Finance Minister Bill English said the Government was looking at housing in much the same way as previous administrations had focused on reform of other parts the economy, such as electricity.
English, in a speech to the Auckland Chamber of Commerce today, said the government spent $2 billion a year on accommodation subsidies, adding that about 60 per cent of rentals are government subsidised. In addition, one in 16 Auckland houses are government-owned.
"Housing is our biggest asset class and our biggest market, with housing stock worth eight times the share market," English said.
Over the past 25 years New Zealand had gone through extended processes to reform the electricity, telecommunication and financial markets.
"In each case it took years to understand the impact of existing rules, and how to change them to achieve a more efficient market," he said. "Now we are addressing housing in the same way."
English said there was no "quick fix" to Auckland's housing shortage but that the Government could spend money, if the need arose, to deal with the city's population growth.
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Bill English sends warning to Auckland on housing after council vote
Finance Minister Bill English has told Auckland that it needs to "solve obvious problems faster" after Wednesday's council vote to withdraw its plans to "densify" some Auckland suburbs.
In his first major economic speech of the year English said it was critical there was enough scope to increase the housing supply in the city, after councillors voted 13-8 to withdraw the maps they had presented as part of the Auckland Unitary Plan process, which would have increased the area where three storey accommodation could be built.
"Exactly how that is delivered - the combination of up and out - is something Auckland should decide for itself," English said in a lunchtime speech to an Auckland business audience.
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