Waikato Times

Big issues in housing inequality

Racist backlash over halal KFC campaign

- HENRY COOKE MAHVASH ALI

''To the haters I just want to say: bless you and bless your family.'' Syeda Fouzia

The failing housing market is leading to stark inequality between the old and young and the rich and the poor, officials told the new Government as it took office.

This inequality is harming the health of Kiwis, the country’s productivi­ty, and the Government books.

The briefings for incoming Housing Minister Phil Twyford show a 45,000-home gap in Auckland. Twyford maintains the previous Government intentiona­lly kept the number secret.

Officials over two of the briefings on housing do not mince words, blaming high house prices for widening inequality.

‘‘High levels of immigratio­n and fewer departing New Zealanders, along with natural population growth has seen demand for housing outstrip supply,’’ they write, pinpointin­g the start of this trend to 2003.

Both rents and house prices have risen far faster than incomes.

‘‘High house prices have stark distributi­onal impacts: they transfer wealth from younger and less wealthy people to existing landowners, who are generally richer and older.

‘‘The substantia­l increase in house prices over past decades appears to be the major cause of the observed increase in wealth inequality in developed economies, and the ongoing effect is one of restrictin­g access to opportunit­y for the young and less well off.

‘‘This flows into wider social costs, including overcrowdi­ng and homelessne­ss, health problems, and poor educationa­l and labour market outcomes.’’

Officials note that high house prices also cause a significan­t drag on productivi­ty and increase government costs.

Even though the market in Auckland was flat to falling, this didn’t necessaril­y mean things were getting better.

‘‘Although affordabil­ity improves, falling house prices reduce the supply of new homes.

‘‘They undermine the commercial viability of residentia­l developmen­t, because developers and their financiers can have less confidence of recouping their investment,’’ officials note.

Just over half of potential first home buyers across the country would have to spend more than 30 per cent of their income on servicing the mortgage of a modestly priced home, a rough barometer for housing unaffordab­ility.

More than two-thirds (68 per cent) of potential buyers in Auckland face the same predicamen­t, and close to a third of renters are already spending that much just on rent.

Home ownership rates had fallen from a high of 74 per cent in

1991 to 63 per cent in 2013, but the total amount borrowed for houses was at levels higher than prior to the global financial crisis.

The officials also noted that in general, owner-occupied homes were in a better state of repair than rentals.

They noted that New Zealand is hardly unique in having this problem, with home ownership rates Australia and Europe also below

70 per cent. A Muslim woman campaignin­g for KFC to offer halal options in New Zealand says she has received hundreds of hate messages.

Syeda Fouzia said that all Kiwi Muslims were asking for was ‘‘good fried chicken’’.

The Auckland woman said she was unfazed by the racial abuse and comments such as ‘‘go back to your own country’’.

‘‘We knew some people won’t like the idea of halal KFC. To the haters I just want to say: bless you and bless your family.

‘‘We are not asking for the whole supply chain to change, just certain [halal] days in certain branches would be fine.’’

However, David Wardly – an online critic of her campaign – said halal certificat­ion was a way for Muslims to ‘‘ram their religion’’ into New Zealand culture.

The 82-year-old said he did not know any Kiwi Muslims, but he feared the halal certificat­e was a way to introduce Islamic law in to New Zealand.

The Englishman said Islamic practices only had a place in Muslim countries.

‘‘We’ll enjoy your culture, your music, your customs and your food in your country. Not here.’’

Many online opponents also criticised the halal method for being cruel.

But according to the Federation of Islamic Associatio­ns of New Zealand (FIANZ), the country’s commercial halal practices were in line with the Animal Welfare Code.

That meant it was compulsory for all animals to be stunned unconsciou­s before they could be slaughtere­d.

President of FIANZ Hazim Arafeh said the Animal Welfare Code and the halal method worked together ‘‘perfectly’’.

‘‘In Islam an animal must not suffer or be sacrificed in front of other animals.’’

He said there was no hidden radical agenda.

‘‘Halal certificat­ion is not about bringing sharia in to New Zealand, it [halal certificat­ion] exists because New Zealand wants to export to Muslim countries.’’

Restaurant Brands – the company that owns KFC in New Zealand – had earlier said a halal trial was carried out in 2001, but complexiti­es in the supply chain led to the idea being dropped.

Marketing general manager Geraldine Oldham said the fast food chain’s position had not changed and at this stage it had no plans to re-introduce halal options in New Zealand.

There were 46,000 Muslims living in New Zealand in the 2013 census, a 28 per cent increase since 2006.

Halal is an Islamic term meaning permissibl­e. In the dietary context it refers to meat from animals and poultry that has been slaughtere­d using a sharp knife and specially-trained slaughterm­en who recite a special prayer.

 ?? PHOTO: CHRIS MCKEEN/STUFF ?? Halal KFC campaigner Syeda Fouzia said she was not bothered by the hatred she received but there was no need for the abuse.
PHOTO: CHRIS MCKEEN/STUFF Halal KFC campaigner Syeda Fouzia said she was not bothered by the hatred she received but there was no need for the abuse.

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