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Source: Taxpayers Union

The New Zealand Taxpayers’ Union is slamming the Government’s new $350,000,000 fund to underwrite “at risk” developments. Like the infamous KiwiBuild scheme, the fund will bail out developers that building housing at a loss.Taxpayers’ Union spokesperson Islay Aitchison says, “This policy is bad public investment, by design. The idea is that the Government steps in with the public purse when, and only when, no one in the private sector thinks a development is a good bet.”“There could not be a worse time for schemes like this. New Zealanders are taking on $1,125 in public debt every second, totalling a projected $200,000,000,000 in 2024. The Government should be reining in spending, not going out of its way to fund poor-value projects. This will also cut into money otherwise available for productive stimulus.”“If the Government wants to make housing cheaper, it should have followed through on its election promise to reform the Resource Management Act 1991. Effectively expanding KiwiBuild and pouring taxpayers’ money into failing developments is not the solution.”