-Press release
Tuesday 19th June 2007 |
Text too small? |
"House prices have increased rapidly throughout the western world except where the supply of new houses has met or exceeded demand, as in many parts of the US," Thompson said.
"Neither can big wage increases help catch up with demand as the Council of Trade Unions is suggesting. All that would do is boost inflation and interest rates.
"Demand exceeding supply is the main driver of house price rises, exacerbated by local government land bank practices and their excessive charges.
"But CTU economist Peter Conway is right in pointing out the minority of people in the unionised workforce have not enjoyed the same level of wage increases as others in the private sector who have a direct employer - employee relationship.
The main reason for that is probably that the private sector unionised workforce is largely in industries where profit margins and value added productivity are lower.
"The answer to the housing situation is to build more of them to better meet demand, but to do that while maintaining quality, New Zealand is most in need of more skilled trades' people, who are also in demand to meet our growing infrastructure deficit which is negatively impacting on New Zealand's economic performance."
Compare
rental and house price statistics online
today at www.Landlords.co.nz.
|
No comments yet
GTK - Half-Year Results Announcement Date
Government ends war on farming
Sky and BBC Studios renew expanded, multi-year agreement
AOF - Q1 Improved Trading Performance & FY24 Guidance Maintained
Devon Funds Morning Note - 23 April 2024
April 23rd Morning Report
RYM - Group CEO Update
BGI - Director Michael Chai
RAD - Final Dividend and Strong FY24 Operating Performance
RYM - Group CEO Update