Some days it must appear as though Prime Minister John Key cannot buy a vote, not matter what he does or says.
The most recent example appeared at the weekend when Mr Key said a land tax may be applied to foreign-based house buyers if there is evidence they are pushing up New Zealand house prices. It may also apply to New Zealanders living abroad.
The overheated property market was a major issue at the last election and Mr Key, and his ministers, have been at pains since to focus on special land areas where the so-called affordable housing should, would or could be built.
Although building consents have soared in Auckland, not as many properties as expected have been built. In the meantime, Auckland house prices have soared, making the city more expensive than Sydney, a sobering fact given the number of people wanting to buy or build a house in New Zealand's largest city.
Mr Key will be well aware next year's election will hinge on the votes in Auckland. He should also be aware of the effects the Auckland housing crisis is having on the rest of the country. Tauranga and Hamilton are already feeling the effect as Auckland buyers look for somewhere affordable to buy within a reasonable commuting distance from downtown Auckland.
In the South, Queenstown, and the wider lakes district, are the second-least affordable places to buy in New Zealand, after Auckland. Reports of ski companies renting accommodation in Cromwell for their winter staff have surfaced this month. Already, Cromwell has become something of a dormitory suburb of Queenstown and Wanaka as locals have been priced out of the respective markets.
Prices in Cromwell have skyrocketed and sections are in short supply. This is not an Auckland problem alone. This region benefits greatly from tourism but without willing workers finding decent and affordable accommodation, service standards will slip. Affordable housing in the Queenstown Lakes District must be a priority.
Political parties have blamed National's tinkering with the Resource Management Act as the major cause of the lack of affordable housing. Mr Key has been criticised for protecting foreign investors but when he suggests a land tax on foreign property owners, Labour calls for a ban on foreign speculators and Act New Zealand criticises him for breaking an election promise of no new taxes.
Others criticise Mr Key for being the top salesman for New Zealand property. Surely, this is the time for Mr Key, Finance Minister Bill English and Revenue Minister Michael Woodhouse to step up with a comprehensive plan to cool a ridiculous housing situation where Auckland properties change hands within days or weeks for hundreds of thousands of dollars more at each transaction.
Measures so far introduced by the Government to encourage first-home buyers have proved ineffectual. Loan-to-value ratios introduced by the Reserve Bank have been effective, up to a point. The Treasury has also been involved, suggesting some of New Zealand's best minds have failed to solve a problem that keeps getting worse.
Why has it become so hard? The first obvious reason is New Zealanders like their house values appreciating. It means they own more of their home and can use the increased equity to offset increased borrowings. We have a love affair with property and investment properties have, and possibly always will be, a growth area for many Kiwis.
A land tax will have the effect of slowing down the price market for both overseas investors and New Zealanders. The tax will not be a great gatherer of revenue but tax professionals say this is not something the Government will expect. It has become increasingly obvious urgent measures need to be introduced to cool a very active property market.
There will be no opportunity to introduce changes before the May 26 Budget. However, changes can be introduced quickly - where there is a will.
