Taxpayers Liable for Second-Rate Development Risks
The New Zealand Taxpayers’ Union questions the Government’s decision to double down on exposing taxpayers to risky development schemes following the announcement that they plan to invest a further $159 million in projects at risk of failure.
Taxpayers’ Union Campaigns Manager, Callum Purves, says:
“We all recognize that the housing shortage is the single biggest factor in Kiwis’ increasing difficulty in getting a foot on the property ladder, and we welcome genuine attempts to try and alleviate this crisis.
“However, making taxpayers liable for propping up the developments that banks deem too risky to fund themselves is a recipe for disaster. The reason that banks won’t fund these projects is because they lack confidence that they can recoup any of their investment, so how can the Government justify being so reckless with hard working New Zealanders' taxes during a cost-of-living crisis?
“If the Government is serious about tackling the housing crisis, it needs to focus on removing barriers to supply, rather than doubling down by putting even more red tape of development with their proposed Resource Management Act replacement.”