It's Your Money They Are Wasting
We have posted several pieces on the NZ Government's "housing policy". A recent comprehensive article dissects the situation--both past and present. As a result the Government is in a messy mess.
We have made reference to the inexperience and general incompetence of the Housing Minister, Phil Twyford. His only real world experience to date has been in prancing around the world with Oxfam. He is a big-vision man with small-time experience or wisdom in the real world. That's been problem Numero Uno.
Secondly, he and his colleagues belong to the socialist mindset that tax payer extorted money thrown at an idea or project can solve any problem. By spending money, great things will magically come to pass. There appears to be no commitment to hard nosed, brutal critical evaluation and risk management in policy development. There appears to be very little, if any, self-critical scepticism. By throwing money at the so-called "housing problem" all obstacles will be overcome. Public announcements of "progress" seem to represent little more than boasts, and "big-noting". What we have been left with is the state's half a dozen Kiwibuild houses which few, if any want to buy.
The houses that have been built in the programme thus far have turned out to be purchased by those who meet certain criteria--in particular they are "middle class" and can afford them. The question is begged: what on earth is the state doing building such houses for those who can buy them pretty much everywhere on the open market--particularly if they are willing to buy already existing houses in areas that are "middle class".
Here are a couple of excerpts from the article by Henry Cooke, published in The Guardian.
MIDDLE-CLASS WELFARE: JULY 2018 - SEPTEMBER 2018And . . .
As the fiscal year began in July, Twyford revealed who would be eligible to buy KiwiBuild homes.
Income caps had in fact not been a part of KiwiBuild up to this point, but once they are announced they are immediately criticised for being too high.
Couples earning up to $180,000 a year would be allowed to buy KiwiBuilds, as would individuals earning up to $120,000. There would be no "asset test" as such, but only first home-buyers and an asset-tested group of "second-chancer" divorcees would be eligible.
Commentators call it middle-class welfare. National describes the ballot system to be used as a "lottery". It becomes clear from advice released under the Official Information Act that income caps that high are needed, given how expensive the KiwiBuild homes are. But the public seems very interested, as it often is in middle-class welfare: 36,000 people register interest in the first three weeks – all when just 18 homes are scheduled to be completed any time soon.
New Zealands banks rush to offer competitive KiwiBuild deals, seemingly eager to latch onto a massive outpouring of consumer enthusiasm. There are expected political bumps, but Twyford is clearly very happy with just how popular this thing is proving to be – and how real it suddenly feels. This won't last.
THINGS FALL APART: OCTOBER 2018 - JANUARY 2019
On October 27, Twyford and Prime Minister Jacinda Ardern welcomed the first 18 families into the first batch of KiwiBuild homes in McLellan, Papakura. One of the first couples is happy to speak to the media: Fletcher Ross and Derryn Jane.
National MP Judith Collins, the local MP, almost immediately mars the narrative. She tweets a conservative troll account that has unearthed Ross' Instagram account and screenshotted a post where he mentions "204 countries + 7 seas and I had the privilege of meeting you". This is a meme about the chances of meeting a partner, but on first glance it looks like the couple have managed to get to that many places on their OE, and Collins pounces, tweeting "204 countries – maybe doesn't need taxpayer support ... #justsaying".
A flurry of articles followed. Twyford attacks Collins for "bullying" the couple. She said any expenditure of taxpayer money deserves scrutiny and she had nothing against the couple. No other KiwiBuild homeowner has since talked to the media in a sustained way, frustrating any attempt at positive news coverage.
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