First homes kick-start

Interest-free loans for first-home buyers are among a second wave of job-creation measures being worked on by the Government as its job summit gets mixed reviews nearly two months on.

Documents made public under the Official Information Act show interest-free first-home-buyer loans of up to $10,000 were among proposals put up and worked on by private-sector chairs and senior Government officials in the lead-up to the jobs summit.

Others included a housing upgrade plan to fix leaky buildings, interest-free loans for home owners to improve heating and water efficiency; incentives for early retirement and paying employers a subsidy to hold on to apprentices.

Many did not make it into the jobs summit "top 20" thrashed out after a brainstorming session on February 27 involving public service and private sector bosses and Government ministers.

But many continue to be worked on by ministers, including loans to people to build their first home or renovate their existing one.

Registered Master Builders chief executive Warwick Quinn said the proposals to steer more first-home buyers into building their own home were among those sent off for more work.

Work was also being done on a proposal to cut delays around leaky building disputes so builders could "just get on and fix the problem".

"We know there is an appetite within the [Government] to look at leaky homes ... and we know they are looking also at trying to encourage people into their first homes ... so yes, I think they're serious about it," Mr Quinn said.

Building and Construction Minister Maurice Williamson has confirmed the Government is looking at "an alternative approach" to leaky buildings, with more emphasis on "getting homes fixed".

Cabinet ministers are due to get an update on job-summit progress today but as job losses accelerate, the Government faces criticism that it is not doing enough.

But Mr Quinn was positive about the outcome of the summit.

The extra work arising out of the summit bringing forward $216 million in school building projects and $124 million refurbishing state houses would make a difference "particularly to the `smaller builder, with the dog, the ute and apprentice'. But whether it makes enough of a difference we have to wait and see."

In recent weeks there had been more inquiries to builders about work, though those inquiries were slow to convert into jobs.

Unemployment hit 4.6 per cent last month and is expected to have passed 5 per cent when the next figures are issued next month.

Council of Trade Unions economist Peter Conway said the summit's success so far in creating jobs had been "pretty modest to say the least, when you consider all the pressures they're putting on the public service and laying people off.

"Not a big tick there."

Several hundred jobs have so far been earmarked to go in the public service and more will follow.

In the private sector, the flagship policy to come out of the summit the nine-day fortnight has had limited take-up. Just two companies have signed up, saving 160 jobs. Mr Conway said he was aware of a third, while about 50 companies have begun the process.

That earned the Government "a small tick". But there had also been talk at the summit about more support for redundant workers "we're still waiting to see some of those initiatives roll out".

Overall, the Government did not appear to be acting with enough urgency.

"We're still positive about the initiatives [the Government] has looked at but we'd have to say it's not tracking nearly as strongly as we think is required given the forecasts for rapidly rising unemployment Treasury is working on."

But NZ Exchange chief executive Mark Weldon, handpicked by Prime Minister John Key to chair the summit, said there was intense work behind the scenes.

"It's pretty extraordinary. Everyone wants everything done and announced yesterday. We've got to trust [the Government] a bit on this one."

- By TRACY WATKINS, Dominion Post