Racism and foreign investment

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It has been a very hard week for Asian-New Zealanders who feel they have been scapegoated for the growing property bubble.

The hurt and anger at being highlighted as ‘the problem’ has been deep and intense.

The ever brilliant Keith Ng has argued that Labour’s use of Chinese sounding names can’t be used to suggest  Chinese buyers are the problem, Rob Salmond has argued they can be.

Beyond the stats and arguments there are 3 basic facts.

1 – This debate has hurt and alienated Asian New Zealanders  who already face huge discrimination in NZ.

2 – No one other than the gutless Labour AND National Party are to blame for lax overseas ownership rules and a total reluctance to help create affordable housing and warm healthy state houses.

Remember when Key said this 7 years ago?

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3 – Concerns about China’s influence over our political system and economy are as legitimate as our concerns over America’s influence over our political system and economy.

Those concerns are not racist.

Don Brash’s Orewa Speech was racist. Helen Clarke confiscating the foreshore and Seabed was racist. Muldoon sending in the dawn raids aimed at Polynesians was racist. Key’s attempt to use Muslims as a justification for re-invading Iraq was racist.

Using Chinese sounding names to make a point opened the door for racists, but Phil Twyford is no racist.

What Labour need to do now is move on from that point and provide actual solutions – if they don’t then this was just race baiting and they are supposed to be better than that.

Here are some solutions I believe they need to look at if they are going to be serious.

  • 30 000 new state houses using a vast Government backed training and building plan that connects NZs provincial forests to lumber yards that create the wood and jobs needed to build these new State Houses. Create incentives for Farmers to move away from Dairy to replanting forests.
  • Renter rights that set rent increase limits and longer tenancy.
  • New affordable homes set at affordable prices available only for first time buyers.
  • Capital Gains Tax on all houses except the family home.
  • State Houses for life plus a new way for beneficiaries to access interest free loans to purchase those homes.
  • No foreign ownership of residential property.
  • Death duties on all residential property other than the family home.

Racism is believing someone is inferior because of their race, in the China property speculation debate, the inferiority complex is all NZs!

The Pacific is the cold war theatre between America and China – how we manage these two giants is the real question mark for NZs foreign affairs. There are serious issues to debate here, the clumsy way Labour have gone about making their point aside, the debate of how much influence China AND America are exerting on us needs to be out in the open.

37 COMMENTS

  1. Most of what you suggest would possibly cover the other concern I have and that is this business of seemingly every man and his dog aspiring to be a landlord. I reserve particular concern about foreign landlords as I see accommodation top ups as welfare to landlords. What other country offers welfare to foreigners living in a foreign country?

  2. Have I missed something here? I don’t recall seeing anyone comment negatively about NZ Chinese who buy property in Auckland. Good luck to them. Indeed, I can sympathise with the comment that young Chinese residents have different cultural values that push them towards multiple home ownership, while those of European descent are encouraged to travel overseas instead. The end result of these two cultural patterns is that young NZ talent ends up offshore, and the local property market is dominated by NZ citizens of Chinese descent.

    To me, this data highlights the need for more sophisticated data collection than we have in place at the moment.

    • +100 Good Post…i dont have a problem with NZ Chinese owning property( if it is kept at one or two)…I do have a problem with overseas foreigners owning multiple NZ houses and land …this is just fu..ing stupid !!!!…it is a betrayal of NZers particularly the youth who have nothing

      btw I have a friend who is part Chinese…his family have lived in NZ for generations….he is a Labour supporter and has no problems with Twyford and Labour

      imo this ‘racism’ accusation is spurious and has been whipped up by friends of the Chinese government….stupid Greens trying to undercut Labour …fake Labour supporters ( really closet Chinese govt supporters)…and Nacts

      • i dont have a problem with NZ Chinese owning property( if it is kept at one or two)

        So are you implying that NZ Chinese can only own one or two properties —but other types of NZrs can own as much as they like?

        New Zealanders jumping up and down about this and blaming the Chinese don’t know how pathetic they look.

        Don’t blame the Chinese –what have they done wrong?

        Blame NZ governments past and present for doing nothing about it.

        If your wife sells your car without telling you or against your wishes do you blame the buyer and rant and rave like a lunatic at him?

  3. Its not the WHO ……” Wont Get Fooled Again……..but the “WHY”…..and its got NOTHING to do with RACE…..

    Control SUPPLY – and as DEMAND increases…. you control the PRICE!

    Now you have to ask “HOW” did they do it?

    Answer that question and there will be thousands of very upset Auckland property owners……

    Or perhaps they should all just keep singing and hoping – I wont get fooled again……..

  4. If we take your definition of racism as accurate, then everything you say it true. Unfortunately your definition is so incredibly simplistic and misapplied that it’s just plain wrong.

  5. Wow ! I can’t believe how people can tie themselves into so many different kinds of knots over this.
    All Labour did, was make public, information that every N.Z citizen had a right to know.
    I don’t see it as being clumsy .Either you release the information, or you don’t. You can’t be ‘a little bit’ pregnant.
    The chatter that i have been hearing all over the place is , “why haven’t we been privy to this information before .”
    In other words “why have the people who are actually in power, not provided the Citizens of N.Z., from whatever ethnic descent, with a list of foreign investor ownership.”
    The finger should be pointed squarely at National who have created an incubator for these accusations of racism to develop.
    The more you keep people in the dark , the more the ‘pillow talk ‘ flourishes.
    The question that should be being asked is; “Why has National, over every other country on the planet, openly, but secretly, encouraged non N.Z resident Chinese to buy up vast amounts of N.Z residential real estate , considering we have over 80 different ethic groups residing in N.Z now.
    WHY? “

  6. Foreign Owners Register.

    Three words….that would end this ongoing rort.

    Unfortunately…its far easier to level accusations of racism at all and sundry that DARE to challenge the moneypot of the National govt and their colleagues.

    From Orivida to being chairman of the Industrial and Commercial Bank of China , these types of individuals who form the solid base of the blue vote …

    To rich foreign investors and speculators …

    These …..are but a few of the fraternity that never wanted there to be any such legal mechanism such as a Foreign Owners Register.

    As said before…the label and accusation of ‘ racism ‘ is simply nothing more than a smokescreen and red herring to the issue at hand – that of greed and wealth accumulation by stealth.

    The implementation of a Foreign Owners Register coupled with laws that prevent foreign land acquisition for speculative purposes would nip this squarely in the bud…

    However even though the damage has been done…doing such would also prevent an ongoing and unsustainable crescendo of negative economic fallout for future generations of New Zealanders.

    But then ,…there are certain lobby groups who will fight fang and claw to ensure that a Foreign Owners Register is not set up… to have one implemented would be to expose a lucrative pecuniary reward which is best done in the public’s ignorance…

    Far easier and more base to simply yell down any dissenting views and implicating evidence with that crude label of ‘ racism ‘ than to risk such massive pecuniary interests.

  7. A mass housing program could be used to buffer the economy against any potential downturn from the the global dairy price falls. But it does beg the question, where would they build the houses? Not in Auckland, because the council is fighting against any urban sprawl. If not in Auckland, then how will that assist Auckland house prices?

    • By development of other regional center’s of commerce . This would create employment opportunity’s in those regions and inject economic growth into them. This would have the knock on effect of taking the steam out of the Auckland housing crisis.

      One of the reasons why Winston Peters so easily rolled the National party in Northland was because of THIS VERY ISSUE.

      And to argue it cannot be done is to argue against the historical facts. The recession in the regional sector was caused by the negative effects of neo liberalism in the first place and the gutting of those regions.

      A revitalizing and rejuvenation of these areas would create it’s own economic and business momentum – particularly in the service sectors.

      A program such as this would alleviate much of the centralization of the country’s woes in Auckland – yet create wealth nationally.

      Perhaps instead of squandering the finance that’s borrowed every week that puts this country into severe long term debt to enable the super rich to enjoy tax cuts… it would be far more prudent to reinvest that capital into regional developments.

      • In fact it is possible to concentrate building in Auckland. If you check out the population density of Auckland, you will find that Auckland is closer to a car-dominated city like Los Angeles, when we should want Auckland to be more like Paris,a civilised city.
        THe real problem that prevents the building of affordable houses is the price of land. It makes no sense to build cheap housing on overpriced land. When the boom crashes, and it will, the cost of land will plummet… until the next bubble.
        THe best solution is to not sell land to ANYONE. and sell only the buildings and improvements. That will virtually stop speculation.

    • Gypsy.
      You make a very good point.
      What I have seen in cities around the world is a fast, and I mean FAST, rail system coming in from satellite towns and cities, thus doing away with the endless need for endless big city sprawl or overcrowding.
      In Auckland from the South, it would start at Hamilton, picking up Huntly , Pokeno etc. and from the North start at Whangarei and pick up all the many towns , the main ones being Waipu, Wellsford and Warkworth.
      This would boost all these small towns and communities, of which many are dying and at the same time unburden poor old Auckland which is bursting at the seems.
      Auckland has many geographical road blocks with its ‘egg timer’ shape and ‘dead end’ inlets.
      The reality is, some cities just have to put up the ‘No More Room at the Inn’ sign.
      Auckland’s one of them.
      For us to be cramming a city the size of Hamilton in here every 3 years is irresponsible and absolute madness!!
      However with the short termist mentality of ‘The Dinosaurs’ running the country and rail being a complete anathema to them, I fear we will keep descending into 3rd world infrastructure, which in turn, means status!

      • I totally agree. This is the best way to accomodate population growth, without turning Auckland into a copy of Hong Kong. Regrettably, this solution does not meet our current Mayors political legacy ambitions.

        • The fast rail would require Government influence ,money, resources etc and will.
          It is well beyond the Mayors brief.
          It is also Government policy that keeps allowing 50- 60,000 people to immigrate here year on year without having the infrastructure to cope.
          Len Brown doesn’t have any say. He just gets told to deal with it !

  8. Actually, it is worse here than in Sydney. So the ban in place there isn’t going to be enough here.
    First, there is very limited available land in Auckland, so permitting new construction ownership will be just as detrimental as the purchase of new homes.
    Second, there is nothing to prevent purchase of property by surrogates who are already resident.
    I know this is an uncomfortable fact but it shouldn’t be ignored.
    It is also wrong to suggest that simple mass construction of housing will help. The new houses will naturally be snapped up by the same money that is buying the current stock. The solution, apart from a ban on foreign buyers will be for the government to construct housing to supply the rental market, perhaps funded by a controlled construction for the same overpriced market.
    While the situation stabilises, those New Zealanders who want to buy should take another look at the rest of the country. Yeah, why not?

    • except that the rest of the country does not want to be like Auckland or Hong Kong or ….overpopulated China ….so leave the rest of the country out of Auckland’s problems!

      you dont solve problems by spreading them!

      you solve problems by nipping them in the bud at source

      this is New Zealand…remember

  9. A foreign owned property developer (Fletcher Construction) 60% shareholder dominated by JP Morgan, HSBC and CITIbank spent $54 million on land banking Auckland land in the 2014 year. (Company Annual Report). This was 17 applications to the Overseas Investment Office to purchase land as a foreign controlled company.(Official Information Act release) These are 3 of the biggest banks in the world and are by far and away the biggest housing investor in the Auckland Market. Forget Chinese people buying themselves a few houses it is the big corporate money from North American bank investment funds that is really fuelling the price rises and removing huge amounts of capital from our economy

  10. Racism is believing someone is inferior because of their race, in the China property speculation debate, the inferiority complex is all NZs!

    You can’t be that simplistic and you know that’s bullshit.

    The Germans didn’t necessarily believe the Jews were inferior per se —they were pissed off over their overrrepresentaiton in a whole lot of areas.

    Likewise the Hutus did not believe the Tutsis to be inferior, rather they resented their apparent higher social position.

    Same with the Indonesians against the Chinese in the 1960s and non-landowning Chinese against land owning Chinese in the early years of the PRC.

    Racial and ethnic and class hatred flows just as often, it not more so, ‘upwards’ than ‘downwards —-note those terms are just perceptions, not a reflection of actual superiority or inferiority.

  11. Concerns about China’s influence over our political system and economy are as legitimate as our concerns over America’s influence over our political system and economy.

    Those concerns are not racist

    Agreed.

    Many Chinese that I know are proud of China’s rise, and her turning the tables on her former imperialist bullies.

    But being a powerful and influential country means you are going to cop some flak sometimes.

    Just like an American may feel uncomfortable when American imperialism is discussed, a Pakeha may feel uncomfortable when white racism is the topic, an Englishman may feel uncomfortable when the killing of innocent Iraqis and Afghans by British imperialism is on the table, Chinese are just going to have to get use to being talked about more and more, but not always in a complimentary way.

    A lot of this criticism will be unfair.

    Its sort of the flip price for being big and powerful.

    Its not comparable at all with common forms of racism towards other people of colour —including the real racism suffered by Chinese and other Asians in this country in the past and right now, particularly in employment discrimination.

    Anti-Americanism, Russophobia, Sinophobia are all widely and commonly used terms.

    But anti-Icelandism, anti-Tonganism, or anti-Luxembourgism —do such terms even exist?

  12. Martyn:

    The Maori-Pakeha analogy of the cartoon does not work.

    *Pakeha paid Maori blankets and a few rusty old muskets for land.

    *Pakeha confiscated land off Maori

    *Pakeha forced their way in with guns blazing.

    Whereas:

    *The Chinese are paying top dollar for land

    *The Chinese are acquiring the land legally

    *The Chinese will stop buying land as soon as the government passes laws against it.

    *The Chinese have no intention of confiscating land off New Zealanders.

    *Chinese gunboats will not appear in Wellington harbour to force investment and trade conditions favourable to them —unlike what the UK and other Western countries did to China.

    *Even Hong Kong has made it more difficult for mainland Chinese to buy land there —if they can do it and they are part of China, surely NZ can?

    While there could be similarity in effects (and even that is a stretch —a huge bloody stretch), there is a huge moral difference – like the difference between having your car stolen and stupidly selling your car.

    Having said that, I agree with you. Stop all land sales to foreigners now.

    And residents should be limited to owning enough property to house them and their families.

    Only NZ citizens should be able to buy land without any restriction.

  13. Problems with immigration are now showing financial strain on NZ with massive Chinese immigration now happening.

    It is silly to assume that build more properties and it will revive a flagging economy that is now hitting us all.

    Opening up Park crown and council land wont improve infrastructure roads, rail, water electricity etc.

    So hidden costs for this are simply not being considered by those advocating more building will stimulate the economy, no it wont.

    It will load costs of increasing infrastructure so you see the point now those who want massive increased housing ?

    • Problems with immigration are now showing financial strain on NZ with massive Chinese immigration now happening

      So it is just the Chinese mingrants who strain NZ financially?

      And not the South African, UK, etc white ones?

      Don’t have the exact figures, but over the past decade white immigrants have exceeded non-white immigrants I believe.

      So what’s your problem dude?

      Or is it you can’t stand having white people not calling all the shots as they use to?

      Fact is China is rising –in 1840 China’s GDP exceeded all of US and Europe —then she was plundered for 100 years by Western and Japanese imperialism

      However from 1949 onwards she has charted her own path with great success, and is now on the cusp of displacing the USA.

      That will be a good thing, because unlike the US, China will not send the gunboats and tanks in to have their way.

      In terms of CHinese investment, NZ has the right to say yes or no —China will not point a gun at the head of the NZ govt to get its way —-because they are not morally unscrupulous like the British who did exactly that to China in the past.

      China simply offers NZ an option for investment and trade —up to us whether or not to take it.

        • Tibet is recognised by every government in the world, by both National and Labour governments of NZ, as a completely legitimate part of China.

          I don’t think the Chinese have many tanks there or whatever —don’t think the terrain would suit

  14. Well done everyone who engaged in the RACE debate – you all just took the bait and were then left to argue about it while the real issues pass you by……….they must have a lot of fun laughing hard at how gullible you are…..

    Throw out the race card = divisive and consuming to distract.

    …………

    “The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum….”

    ― Noam Chomsky, The Common Good

    • …well of course you know who brought up the race debate?

      …generally new Chinese screaming racism …those who hate Labour….and politically correct middle class point scorers eg the Greens

      …..with an axe to grind against Labour for bringing up the whole issue of causes of housing shortage for New Zealanders….which is gross multiple buy up of existing housing stock from foreign investors ….particularly from China …but other countries may be in the mix

      …we need the statistics and also who/what foreign companies are buying up New Zealand land but jonkey nactional will not release them….until he does we have to keep kicking up the dust ( and not be intimidated by false accusations of racism)…this must be an Election issue

      ..it is an issue of sovereignty and fairness for New Zealanders …especially young New Zealanders

  15. Martyn —your attempt to cast the China in the same light as the US is absurd and wildly off base.

    One is an up and coming nation restoring to her rightful place in the world. Has zero military bases over the world, does not have a record of military invasions and murder, is generally honest in her financial and trade dealings and does not resort to coercion.

    The other power is a ruthless genocidal power, that has murdered up to half a million people in its imperialist wars the past 10 to 20 years alone, and will invade anywhere in the world to protect its ‘interests’. It has hundreds of military bases the world over, and actively undermines legitimate governments leading to the current tragedies playing out in Syria and Iraq.

    The rise of the former should be welcomed as a counter-balance to the latter. The rise of the former will be good for peace and prosperity throughout the world, and offers a new way of peaceful coexistence and resolution of disputes through polite negotiation and not through the strong bullying the weak.

  16. “To force the Chinese government to open China’s doors for so-called “free trade”, other Western countries resorted to non-trade means, generally force, to achieve their goals. Consequently, China quickly fell from being a wealthy power to a semi-colonized country, and soon thereafter the economy almost totally collapsed while its market was flooded with goods and capital from the West. According to some historical data, in 1820, 20 years before the first Opium War, China’s gross domestic product was 32.4 percent of the word figure, the richest country at that time.”

    From:
    http://factsanddetails.com/china/cat2/sub4/item56.html

  17. How many people wanting a capital gains tax or similar, to discourage property speculation, didn’t bother to vote or voted for National in 2014, when Labour was going to introduce such a tax?

    If they voted for National, can they explain why they did this and how the National Government has benefited them?

    With the status quo, overseas and local property speculators can buy as many properties as they want. Obviously they rent out most of these properties, except for the family home – that is, if they live in New Zealand.

    Taxpayers subsidise landlords buy paying for the Accommodation Supplement, and enable landlords to keep their rents high. Landlords are amongst the biggest beneficiaries in New Zealand.

    Accommodation costs are a major cause of poverty in New Zealand. Rampant property speculation is inflating house prices and excluding many people from ever owning their own home.

  18. The word Racism was, according to Wikipedia, first coined by Trotsky born Lev Davidovich Bronstein. Isn’t it a word that belongs to the barbaric past and given the boot?

  19. The world, never mind Auckland or the rest of New Zealand, is in a bloody mess and we are all struggling to afford our houses, if we have one, and the basics, while our children are intentionally brainwashed with mind-numbing education (teachers being victims along with the rest), and mind-numbing computer games, with more mind-numbing technology in the pipeline.

    We are, by design, leaving our kids with one hell of a mess to sort out.

    And their answer my kids tell me:
    A company called “The United People of Earth”. Travel anywhere, anytime; live anywhere for however long; trade with whomever they wish; and the past, they say, binned.

    Phew…..feeling better now! Thanks

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