KEY POINTS:
The Herald asks three parties: If private finance for housing dries up because of the world credit crunch, should the Government get back into the business of lending money for housing?
Jim Anderton, Progressive: We would allow families to capitalise family support. For example, a family that capitalised 10 years of family support at $100 a week would get an instant deposit of $52,000 at no extra nominal cost to the Government. We championed Kiwibank partly so that New Zealanders would have control over our own financial destiny.
Maryan Street, Labour: Instead of going back to a 3 per cent State Advances loan structure, we have gone for shared equity, mortgage insurance [Welcome Home loans], KiwiSaver and the new HOPE scheme (Housing Ownership on the Public Estate). What we are developing, I think, are modern answers.
Phil Heatley, National: No, but we would give people a huge step-up through the free use of land for 10 years, we would keep the KiwiSaver deposit subsidy and continue to insure borrowing through Welcome Home loans. But if people were unable to get a bank loan with such incentives, we wouldn't want to entice them into debt, because they wouldn't be able to service it.