Trouble in Paradise? The Labour-Greens agreement has had its first public spat, a disagreement over housing policy.
Greens Co-Leader Meteria Turei said she wanted to see a 50 percent drop in house prices over the next 10 to 15 years, and outlines a plan to get there by introducing a Capital Gains Tax, banning foreign investors, and eliminating certain tax exemptions.
Turei claims that "If we don't have a plan for bringing down house prices then we are going to have a crash. And nobody wants a crash."
However, Andrew Little sternly refuted it, saying "We don't agree with it and it won't be happening under the next Labour-led Government.”. Labour wants to see a stabilization of the housing market by increasing supply through their Kiwibuild program, but does not want to see a drastic reduction in prices, as it would be harmful to many New Zealanders who already have mortgages.
John Key was quick to criticise, claiming the Greens would “destroy the savings of New Zealanders”.
Andrew Little says the agreement between the parties remains strong, and the Memorandum of Understanding allows them to be at odds on key policies without dissolving the deal, saying “We do have the right to disagree but there's a lot that we share… The relationship is strong and will continue to be so”