Thursday, June 8, 2017

Prosecution of property co will make it worse for renters

New Zealand is frequently held up as a paragon of freedom and I guess it is in comparison with many other countries, but I think being top of a sinking pack is not something of which to be especially proud. Every Western nation is seeing an erosion of rights we take for granted - to free speech, privacy, due process - and New Zealand is no exception. The trend is particularly obvious in the commercial sphere where it seems we have moved to a situation where everything is illegal unless the government gives you permission to do it, a reversal of the principles on which our English system of law has been based since pre-Conquest times.

The latest signal case is the prosecution of Wellington commercial landlord, PrimeProperty, for letting a family live in one of its office buildings. It is not obvious from the news reports why this was a problem, particularly in view of the fact that many if not most Wellington office buildings now have some residential use. The reports say that the prosecution was for 'putting lives at risk' - a reference to the fact that the building was damaged in last November's Magnitude 7.8 earthquake and a decision has since been made to demolish it. However, no one was injured in the earthquake and the building in question stood up sufficiently well to enable the family in question to safely evacuate.

The structural requirements for residential properties are actually less onerous than for a commercial property, and there are buildings in Wellington that have been cleared of commercial tenants since the earthquake that are still being used for residential accomodation (presumably with the blessing of the bureaucrats), so no one can seriously claim that housing people in commercial buildings is placing them in any greater risk. The most heinous factor in this case seems to be that the landlord did not have the bureaucrats' permission.

My business is a tenant of PrimeProperty. I find them to be an excellent landlord. Their rents are reasonable, they provide excellent service, and the building I am in is very safe. The owner of PrimeProperty says he allowed the family to occupy the space in his building at a low rental as a favour, and I believe him. Presenting the family as victims of reckless endangerment is an inversion of the truth - they were 'victims' only of Aharoni's generosity and the crime was only of bureaucratic non-compliance. The prosecution, like so many these days, was to justify the unnecessary bureaucratic interference rather than to keep tenants safe.

A woman from an organisation named Wellington Renters United, of which I have never heard, claims that "if it weren't for the utter lack of affordable housing in the city, this situation is unlikely to have occurred in the first place." This comment demonstrates a typical ignorance of economics from many who advocate on behalf of those on low incomes. The truth is that if it weren't for the plethora of unnecessary regulations in the property market, and the high costs of of developers and landlords complying with them, there would be a lot more rental accomodation available in the city and the competition would drive rents down to more affordable levels. This prosecution will only make the situation worse.

1 comment:

paul scott said...

Good post Wit, and good fortune to your people Prime property and the people who have to leave now.
David Farrar should retire his click bait progressive articles over there and syndicate good writers like you in.
I will acknowledge you when I quote this part > " we have moved to a situation where everything is illegal unless the government gives you permission to do it, a reversal of the principles on which our English system of law has been based since pre-Conquest times."