President's Report

07 Mar 2007

The property market at last seems to be cooling. This is good news for property investors as Treasury and the Government try to hurry the downturn in the property cycle by suggestions of restricting our business. The NZPIF executive is busy responding to these news items as to why they would not work or why they are not necessary. We are concerned though, that if enough mud is thrown at us, some of it may stick.

The Federation has forwarded submissions on the IRD proposals to change the rules regarding associated persons and to the Parliamentary Select Committee looking at the affordability of housing.

We were fortunate to be in the right place at the right time on 20 June when Dr. Cullen announced that ring fencing of losses on investment property was likely to be introduced.

Andrew King and I were in Wellington with Thomas Chin and Jan Hains. Thomas had arranged a day of meetings with opposition MP’s to enable us to introduce them to the NZPIF and encourage them to contact us for our comments when property matters were raised. It also gave us the opportunity to point out the unsavoury consequences of the ring-fencing proposal.

The news media had also picked up the ring-fencing proposal as a major news item of the day. Andrew and I were able to formulate a response together as we were called and interviewed by TV1, TV3, National Radio, Radio Live, Newstalk ZB, Auckland Herald, Wellington Dominion and Christchurch Press.

The National Party had invited us to a social evening with them, so we stayed in Wellington the night. The following morning we were pleased to hear Dr. Cullen on the news stating he did not now think ring fencing would be introduced due to lack of support from other parties.

Martin Evans
President NZPIF