The National Party COULD have run a MEGA HOUSING PROJECT for NZ over the last 6 years... Let's take 1 week's loan (at low interest from China) = $200,000,000.
If we think about this in terms of "numbers of houses"@ an average of $300,000 each - low cost energy-efficient house and land. We could have built (wouldn't you know it) 666 houses per week. Suddenly, there are a LOT more jobs out there for our tradesmen and the economy gets cranking again. For one year at this rate, NZ could have built 34,666 homes for New Zealanders.
For all those loans we took from China @ 0.00 % for the first 5 years (which seems to be the offer to many countries from China), New Zealanders in their new homes (rent to buy) could have been paying (let's say) 5% back to the government on their $300,000 house and land package.
These would not be "State Houses", but "Kick Start Houses" that people would OWN. Let's work out 5% on $300,000 = $15,000/ year in interest, or $288.00pw.
That's 666 house holders per week paying back $288pw in interest = $191,808 pw for the Interest ONLY being paid to the government. Presumably people would also want to pay some of the Principle... so that would be EXTRA AGAIN back into the coffers of the Kick Start scheme.
There are HUNDREDS if not THOUSANDS of houses like this Hutt Valley icebox near Wellington. You could EASILY put 2 dwellings on a property this size. Three properties if they're 2-bedroom. It's government land already. It's sitting there waiting to be utilised properly. Why on earth did the government NOT take advantage of the situation? This article is TWO years old. It's not as if the problem just came from out of the blue. But it IS compounding... Just like the interest on our Public Debt right now
Over the period of ONE YEAR, 34,666 house holders could be in their own dry comfortable insulated homes with healthy happy kids in them, making interest payments to the government that total $519,158,016 in one year. How about that...??
A REALLY savvy accountant would have introduced the scheme for the whole 5 years at 666 houses being built every week up and down NZ. There could have been 173,330 houses built in total... God knows we need them... Including rentals for International seasonal workers, International students and inexpensive accommodation for holiday-makers... (making NZ an even MORE attractive holiday destination) all of which would have given a return in interest of $49,919,040 EVERY WEEK...
In the first year, the return in interest alone would have been $2,595,790,080. Multiply this by the 30 or so years it would take to pay off the loan and the total made on interest and principle would be over $100,000,000,000. That's with a total loan from China of 50b.
There were OTHER WAYS of using this 65 billion dollars... but the National government DIDN'T. I mean... we could have sorted out poor housing in Northland, the East Coast, in our South Island regions, in our overcrowded cities - Auckland needs 40,000 houses in the next 3 years alone, Christchurch needs around 30,000 NOW !! We could have solved the housing crisis in Christchurch by 2013... But NO !! This government just wanted to keep milking The People and putting all of that money into the back pockets of their corporations mates, who are already rolling in money.
Instead of THINKING of the possibilities, THIS GOVERNMENT decided to be an arse !!