The Government has announced $150 million in cheap taxpayer-backed loans for Community Housing Providers (CHPs)—propping them up with training wheels instead of letting them ride with private capital.

Commenting on this, Taxpayers’ Union spokesman James Ross said:

“This is Kāinga Ora-lite—same subsidies, different logo. Taxpayers shouldn’t be on the hook when private capital is ready to go.”

“Kāinga Ora’s debt is projected to explode from $2 billion in 2017 to nearly $25 billion by 2026. Now we’re repeating the same mistakes with CHPs without fixing the Ministry of Housing and Urban Development contracts that scare off banks.”

“If the Government truly wanted to empower CHPs, it would fix the contracts to make them bankable—which means predictable and safe enough for banks to confidently lend against. That costs nothing and unlocks billions in private finance—no taxpayer IOUs required. The houses get built, quality stays high, and taxpayers are off the hook."

“We already use private capital for kindies and retirement homes with no fuss or fanfare. If toddlers and retirees can handle it, so can the Minister.”

NOTE:

The New Zealand Taxpayers’ Union is an independent and membership-driven activist group, dedicated to being the voice for Kiwi taxpayers in the corridors of power. Its mission, lower taxes, less waste, more accountability, is supported by 200,000 subscribed members and supporters.

© Scoop Media