Twyford Responds

Twyford Responds

Written By: Date published: 12:00 pm, July 13th, 2015 – 324 comments
Categories: Economy, labour, overseas investment, phil twyford – Tags: , ,

Labour Housing spokesperson Phil Twyford has responded on Radio NZ and in this morning’s NZ Herald to accusations of racism in the release of data that shows massive foreign speculation in the Auckland housing market. He’s supported by NZ First leader Winston Peters who notes that his party were also labelled as xenophobic and racist when it raised the problem of overseas buyers:

“We’ve been saying for a long time that the housing problem in Auckland is one of supply, and when it comes to supply what’s exacerbating it (is) massive demand inflated from abroad and offshore buying. That’s the fact and trying to deny it is just drivel.”

While many are genuine in their unease about the identification of the ethnicity of the primary group of foreign speculators, it’s deeply ironic that Twyford is being trolled by righties who were only too happy about National’s Orewa dog whistle and the blatant racism of the Kiwi, not Iwi billboards. But the right have been well and truly gazumped by Labour this weekend, so their panicked response is understandable.

Also in today’s Herald, the editorial makes reasonable points about the need to find out exactly what is really going on, saying “… the response must be carefully calibrated. It would be easy to follow Australia’s lead and require overseas investors to build new houses. This makes some sense in increasing supply rather than adding to demand.”

This is echoed by BNZ chief economist Tony Alexander who reckons that NZ “should as soon as possible adopt Australia’s rules restricting foreign buying of anything other than new housing unless resident for 12 months.” 

Labour’s approach is clear and appropriate:

  • An immediate ban on foreign speculators buying residential property. If you want to own a house in NZ you should move here or build a new one.
  • An immediate investment in a  government-led affordable housing programme (the Kiwibuild program)
  • Move away from the negative proposal to flog off parts of our state housing stock. Instead, build more state houses.

Here’s Phil Twyford’s opinion piece in the Herald:

The Weekend Herald’s report ‘We’ve got Chinese buyers’ certainly sparked debate.

As Labour’s housing spokesperson I’ve had a swag of messages in response to my comments that the leaked real estate sales data showing buyers of Chinese descent purchased almost 40 per cent of houses in a three-month period strongly suggests offshore Chinese investors have a big presence, given the local Chinese community is only 9 per cent of Auckland’s population.

Aucklanders from all walks of life have offered their views. Many have welcomed what they see as a long overdue debate. Others, notably in the Twittersphere, have been quick to accuse me of racism because I have talked about a particular ethnic group.

But here’s the thing. We do need to have a mature public debate about Chinese foreign investment in New Zealand real estate. Especially when the Government has refused to set up a register of foreign ownership and make it public.

Australia, Singapore, Hong Kong and other nations have enacted restrictions on foreign buyers in recent years.

When the sales data also pointed to a big presence of offshore Chinese investors, Labour decided it was time to talk about this. However uncomfortable it may be, the sales data reinforces what so many Aucklanders have thought is going on.

It is simply not good enough to try to shut down an important public debate with allegations of racism.

The other criticism we’ve copped is that analysing the surnames of house purchasers doesn’t tell us whether they are local or foreign, and that you cannot logically infer from the numbers anything about the presence of offshore speculators.

We stand by the surname analysis. It draws on data from the Census and the electoral roll and predicts with about 95 per cent accuracy ethnic origin based on surname.

Surnames of course don’t tell us anything about citizenship or residency. But no one has yet suggested a plausible alternative to how come the 9 per cent of the population who are Chinese New Zealanders could be responsible for 40 per cent of the house purchases. Did the other 91 per cent of the population stay out of the market? Given all the other information at hand, we continue to think it strongly suggests overseas speculators are a big presence.

Labour’s policy is to ban all foreign buyers. We don’t see any benefit to Kiwis of allowing speculators on the other side of the world to trade our houses for capital gain.

We would not be arguing over the leaked real estate sales data if the Government had agreed to set up a register of foreign ownership and make it public.

The recent announcement that foreign buyers will have to register with IRD will generate the information but the Government still won’t agree to a register open to public scrutiny.

The Government doesn’t believe the sales data. I say it is time to put up or shut up.


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