Leading economist wants government

Leading economist wants government

A leading economist in New Zealand, ShamubeelEaqub has said that the wants the government to make provisions for doubling the state housing stock from 60,000 to about 120,000 houses in the Budget.

Eaqub said, "This Government has shown little initiative on this front but I certainly hope housing will be big in this Budget because moves so far have been too marginal and too incremental to be effective. To explicitly ask the Government to step in and build houses and related infrastructure flies in the face of current thinking, yet the situation is dire."

Experts and economic observers have said that it is highly unlikely that the budget will include such strong measures because of current economic conditions. Eaqub said that the prices of homes in the country are among the highest in the world compared to incomes. The construction pace is slow and the houses are becoming unaffordable for many in the country.

He pointed out that there is a large role for the government as the market is not responding fast enough to the challenges. He said that Fletcher Building's foundations are a good example as a state house builder for positive commercial benefits.