Confidence in KiwiBuild is rapidly fading, with the Salvation Army the latest group to lose faith, today urging Phil Twyford to raise the white flag and call in the experts, National’s Housing and Urban Development spokesperson Judith Collins says.
“It’s time for Phil to face the facts - his KiwiBuild plan is ill-thought through and it’s not delivering for New Zealanders, but he seems to be the only person refusing to face the facts.
“You’ve had builders, academics, the Treasury, Reserve Bank, MBIE, economists and media commentators all pointing out the serious flaws in his policy, and saying the Government won’t deliver on its promises, in spite of Phil’s ‘Hear No Evil’ approach to his responsibilities.
“And today it’s the Salvation Army urging Phil to accept he’s not up to it and calling on the Government to bring in the experts to deliver more houses.
“The KiwiBuild programme needs to be directed by New Zealanders who have … a wide range of high-quality skills. We urge the Government to urgently convene such a group so that the KiwiBuild concept can deliver as quickly as possible this homeownership housing,” it said.
“Well it’s clear Phil’s not up to it and instead he’s taking residential construction backwards,” Ms Collins says.
“Under National we had reached record levels of housing construction, with 200,000 houses forecast to be built over the next six years, but all that progress is being undermined by Phil.
“It’s time to face the facts and get out of the way, Phil. You’re not doing what you promised, you’re stuffing the housing market and New Zealanders are paying the price.”
Housing Minister Phil Twyford confirmed three days ago that no income limits will be applied to prospective KiwiBuild buyers but today, under questioning, he said he had not yet decided about that, National’s Housing spokesperson Judith Collins says.
“Phil has campaigned on - and insisted – that he will build affordable KiwiBuild homes for first home buyers, but without income limits there is no way that he can ensure that these houses go to those who really need them.
“This could mean a New Zealand born couple who have spent their working lives offshore and have a $300,000 deposit could be eligible for a KiwiBuild house even though they have never worked or paid taxes in New Zealand – most Kiwis would agree that’s not fair.
“The taxes of hard working carpenters, plumbers and electricians who have lived and worked in New Zealand should not be used to subsidise those that are wealthy enough to buy a home.
“His shifting-sand decisions hit another problem today when he could not answer whether KiwiBuild home owners will be allowed to rent out rooms in their KiwiBuild house. He also had no clue as to how development contribution costs would impact the KiwiBuild home buyer.
“Auckland Council is considering adding $50,000 to the development cost of each new housing section. This cost would be dumped on developers and on Kiwi families and Phil has no plan to deal with this either.
“MBIE officials have said that an income of around $114,000 would be needed to buy a KiwiBuild home. Now that the costs will be rising by $50,000 per section, we can expect that Phil Twyford’s own estimate of $60,000 income needed is grossly inaccurate.
“He then went on to mention today that potential buyers might need an income of $170,000 with no explanation. Confusion reigns.
“After nine years in opposition and Kiwi taxpayers stumping up $2 billion for Labour’s flagship scheme, Phil Twyford should have these details,” Ms Collins says.
Labour’s admission there will be no income limits for people who want to buy KiwiBuild houses will mean low income New Zealanders will help subsidise homes for the wealthy, National’s Housing and Urban Development spokesperson Judith Collins says.
“Labour has its priorities badly wrong. It is heaping more and more taxes on New Zealanders just to pour more money into bad spending ideas like $1 billion for diplomats to keep Winston Peters happy.
“In the case of KiwiBuild the Government is subsidising the building of houses, though admittedly only a handful so far, and it is subsidising the sale.
“Those houses are then going to be sold via a ballot, with the only criteria being the ballot winner must be purchasing their first home. That’s it. That means there’s potentially hundreds of thousands of taxpayer dollars going into each house and straight into the pockets of whoever is lucky enough to win the ballot.
“That means someone could be earning twice the average wage and still get a taxpayer subsidised house. How is that fair and how is that a good use of taxpayers’ money?
“It’s not. It’s taking money off everyone, some of whom need it to make ends meet, to help a few people get ahead.
“National’s targeted first home buyers package helped 31,000 New Zealanders into their first home through first home buyers grants and welcome home loans. That support went to those who needed it and would have helped another 81,000 people over the next four years.
“That was fair and targeted. Labour’s approach is a free for all which will help only those whose names are drawn from a hat. It’s a bad idea and they need to urgently rethink it, along with the rest of the policy.”
Housing Minister Phil Twyford’s KiwiBuild pipedream has been dealt another blow, with the Government’s own experts saying it will have only half the promised impact on the housing market, National’s Housing and Urban Development spokesperson Judith Collins says.
“In Budget 2018, Treasury experts slashed their forecast rate of progress on KiwiBuild, from $5b over five years to just $2.5b.
“That means KiwiBuild – the policy the Government promised would solve the housing shortage – will contribute half as much to the building of new houses as Mr Twyford has spent years claiming. It’s also the third Government Ministry to tell Mr Twyford he’s wrong.
“Mr Twyford has now been told by the Reserve Bank that the impact of KiwiBuild on residential construction will be offset by a halving of private sector capacity, by MBIE that he won’t deliver the KiwiBuild houses for the $2 billion he claimed and now by Treasury that KiwiBuild is falling apart.
“But he’s arrogantly said all those experts are wrong and he’s right.
“The KiwiBuild policy, along with so much of this Government’s economic plan, has been dealt such a series of blows to its credibility that since Christmas, both the construction sector and the Government’s own experts have lost faith.
“In the last few weeks alone Mr Twyford has been forced to admit he won’t build the number of houses he promised, he won’t build them for the total cost he claimed and he won’t be able to sell them for the price he promised.
“To make matters worse, confidence in the residential construction sector is waning because the Government is making it harder to find skilled tradespeople to build the houses as well as to get the credit to pay for the houses.
“And that’s a direct result of bad government policy like restrictions on foreign investment, Housing New Zealand having to borrow an extra $2.9 billion which sucks up credit which would otherwise have been available to the private sector, and an incomprehensible immigration policy which makes it harder to recruit skilled foreign workers.
“This is typical of a Labour Government spend and borrow more but deliver less. The Government’s housing plan is a hoax and Kiwis are paying the price.”
The Government has hiked the price of its three-bedroom KiwiBuild houses in Auckland by 8 per cent, or $50,000, in spite of average house prices growing by less than 1 per cent, National’s Housing and Urban Development spokesperson Judith Collins says.
“With the market flat to falling as a result of the massive building boom underway under the previous Government, and Auckland prices rising only 0.8 per cent in the year to April, Housing Minister Phil Twyford is desperately trying to keep his flailing KiwiBuild policy alive.
“But to do that he’s breaking his promise to deliver those houses to New Zealanders for a maximum of $600,000 per house, to ‘build’ 100,000 of them for $2 billion and to use the purchasing power of the Government to bring prices down.
“In actual fact he’s pushing prices up faster than the wider market, he’s blowing his budget and he’s stuffing the housing market to do it.
“Mr Twyford even had to admit today that in spite of his unequivocal promises to New Zealanders he hadn’t even bothered to check his costings, in spite of the fact they were developed two years ago, until just two weeks ago. That’s negligent, Phil.
“And when someone else checked for him he realised his numbers were incorrect and as a result the prices of his KiwiBuild houses had climbed $50,000 to $650,000. That’s bad news for homebuyers, Phil.
“And to top it off, rather than fronting up he tried to sneak the price increase out in his plea to the private sector for help. That’s tricky, Phil
“What has Phil Twyford been doing for eight months, aside from raising fuel taxes?
“So far all he has to show for his flagship KiwiBuild hoax is a few purchase agreements for houses already being built. That’s certainly not adding to overall supply, Phil
“In the meantime confidence in the housing market is dropping, developers are balking at working with a Government which clearly doesn’t know how to do anything but throw cash at a problem and the rate of house building is slowing.
“Phil Twyford promised to make it easier to get into houses but so far he’s doing the exact opposite.”
New Zealanders will be shocked to learn the Government has hiked the price of its KiwiBuild houses by $50,000 in just three days – and that it either didn’t know or kept quiet about it, National’s Housing and Urban Development spokesperson Judith Collins says.
“Three days ago the Government’s capitulation on its promise to build 100,000 houses itself culminated in its plea to the private sector for help – its Invitation to Participate.
“That alone contained news to New Zealanders – including Phil. That the Government wouldn’t ‘build’ 100,000 houses as Phil promised, and that it couldn’t ‘facilitate’ them either, for the $2 billion Phil swore was enough.
“Oh, and the bigger houses will also sell for up to $650,000, rather than the $600,000 cap he’s committed himself to.
“Phil claims the document published this week was poorly worded but he can’t argue with the words that came out of his own mouth when he admitted this morning the price of a one bedroom KiwiBuild/buy/facilitate apartment is actually $50,000 more than his own document says.
“Here’s something that won’t come as a shock to anyone: Phil Twyford’s grand KiwiBuild plan is a hot mess.
“He can’t build the number of houses he promised, he can’t do it at the cost he promised and he can’t sell them at the price he promised. And let’s not forget he’s stuffing the residential construction market in the process.
“What else aren’t you telling us Phil? And what can New Zealanders expect next? And how can developers trust you? These are serious questions and there is so much at stake.
“Another day, yet another broken promise.”
The Government’s invitation to private developers to participate in KiwiBuild is a cry for help from a Minister who’s leaving a trail of U-turns and broken promises in his wake, National’s Housing and Urban Development spokesperson Judith Collins says.
“From a cast-iron election pledge to build 100,000 additional houses itself, the Government’s KiwiBuild plan has contorted into nothing more than going to private developers with a subsidy and a plea for help.
“In Opposition Phil Twyford never wavered. He said the previous Government had failed but he knew how to build the houses and he’d build 100,000 of them - for $2 billion in 10 years.
“Well it’s clear that he can’t and he won’t. His own officials are telling him that, though he’s still trying to bluster his way through what’s fast becoming a mess.
“And this is not the only 180 Mr Twyford has done, with Kiwibuild house prices now being based on the number of rooms.
“As an election promise, New Zealanders were told that KiwiBuild/buy/facilitate houses in Auckland would be priced at between $500,000 and $600,000, and apartments would be priced at $500,000 or lower.
“But the Government’s plea to the private sector, its Invitation to Participate, now says that a one bedroom dwelling will go for $500,000, two bedrooms $600,000 and three bedrooms $650,000.
“What a mess. Phil Twyford has stuffed the residential construction market and now he’s complaining the market’s stuffed. The private market was booming, with 200,000 new homes forecast over the next two years, before Mr Twyford decided to steal away resources and houses from the private sector to label them ‘KiwiBuild’.
“The Government is doing nothing but make it harder for New Zealanders to get into a home. Another day another broken promise.”
The Government’s KiwiBuild mess continues to unravel as Phil Twyford further distances himself from his promise to build 100,000 houses and with confirmation he’s going to blow his $2 billion budget, National’s Housing and Urban Development spokesperson Judith Collins says.
“Media reports show that included in the Government’s plea to the private sector for help, its Invitation to Participate, is the admission the Government won’t ‘build’ 100,000 houses as promised, but will attempt to ‘facilitate’ them.
“So Phil Twyford has gone from promising to build 100,000 no ifs or buts to building some and buying some to now saying they’ll ‘facilitate’ the houses instead, whatever that means.
“The document also states that ‘there is insufficient funding for the Crown to deliver all 100,000 KiwiBuild dwellings by itself’. That’s in spite of Mr Twyford repeatedly assuring New Zealanders that $2 billion would be enough.
“That’s yet another broken promise from the Government, proof that its budget was always unrealistic and bad news for the other priority areas which will lose funding thanks to Mr Twyford’s failure to deliver on his ill-thought out pipe dream.
“To claim any success and keep its promise, the Government needs to build 100,000 houses over and above what would have happened already, but things seem to be going backwards.
“Instead, it’s raising the white flag and wrecking our building industry in the process.
“The mis-named KiwiBuild is a mess. The only thing that’s been consistent about it has been Phil Twyford’s constant wriggling out of his promises because he can’t possibly meet them.”
Housing Minister Phil Twyford’s gloating over the fact his KiwiBuild dream has now delivered frames on 18 houses reinforces how futile his efforts have been and how many questions remain, National’s Housing and Urban Development spokesperson Judith Collins says.
“New Zealand is in the middle of one of the largest residential building booms in our history - 31,245 houses were consented last year alone. National left office with MBIE forecasting 200,000 new homes over the next six years, without having to be subsidised by the taxpayer.
“On top of that, National was targeting support at first home buyers who needed it. Our support for first homebuyers helped 31,000 people into homes and during the election we pledged additional support to a further 80,000 people over the next four years.
“Our plans to build more houses and our support for first home buyers were targeted, transparent and making real inroads.
“Phil Twyford’s KiwiBuild story has changed so many times it’s become hard to understand what the Government plans to do but we know they think they’ll build and buy 100,000 homes over 10 years.
“We welcome any new houses but for the Government to claim the credit those 100,000 need to be over and above what was happening already and so far they’re not.
“The McLennan Development is underway already, with hundreds of houses built and being lived in or under construction. Now the Government is picking up the tab and who would be surprised to hear the developer is taking the Government up on its offer of a subsidy?
“We know Mr Twyford is going round Auckland asking developers how many of their houses he can buy to meet his targets when all the official advice is he will simply divert builders from private developments to government subsidised ones, and add nothing to overall supply.
“Those houses are then being subsidised again when the Government sells them to ballot winners for less than the taxpayer paid in the first place. That’s a very quick way to burn taxpayer’s hard earned money.
“To make matters worse, while National was targeting support for first home buyers who met strict criteria, including income thresholds this government has said its subsidised houses will be sold to whoever wins their ballot. So someone could be earning hundreds of thousands of dollars and get a twice-subsidised house from the Government while a family struggling to get a deposit together will get nothing.
“That’s a poor use of taxpayer cash and shows how desperate Mr Twyford is getting, how little thought has really gone into the policy and how hard he is finding it to make his pie in the sky plan work.”
The Prime Minister and her Housing Minister have been left red-faced and scrambling to explain critical statements Ms Ardern made when in Opposition about plans to build thousands of houses on the Unitec Site in Auckland.
“When reminded of Jacinda Ardern’s statements last year criticising the suitability of the Unitec Site for the then planned 2,600 dwellings, Phil Twyford could not address the concerns raised by his boss.
“When the National Government first announced this major housing development for the Mt Albert electorate, the local MP, Jacinda Ardern, told media ‘there are questions around what kind of urban design will that project have; will it have an effect on traffic; will it overflow our schools?’
“Poor old Phil Twyford had to cover for his leader, telling Parliament that Ms Ardern has been continuously supportive of the Unitec development and she was ‘excited for her constituents about the investment in their community’.
“It’s extraordinary that Ms Ardern was concerned about National’s proposals for 2600 houses, yet seems fully in support of Mr Twyford’s plans for up to 4000 houses on the very same site.
“Jacinda Ardern and Phil Twyford are back-flipping like Olympians – and going for Gold,” Ms Collins says.