Another government backfire

The Herald reports:

Landlords have a little over a year to insulate their properties as the Healthy Homes Guarantee Act comes into force — and sharks are circling.

Some insulation providers have been said to jack their prices up by the amount of government subsidy and then essentially offer non-existent discounts to cream the grant off for themselves. Or there is no subsidy available so the homeowner is effectively paying their own subsidy.

“It used to be a good deal, but then the prices doubled, so when the government subsidy was applied, it made no difference at all,” says Andrew King, executive officer of the New Zealand Property Investors’ Federation.

When the Herald contacted property investor associations across the country, examples of price gouging and alleged fake subsidies emerged.

The Government is bad at recognising unexpected consequences. This policy is leading to price gouging by insulation forms.

Th Super GoldCard is a cash cow for transport operators.