Government confirms state housing sell off

Labour's Housing spokesperson Moana Mackey is calling on Housing Minister Phil Heatley to give a cast iron guarantee that his “reconfiguration” of state housing will not result in any reduction in net state house numbers across the country.

“During a time when rents are increasing, and low income families are struggling to pay the bills, this National Government is once again planning to sell off thousands of state houses.”

“The National party has always been philosophically opposed to state housing – the Minister needs to assure New Zealanders that this isn't going to result in another fire sale of state houses like we saw in the 1990s.”

Ms Mackey said that today's announcement raised more questions than answers.

“If state house numbers are going to drop in low-demand and “premium” areas as well as in high demand and high concentration areas, this would suggest that the total stock numbers are going to drop dramatically.”

Ms Mackey said that Phil Heatley needs to be upfront about where these low-demand areas and premium areas are.

“From previous statements I can only assume this means no more state houses for anyone on a waiting list outside of Auckland, and no state houses in John Key's electorate.”

Ms Mackey said that given HNZ already has around 10,555 people on their waiting list, disposing of such a large number of houses will make waiting times longer by shrinking the pool of available houses by a third.
“HNZ also seems to be washing their hands of displaced tenants who they say might have options such as ‘continuing to rent from a private landlord or a community housing provider’. This completely ignores the reality as highlighted today by the chief executive of the Community Housing Trust Peter Jeffries, that Auckland has a desperate shortage of affordable and appropriate accommodation”
Ms Mackey said that the Minister didn't seem to realise the economic reality for most state house tenants.

“Most state housing tenants are on income related rents – given that private sector rents have already increased and are expected to increase further, on top of GST and cost of living increases across the board, the Minister and his chief Executive are living in fantasyland if they think they can state house tenants can afford to take on a private rental or buy their own homes.”

Despite assertions from the Government that rent increases were unlikely, latest reports show they got it wrong.

“The Minister of Finance assured us that rent increases would be minimal, but figures released today from Barfoot & Thompson show that rents are already on average $15 a week higher than at this time last year.”
“Nothing in today’s statement addresses the core issues of the lack of housing, lack of jobs and low wages. Instead this National Government is piling more and more costs on state house tenants and is now threatening to sell their homes from under them,” said Moana Mackey.

ENDS

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