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Home / New Zealand

Letters: Price hikes and the property bubble

NZ Herald
19 Apr, 2021 05:00 PM8 mins to read

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Shortages of supply in both consumer goods, including food, and residential housing have driven up prices totally out of step with median wage rises. Photo / Greg Bowker

Shortages of supply in both consumer goods, including food, and residential housing have driven up prices totally out of step with median wage rises. Photo / Greg Bowker

Opinion

Epic implosion

Your editorial (NZ Herald, April 16) on consumer goods' inevitable price hikes and a - possibly inevitable too - collapsing of house prices is what many have seen coming for a long time.
Shortages of supply in both consumer goods, including food, and residential housing have driven up prices
totally out of step with median wage rises, but one thing is for sure; when the NZ housing price bubble bursts, there will be total mayhem, because consumables (including food) will become even more unaffordable, just when existing home debts are going to be unserviceable.
This is why I don't understand that the Government is not planning and implementing substantial emergency fund buffers, from where this inevitable popping of the property balloon can be alleviated and from where its fragmentation result can be softened, rather than an implosion of epic proportions.
Whilst we hope the Covid bubble will eventually fade away, the property bubble is so over-inflated, that it almost has to pop one day soon. Even if it doesn't happen tomorrow, the Government will have to find ways to minimise excessive spending in certain and obvious areas, and redirect these funds into a safeguard for the entire nation. Not much and not many will be spared once our precious property balloon has run out of gas.
René Blezer, Taupō.

Fertile land

Ordinary citizens have been saying for years that "urban sprawl is swallowing up New Zealand's best vege-growing land at a dramatic rate, threatening our ability to feed ourselves" (NZ Herald, April 16). So why has it taken so long for a Government report, Our Land 2021, to notice?
Once this land is gone it's gone, permanently. Has anyone considered how it will affect climate change when a fleet of aircraft and ships will be needed to import our fresh produce? And how our health will suffer when the cost of our fruit and veges rise?
Residents of the most fertile growing areas around Auckland have seen the land being swallowed up by new subdivisions, with still more land, including wildlife habitats, being razed for still more building.
And yet there is still, apparently, a "housing shortage". Tell that to the residents of, say, Pukekohe in the south and Whenuapai, Hobsonville, Kumeu, Huapai, Ōrewa, Silverdale in Auckland's northwest which are an ocean of close-packed new houses and commercial buildings, with thousands more being built.
Anne Martin, Helensville.

Partisan advice

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In the lexicon quango means "quasi-autonomous non-government organisation" – and describes the Climate Change Commission (CCC) to a T.
Reading the 188-page report is interesting and several idiomatic points arise. The words "fair" and "equity" seem CCC favourites, as is "Aotearoa" (mentioned 635 times) instead of "New Zealand", (mentioned twice). Also, hard to find in this report is consideration of "innovation" and the contribution it will make to the climate change fight.
As an example, the Otago Daily Times reported on the innovation of a potential vaccine to reduce the greenhouse gases of cows by 30 per cent. Similarly, reductions can also be made by changes in stock feed. Later, we have the innovation of seaweed used as feed to reduce methane emissions by cows. Not forgetting our sheep, we have the innovation of breeding sheep that produce significantly less methane.
New Zealanders are innovative, and our ideas and adaptions deserve consideration before we panic, slash stock numbers by the CCC suggested 15 per cent; thus killing the golden calf, the backbone of the NZ economy.
The quality of the report seems limited by the perspectives of the quango and it would be harmful if the NZ Government created policy based on partisan advice.
Mike Schmidt, Sunny Hills.

Kindness to nurses

Whilst the district health boards (DHBs) negotiate nurses' pay rises, ultimately the government provides the funding, to cover the increases negotiated, with the alternative being a reduction in levels of health services.
The nurses' current collective agreement, expired in July 2020 and, especially with what the profession has been facing in the past 12 months with the Covid pandemic etc, a pay rise averaging well in excess of 1.38 per cent is well deserved. An offer at 1.38 per cent is an insult.
We are also aware that hospital boards are struggling to find staff, with many operating with significantly fewer staff than it is sometimes safe. This offer will do nothing to attract more to the profession or retain existing nurses.
Many nurses earn significantly less than other government workers, such as teachers, and for the government to advise the DHB's that they must contain future salary increases, which obviously they did, is just not being kind which our PM likes to promote.
Unless a more reasonable offer is made I believe that nurses will go into battle for better terms and conditions which could be at great cost to the community.
Mike Baker, Tauranga.

Te Huia potential

The average number of passengers on the new Hamilton to Papakura rail service is only 36 per trip.
Why not offer a $5 round trip to those with a SuperGold Card? This would provide a triple benefit, more income for New Zealand Rail; a means of brightening up the day for the elderly; and some extra business for the retailers and cafes at either end.
Bob Wichman, Botany.

Town Hall maul

We seniors were looking forward to our evening of symphony music at the Auckland Town Hall. But wait, we need to be escorted to a staff lift because the main Town Hall lift is out of order.
After a lovely concert, and in good spirits, we descended to the car park to our mobility park. The lift and pay machine at the foot of the steps have not worked for months.
So we headed to the two machines beside the Aotea Centre steps, but only one was in service for the large crowd paying for their parking.
Something malfunctions, the queue grows restless, but the parking warden is friendly and helpful. Eventually we get to the machine to collect the necessary ticket to exit the parking garage.
I am left wondering how the wheelchair-bound man in front of me got to the garage?
The warden had no answer as to why the malfunctioning machines are in this sorry state.
Auckland Transport and Auckland Council, what are you doing about this?
Chris Berman, Henderson.

Core services

Yesterday, I was involved in my weekly delight in taking a grandson to afternoon swimming lessons and then rugby practice.
This soured when surrounding the city Tepid Baths were cones prohibiting two-thirds of usual available parking, including disabled parking by the pool. On inquiring, one discovers that Auckland Transport has some new scheme to take out car parks but no one actually knows what is happening other than disruption will result.
Next, to Western Springs for rugby with about 200 children and adults enthusiastically involved in rugby practice. Unfortunately, the council toilets are closed.
I still had an enjoyable time with my grandson but what do we pay our rates for? To allow a non-elected, non-accountable council company to deny pool users parking access. Then to allow elected accountable council operations to ignore their obligations to provide necessary toilets? What has happened to basic and core services?
Gary Gotlieb, Herne Bay.

Vicious cycle

I assume the various opinion writers promoting bicycles on the Harbour Bridge have absolutely no intention of actually pedalling over the bridge themselves on a regular basis.
The steep grade from either direction is daunting, not to mention frequent high winds and rain.
I would like to know how any projected number of users could even be calculated to justify any further squandering of taxpayers hard-earned money.
Just counting the number of motorbikes using the bridge currently would confirm how unappealing this option would be.
I am all for providing bike lanes into new infrastructure, but where the topography is suitable.
Ken Yallop, Titirangi.

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Short & sweet

On electricity
Given the number of letters to the editor recently critical of the 1980s free-market reforms in the electricity sector, it is interesting that no architects seem prepared to defend their creations. Perhaps Richard Prebble would like to comment in his Herald column? William O'Donnell, Sandringham

On National
Rather than continually looking for a person to lead them, why doesn't the National Party look for some more relevant policies for this day and age? That is why they were voted out. Jennifer Jones, Devonport.

Discover more

Opinion

Letters: Maternity fees, climate change, restaurant reviews and livestock exports

18 Apr 05:00 PM
Opinion

A rare breed: Right-wing environmentalists do it without fanfare or payment

16 Apr 05:00 PM
Opinion

Letters: Frontline workers waging an annual war

15 Apr 05:00 PM
Opinion

Letters: Charge of the light brigade

14 Apr 05:00 PM

On Hooton
I don't usually agree with Matthew Hooton's political commentary but, gosh, he's certainly nailed it with his "message to National: shut up and work" (NZ Herald, April 16). Gordon Moller, Freemans Bay.

Matthew Hooton (NZ Herald, April 16) writes: "Jacinda Ardern's Government is comically incompetent…" On what planet, in which country, has Hooton been living for the past year or so? Most people outside NZ would happily give their right arm to be able to live here. Charles Hadfield, Glendowie.

On terrorist
Why on earth is the mosque shooter still in the country costing us money? He should be on the next plane across "the Deetch", job done. S P McMonagle, Greenhithe.

On milk
Why did the price of milk go up the day after the minimum wage increase? It has defeated the purpose. Kathy Newman, Whitianga.

On land
Decades ago, the regional parks were established to protect open space from a growing city. The same needs to urgently happen with horticulture to feed a growing population. Kit Howden, Mt Eden.

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