Home buyers' help on the way

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The Government will reportedly launch its shared equity scheme to assist home buyers into their first home - announced in last year's Budget - in July.

Budget 2007 set aside $1.4 million for the design of a shared equity housing scheme as part of the Government's drive to help more young New Zealanders own their own home.

Shared equity schemes are common overseas, and typically involve the government or a private entity taking a share in a house (sometimes up to 30 per cent) at no cost to the homebuyer.

The homebuyer then seeks a conventional mortgage on the remainder of the property, and when the property is sold, a percentage of the sale price, equivalent to the equity share, is returned to the supplier - the Government.

At the time of last year's announcement, then Housing Minister Chris Carter said: "Home ownership has been a big part of New Zealand's national identity. The government believes we have a responsibility to do what we can to maintain this tradition and ensure an evenness of opportunity between generations."

Details are likely to be released when Prime Minister Helen Clark makes her statement opening the parliamentary year today.

Earlier reports suggested Miss Clark will announce a big funding boost for non-government agencies such as women's refuge and iwi social service providers.

Social policy is tipped to dominate the speech, which will include the initiatives for affordable housing areas but will also hark back to last year's speech emphasising climate change and sustainability.

Miss Clark promised yesterday that there would be "only pleasant" surprises, but said the speech would include substantial policy plans. The Government was not about to "hang up its boots" and start campaigning just because it was the third year of its term.

Today will see the first election-year head-to-head clash between Miss Clark and National leader John Key as each tries to grab the initiative.

The speech is traditionally a dry catalogue of the Government's plans, but Miss Clark is tipped to be more "political" than usual.

A copy of the speech must be provided to the Opposition and all party leaders at least four hours before it is delivered at 2pm today, giving them plenty of time to prepare their responses. Miss Clark must read it word for word.

According to former clerk of the House David McGee, the statement should review public affairs and outline the Government's legislative and other policy initiatives for the coming year. There is no time limit on the statement, though Mr Key's reply is capped at 20 minutes.

The Opposition is expected to show more than usual restraint with its interjections during the statement, though that tradition may come under pressure if Miss Clark strays too far into political rhetoric. The speech will be followed by a 14-hour debate.

In her speech last year, Miss Clark announced moves for a carbon-neutral public service and new rules on government procurement to help achieve sustainability and improve waste management.

- with The Dominion Post

- © Fairfax NZ News