If you needed proof of rising inequality in Rotorua, all you'd have to do is check out the cover of the Rotorua Daily Post. Tuesday's cover saw 12 more families facing the prospect of soon becoming homeless, and Wednesday's cover has seen more growth in house prices, with reports of one house selling for $150,000 more than it did 18 months ago.
Despite Rotorua's population increasing by almost 5000 since 2008, Rotorua has seen a decrease of almost 50 state homes in the region. You'd think it would have made sense for the Government to increase its housing stock as the population increases to enable our most vulnerable to have a roof over their heads. But unfortunately we have a Government living in a fantasy world.
These cover stories have given credence to President Bill Clinton's economic adviser, Gene Sperling's view, that in the absence of appropriate policies, "the rising tide will lift some boats, but others will run aground".
In my view, one appropriate policy which is absent from the National Party's policy manifesto, is a tax policy which would encourage investment in productive sectors, instead of the current policy which gives tax breaks to property speculation.
When one person has made $150,000, potentially tax-free, for buying and selling a house in Rotorua, while 12 more families become homeless, it's quite clear to see who the Government is looking out for, and who the Government is failing.
