According to Housing Minister Nick Smith, a comprehensive investigation into the foreign ownership of New Zealand homes would be a blind alley.
On the political level, that may be an understandable sentiment. Rising house prices are set to be an election issue, and the Government wants to steer clear of potentially embarrassing disclosures.
On any other level, however, Dr Smith's statement verges on the irresponsible. We need to establish the level of foreign ownership. Only by collecting evidence and no longer relying on anecdote will we know if there is a problem, and the need for a solution.
Dr Smith's position is all the odder given that figures he released last week appeared to confirm that ownership by non-resident foreign investors is far less substantial than opposition parties have suggested.
Inland Revenue records show that only 11 per cent of landlords are overseas. That number includes a significant number of expatriate New Zealanders. A Treasury briefing last year to the Finance Minister concluded that the level of foreign ownership of New Zealand housing remains relatively low. If Dr Smith has confidence in such consistent advice from officials, he should have no reason to oppose a more comprehensive investigation. Indeed, the outcome stands to help the Government by confirming that action is unnecessary.