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Housing Corp’s privatisation by stealth

Written By: - Date published: 7:47 am, September 22nd, 2015 - 15 comments
Categories: assets, housing, national, privatisation, same old national - Tags:

Micky Savage John Key housing cartoon

It appears clear that the Government has been gradually divesting itself of social housing at a time when need has increased dramatically.

From One news:

Social agencies say a shortage of state houses in areas of most need is a crisis for low income families which the Government needs to deal with.

Figures released to ONE News show Housing New Zealand has fewer homes on its books now than it did five years ago.

The figures show the state landlord has just over 67, 245 homes on its books, compared to 69,717 in 2011.

The Salvation Army says low income families are living in substandard conditions because Housing NZ doesn’t have enough houses where there’s most need.

 “The Government needs to have a long-term view that addresses the crisis that is now, but also looks to ensure that the crisis doesn’t continue into the future,” says Sue Hay of the Salvation Army.

“There needs to be more housing. We have 15,000 to 20,000 houses short in Auckland.”

But in a startling admission, Housing NZ says it has no idea how many homes are needed.

“In terms of the end number, we don’t as such. But we are looking to make sure that our portfolio’s fit for purpose,” says Leonie Freeman of Housing NZ.

Shades of the issues concerning child poverty.  If you do not know how bad the problem is you do not have to do anything about it.

Those 2,472 houses have allegedly been sold in areas where need is supposedly low.  But having relatively modest needs should not be something to celebrate or to stop trying.

Presuming the number of houses rented by the state remains the same at an average $230,000 a house this adds up to a tidy $561 million.  Coincidentally the amount to be paid in dividends both operating and the special capital contribution in the next financial year is $454 million.

If Housing Corp is right and the houses sold were superfluous to requirements then you have to wonder why other houses in areas of greater need were not purchased.

Clearly we are seeing the gradual privatisation of our social housing stock at a time when the need is greatest.  And the Government is not measuring actual need because that way it can say there is no problem.  And pocket the profits.

15 comments on “Housing Corp’s privatisation by stealth ”

  1. Detrie 1

    Actually I recall my own grandparents in the 60s having a large photo of Michael Savage over their kitchen table, such was the high regard he was held in and giving hope and security to countless New Zealanders. Hope over profit. Still, the gradual acceptance of the need for more socialist policies in the US/UK populous does give a glimmer of hope for a fairer, more caring society downunder, one day, maybe…

    • Ilicit 1.1

      Meanwhile, I’ve been on the priority list for 9 months without a proper offer of a home !!

      Doncha love this government……………….Tui !!

  2. Tautoko Mangō Mata 2

    “In terms of the end number, we don’t as such. But we are looking to make sure that our portfolio’s fit for purpose,”

    From Housing NZ website
    About us
    Housing New Zealand Corporation is a Crown agent that provides housing services for people in need.
    Mission
    We provide high quality, subsidised rental homes to people in the greatest need for the duration of their need.
    What we do
    We focus on the efficient and effective management of state houses and the tenancies of those living in them.

    The Govt sell-off of state houses plus paying a dividend to Bill English means that Housing NZ is unable to meet its mission statement commitments. SHAME!

  3. save NZ 3

    This government is truly evil. To take a roof from the most needy and then sell it off needlessly while underfunding repairs and giving itself extra dividends to spend of frivolous vanity projects like casino convention centres, sheepgate and TPPA bribes and junkets, the flag that uneducated idiots spend 4 hours looking at. They are disgusting!

  4. tc 4

    How many were divested in the GI redevlopment and how much money did private interests make.

    If the opposition can’t get those numbers out there as one example of the sneaky transfer of wealth and reduction in housing stock then it’s time to fold up their deckchairs and step aside for someone that will.

    Great work mickey but where is your much loved party on this issue shouting from the rooftops that shonky has been selling out social housing under the radar for years.

    Twyford needs to go up a few weight divisions on this and keep punching.

  5. Richard Christie 5

    Housing Corp’s privatisation by stealth

    More startling news: the sky is blue!

    sarc

  6. Draco T Bastard 6

    “In terms of the end number, we don’t as such. But we are looking to make sure that our portfolio’s fit for purpose,” says Leonie Freeman of Housing NZ.

    Can’t possibly be doing the latter if they don’t know the former. Also, this is her LinkedIn profile. I’d say that there’s a distinct conflict of interest involved.

  7. Penny Bright 7

    Why are you using the language of the privatisers?

    STATE housing is PUBLIC.

    SOCIAL housing is PRIVATE.

    End of story.

    Penny Bright

    • tc 7.1

      What keeping it simple and understandable ?

      Labour have a long history of using paragraphs instead of sentences, big overlong words instead of short snappy catchy slogans which plays into nacts hands.

    • dukeofurl 7.2

      Another one of your issues Penny is council controlled water supplies

      Strangley they are prevented from running surpluses and paying a dividend, so business gets water at ‘cost price’

      Yet Housing NZ is expected to pay a substantial dividend as well as tax, and this year make a ‘return of capital’

  8. maui 8

    And we wonder why there is more homelessness on the streets, more crime and general society dysfunction. Well we don’t wonder actually, we say its all their own fault, get a job, go to jail, meanwhile we’ll take the rest of your support services from you.

  9. Smilin 9

    John Key pulling the housing ladder up after him like Pulya Benifit axing of the TIA
    To be Frank about it theres A FAST bus traveling down Lambton Quay
    Can u be under it Key ?

  10. Smilin 10

    National should use it real name THE PRIVATISATION PARTY – the party thats a corporation waiting to capitalise on the loses it creates for those who believe in democracy- its running a bet both ways

  11. Smilin 11

    National should use it real name THE PRIVATISATION PARTY – the party thats a corporation waiting to capitalise on the loses it creates for those who believe in democracy- its running a bet both ways

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