An Economic Solution for Northland

 

 

I doubt many of you have read the 2014 Regional Economic Activity Report, but, after another six years of a National MP in Northland, we have reached the heady heights of being rated the worst economic performer in New Zealand. In the report Northland is noted for the highest rate of unemployment and the lowest average household income in New Zealand.

There are only 55.6 people out of every 100 employed in Northland; even Gisborne with 58.2 has more than this. We also have an old population because old people are migrating here to retire while our young adults are leaving to seek opportunities they cannot find in Northland. The Far North actually had negative population growth over the last seven years (Census 2013).

In the race to the bottom Northland is winning, and successive National MPs have let this happen.

One of the biggest problems currently faced by Northland has been the introduction of 20 percent deposits required by prospective home owners, brought in during the last three years of National to control the Auckland housing market. What this has meant for low income families in Northland is that they can never buy their own home, as to do so they would need a 100 percent mortgage.

Saving money with the lowest average household income is pretty much impossible. In Kaitaia and Kaikohe there are 3-bedroom homes for sale for about $135,000, while at repayments equivalent to $270 rent per week you could borrow up to $187,000 fixed at 6.4 percent for 2 years. This situation to me is morally wrong, and Northland families should not have been affected by this new deposit law. What has happened though is that under National, Northland families again get bashed by economic policy designed to help Auckland.

If elected, one of the first things I will try to do as Focus New Zealand’s representative is have this law removed. If the law was introduced to control the housing price in Auckland then I would simply introduce a targeted bank law for Auckland houses: if you want to buy a house in Auckland you need a 20 percent deposit and you will pay an additional 1 percent interest on your mortgage above the rest of the country. This is not rocket science and would allow people in Northland to own their own home.

Give Ken Rintoul your electorate vote and vote for Northland.

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