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State Housing—Challenges

Wednesday 27 October 2010 Hansard source (external site)

Parata11. HEKIA PARATA (National) Link to this
to the Minister of Housing

What are the current challenges the Government is facing with social housing?

HeatleyHon PHIL HEATLEY (Minister of Housing) Link to this

One of the challenges is that a State house is currently the only benefit in New Zealand where once someone is in, that person’s need is never reassessed. As a result, we have over 5,000 Housing New Zealand Corporation tenants paying market rents who could afford to rent from the landlord next door, and all the while 4,000 families are classified on the waiting list as high priority for a State house. We also, interestingly, have over 2,700 tenants in homes that are underutilised, with two or three spare bedrooms. A similar number of tenants, 2,700, are in houses that are deemed to be overcrowded, and really need to be transferred to a larger property.

ParataHekia Parata Link to this

Is the Minister able to provide any real life examples of those situations?

HeatleyHon PHIL HEATLEY Link to this

I do have in hand a couple of examples. In Henderson, for example, we have a tenant in a four-bedroom home who originally lived with her husband, two adult children, and one dependent child. She is now the only tenant, and she has three spare bedrooms. If that tenant could have been moved into a smaller property, the house could be a match for a single mother and her seven young children who have been living in a garage since her marriage broke up. Four bedrooms would still be a squeeze, but I think that family of eight would have found it better than the garage they were often put in, under the previous Government.

ParataHekia Parata Link to this

What cost does underutilisation have for the New Zealand taxpayer?

HeatleyHon PHIL HEATLEY Link to this

Firstly, for every home that is underutilised by two or more bedrooms, there is a family that is living in overcrowded accommodation. Secondly, many taxpayers do not realise that they pay Housing New Zealand Corporation the difference between an income-related rent that tenants pay and the market rent for the property. The larger the property, generally the larger the subsidy. For example, in Ōtara we have a single tenant who is living in a four-bedroom house and paying a rent of $47. There are three spare bedrooms, and the tenant is paying $47 in rent. Other tenants, of course, are languishing on the waiting list while that person with three spare bedrooms gets a $21,000 subsidy per year.

MackeyMoana Mackey Link to this

Does he agree with Housing New Zealand Corporation staff who say that the biggest impediment to moving people on from their Housing New Zealand Corporation home, which the staff try to do now, is not that they refuse to move, but that they have nowhere to move to, and does he stand by his statement that no tenants will be made to leave their Housing New Zealand Corporation properties if they do not have anywhere to go?

HeatleyHon PHIL HEATLEY Link to this

The biggest impediment to Housing New Zealand Corporation staff moving tenants on, and asking them to be moved on, is that the staff have not been allowed to ask them to move on in the last decade.

MackeyMoana Mackey Link to this

Which parts of the country will see a reduction in the number Housing New Zealand Corporation properties because they are deemed to have an oversupply of State housing?

HeatleyHon PHIL HEATLEY Link to this

The areas of the country that will see an increase in the amount of social housing will be the areas that have high needs. The areas of New Zealand that will see a decrease in the amount of social housing will be the areas of low needs. It is not exactly rocket science! I suppose we could be like Labour and build State houses just in Labour seats, but we are the National Government and we would rather put houses where the needs are.

KingHon Annette King Link to this

He’s just a show off.

SmithMr SPEAKER Link to this

On this occasion, the Minister himself is lucky that the honourable deputy leader of the Labour Party interjected or he would have been leaving the House, because when I get to my feet, even Ministers will sit down. The Minister had said quite enough, and the question did not justify the last part of that answer. The important thing is that when I get to my feet, Ministers will sit down. He is just darn lucky that there was an interjection from the other side of the House or he would be leaving the House. I insist that that rule will be obeyed.

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