Parliament’s Finance and Expenditure Select Committee has been told in public hearings this morning that Housing Minister Phil Twyford is opposed to the Overseas Investment Bill being applied to new builds, National Party Finance Spokesman Steven Joyce says.

“While submitting to the Committee the Chair of the Real Estate Institute of New Zealand Dame Roseanne Meo provided details of a meeting with Minister Twyford where he reportedly expressed his concerns about the negative impact the Bill will have on new housing developments in Auckland, and that he was opposed to the Bill’s provisions being applied to new builds,” Mr Joyce says.

“The Minister’s reported views are correct. A number of submitters to the Committee, including Government Housing Report co-author Shamubeel Eaqub, have made the point that provisions in the Bill will make it difficult, if not impossible, to attract sufficient numbers of investors into large new property developments.

“Most apartment complexes and large property developments in Auckland are challenging to get funded. Artificially restricting the pool of investors will simply slow down and stop large developments and therefore limit housing supply.

“It is ironic that one Minister in the Government is trying to increase the supply of new housing while another Minister is taking steps that will reduce the supply.

“Mr Twyford needs to have the courage of his convictions and say in public what he is telling people in private.

“This Bill will reduce investment in the housing market, and reduce the number of homes being built. He needs to say so.”

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