Summary
Labor's recent housing policy announcement faces significant criticism for its perceived ineffectiveness and lack of credibility. Kieran McEnulty unveiled a rent-to-buy scheme aimed at helping public housing tenants save for a home deposit, proposing that $100 a week from their subsidized rent would contribute to a trust account for a future down payment. However, critics question the feasibility of this initiative, pointing to Labor's poor track record in housing development, particularly referencing the failed KiwiBuild program that promised 100,000 homes but delivered only 2,003.
The discussion highlights concerns about the practicality of the new scheme, especially for tenants in areas like Auckland, where rising costs make home ownership increasingly unattainable. Critics argue that the policy may not adequately address the needs of young, working-class individuals who are already struggling to save for their first home. The historical context of housing policies is also brought into play, with comparisons made to past successful initiatives that are no longer applicable in today's economic climate.
Overall, the announcement is seen as a continuation of Labor's problematic approach to housing, with skepticism surrounding their ability to deliver on promises made. The conversation underscores a broader frustration with the current political landscape and the perceived failures of both major parties in addressing critical issues like housing and law enforcement.
Show Notes
When I look at Labour's campaign and I look at National's campaign, it's like, look, I'll do it for you next time. Seriously, when something is being done so badly, you think, you know what? I can do that so much better. They've had shocking campaigns, both of the main parties. Just negative, silly stuff. And yesterday, Labour had an absolute clanger. Of all the issues and all the policies that Labour could have come up with to attract voters, to point out deficiencies in the Coalition Government, why on earth did they have to decide on housing as one of their last big pushes before the election? You'll have heard Kieran McAnulty yesterday announcing a new rent to buy scheme that would allow public housing tenants to save for a house deposit. $100 a week from their taxpayer subsidised rent would be credited towards a house deposit with the funds held in a trust account. The scheme would help people save $5,200 a year, Labour says, and allow tenants to accumulate enough to put down a deposit on a home. Public housing tenants would have the option to buy the home they're living in. Labour said that for each house sold, three more would be built in its place. Really? What's your track record like on building houses, Labour? Pretty damn poor. Three more would be built in its place? Labour would have been turfed out after one term were it not for Covid last time round because of their failures of execution when it came to policy. One of their biggest embarrassments was KiwiBuild, the building of houses. 100,000 houses were promised. Remember that? And everybody went, oh, I don't think so. No, no, I think you've got that wrong. And it wasn't just people like me having a rick and going, I don't think you'll be able to do 100,000, it was people in the industry going, no, that's not going to happen. No, they knew best, Labour did. They went ahead, they promised it. 100,000 houses would be built for hardworking Kiwis. Total amount of houses built: 2,003. Quite a big differential. 100,000 promised, 2,003 delivered. So forgive me if I call BS on Labour's ability to build three houses for every one sold, unless they go down the Kāinga Ora route where they damn near bankrupted the country building houses at any cost. We've only just got Kāinga Ora under control after the build at any cost order was given by the last Labour government. There are two policy areas Labour should be staying well away from: law and order and housing. They are proven failures in both areas, unless they're willing to spend anything at all and lock other young people out of the housing market by buying up, spending money we don't have, and paying it down on the never never. This latest announcement, if you are living, say, in GI in Auckland in a state house, which is being gentrified, a little suburb that's being gentrified, how long would you have to live there before you'd saved even for a 5% deposit? If you're living in Greymouth in a Kāinga Ora house, you might in seven and a half years have enough to put down a 5% deposit loan on your home. But it's sticking two fingers to hardworking young people who are working and who are renting and who are saving for their first home. And it is nothing like the capitalisation of family benefit that McAnulty referred to when he was talking to Heather du Plessis Allan last night. "There'd be many people listening to your show who bought their home or their parents bought their home by capitalising the child benefit. And that set them up for life. Now, we haven't had a scheme like that for a very long time. And the announcement today to expand the 5% deposit and also have a scheme to actually get Kāinga Ora tenants out of state housing, out of a poverty trap and into home ownership, I think is something that will benefit the whole country. And I reckon it'll actually get broad support across the political spectrum." Will it? I'll be fascinated to find out. If we look at capitalisation of the family benefit, that cam
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