5. PITA PARAONE (NZ First) Link to this
to the Minister of Finance
What were the findings of the “further work” he requested be done into the issue of foreigners purchasing New Zealand’s residential property?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Treasury contacted Quotable Value New Zealand and the Inland Revenue Department to explore with them the possibility of further interrogating their databases. These organisations confirmed that their respective databases cannot provide further information about purchases of New Zealand property by overseas buyers.
Does the Minister agree that this issue will continue to cause some concern to New Zealanders who are struggling to enter the housing market, especially without the availability of full and proper information and given that there is much anecdotal evidence that suggests that foreign purchasers are having some effect on property prices?
Hon Dr MICHAEL CULLEN Link to this
There is concern, though the fact that we have seen across-the-board increases in house prices in areas that are not even remotely of great interest to overseas buyers suggests that that has not been the primary driver. I have asked officials to look again, to see whether there are other ways in which we can try to develop better information on this matter. It is clear that the Quotable Value New Zealand and the Inland Revenue Department data does not give an accurate picture.
Has the Minister seen the point made by the Reserve Bank, in its submission to the Finance and Expenditure Committee’s inquiry into the future monetary policy framework, that variations in new migrant arrivals should be used as a supplementary tool during periods in which demand pressures in the economy are becoming intense; and does he think that property information both on foreign nationals who are resident and on those who are not resident needs to be collated separately?
Hon Dr MICHAEL CULLEN Link to this
I hesitate to disagree with the Reserve Bank, but on this occasion I do. Firstly, it is extremely difficult, actually, to moderate the flow of migration with any great degree of success. We have seen that quite clearly over a long period of time. The matter is much more related to the economic cycle in New Zealand than to the ability to turn on and off a tap. The second, of course, is that when the economy is going through a strong growth phase, there is very often also a shortage of labour and a shortage of skills. If migration was cut off at that point—which is effectively what the Reserve Bank is arguing—that would lead to stronger wage pressures and the Reserve Bank would then be concerned about inflation.
Rt Hon Winston Peters Link to this
I seek to table the Sunday paper of 12 August, which discloses that an English domiciled resident and owner has bought 12 farms in New Zealand.
Madam SPEAKER