Housing finance plan thought too costly

Press, 27 February 1980, Page 3

Housing finance plan thought too costly

PA Wellington If the Government' did what the Opposition suggested and allocated the Housing Corporation a further $lOO million for housing finance, the money would have to be found by increasing taxes or diverting funds from elsewhere, said, the Minister of Housing (Mr Quigley) yesterday. Replying to a statement by Labour’s shadow Minister of Housing (Mr F. M. Colman) that extra funds for housing were necessary, Mr

Quigley said it was neither possible nor desirable for the Government to provide all the housing finance required. “However, in providing 14,500 loans in the current financial year to enable, people, to purchase new and existing houses, the Government is making a significant contribution,” he said.

“Mr Colman’s statement reminds me of Labour’s housing policy during its administration between 197275, which was a disaster.

“For example, during those three years, the price of sections in Christchurch rose from $4700 to $11,780.

“At present the prices of sections are stable, while the increase in the price of an existing home has risen only 5.4 per cent during the last year. • “This shows that at present 'we have relative price stability, something that the last Labour government was unable ’..To achieve,” Mr Quigley said.