Posts Tagged ‘property speculation’

Capital punishment

datePosted on 09:23, July 6th, 2011 by Lew

Do yourselves a favour and listen to this morning’s debate between Chris Trotter and Deborah Coddington on Morning Report. This is (or ought to be) the agenda for this year’s election, and this is (or ought to be) how the national debate runs.

The leak of Labour’s purported capital gains tax (by former One News deputy political editor Fran Mold, now Labour press secretary, to her former colleague Guyon Espiner) is undoubtedly Labour’s play of the year to date. It takes an issue of great public interest and thrusts it into the national debate at a time when the electorate is preoccupied with less directly political considerations. As Maxwell McCombs famously said, what the voters think isn’t as relevant as what they think about, and this is a great example of taking the initiative and giving the electorate something to think about.

But not just the electorate. Everyone is thinking about this, because it is — finally — a genuine flagship policy from Labour. John Key’s comments on the topic take up two-thirds of the Vernon Small’s Stuff article yesterday. The property investment lobby are predictably livid about it. David Farrar has come out swinging, despite having been cautiously supportive of considering a CGT earlier in the term. Deborah Coddington, in the linked discussion above, saw fit to analogise CGT to child prostitution laws. Seriously.

The announcement has riled ’em, and it’s not even official yet. They’re scaremongering furiously, and if Labour have an ounce of sense the pitch of the official policy announcement (tomorrow next Thursday) will be to allay the worst of these fears. It should be framed as “redirecting investment to more productive sectors in theeconomy” and “paying our fair share”, with Phil Goff and Labour MPs (many of whom own investment properties) laying down a challenge to others: “we’re prepared to suffer a bit for the good of the rest of the country: are you?”

And then there’s the class-consciousness, demographic wedge, which Chris Trotter got pitch-perfect: property speculators are “landlords”, and the object isn’t to win back disgruntled National voters, but to engage the 20%+ of the electorate who didn’t vote last time because they felt none of the parties spoke for them, and the thousands of people who were too young to cast a vote in 2008 and are now even further from the possibility of home ownership because even the worst recession in half a century has failed to bring sanity to real estate markets.

This is positive-sum, strategically sound and tactically smart politics. Now what remains to be seen is whether Labour can win the battle of ideas over it.

L