking advantage of Section 68B of the Reserve Bank Act to provide direct guidance to the bank’s monetary policy committee. This is the exactly the approach National recommended back in November.

“It’s clear the Government should be leading our approach to addressing New Zealand’s housing emergency, but it isn’t.

“It’s essential trading banks are encouraged to provide lending to the more productive parts of the economy such as the business, agriculture and property development sectors.

“The Reserve Bank has also confirmed the Government has far greater tools at its disposal for addressing house price inflation than it does but chooses not to use them.”