Written By:
Mountain Tui - Date published:
9:39 am, February 11th, 2025 - 13 comments
Categories: chris bishop, housing, labour, national, same old national -
Tags: chris bishop, Kainga Ora, Kieran McAnulty, state housing, Winston Property Development
Last week, Kieran McAnulty called out Chris Bishop and Nicola Willis for their claims that Kāinga Ora’s costs were too high.
They had claimed Kāinga Ora’s cost were 12% higher than market i.e. private devlopers
But Kāinga Ora’s Chair had already explained why last year:
“We’re not building to sell, so we’ll be maintaining these houses over an extended multi-decade period. So we want to make sure that we’re putting in the right fittings etcetera that will, at the right cost, be better.
“The other thing that is quite a big factor for us is the land that we hold isn’t always optimally configured and property developers can pick and choose what land is going to be the lowest cost to build on – which is partly topology, but partly sort of form factor, etcetera, which leads to greater efficiencies – and we don’t always have those degrees of freedom.”
KO Chairman Simon Moutther
McAnulty also pointed this out last week:
“70% of the people in Kāinga Ora homes have a disability, so building these homes for these people is not the average residential dwelling that the private sector would build … they have wider doorways, they have special aspects to them that cost money.”
You didn’t hear it in NZ Herald’s Jamie Ensor report, or God fordid, Newstalk ZB which led with that Labour was just“perplexed” with Bishop’s plans.
Ditto interest.co.nz’s Dan Brunskill coverage – missing of course.
Nor an anoymous 1News reporter’s report.
Why?
“I think Chris Bishop’s full of it … it’s all PR and it’s all about saving money, rather than housing people.”
– McAnulty
McAnulty was also spot on with his criticism of the Bill English report – which I also covered as one of my first pieces on this Substack:
It was “not based on fact”, McAnulty pointed out.
“The review was a crock. It just so happened to land in the exact same conclusion that [the] previous National government were heading – it was preconceived, in my view.
“The board of Kāinga Ora pointed out factual inaccuracies throughout the report, and this government has ignored it. Their response was to replace the board.”
This is all very important context which the majority of our major media outlets have ignored.
Again – why?
After all the respected Newsroom had covered many of those points in detail last year, so they are all factually verified.
Heck, you could even read a Substack from some weird bird creature called Mountain Tui and discover some of the same.
To be fair, The Post published a contextual article by Max Rashbrooke yesterday which pointed some of this out – but as usual, it’s the first articles that make the deepest impressions – and this Government knows it.
Rashbrooke:
National’s attempt to undermine [Kāinga Ora’s] success takes two forms.
The first is to complain about Kāinga Ora’s debts. But as Howden-Chapman noted last year, “Has anyone ever bought a house or built a house without doing any borrowing?”….
But even National’s anointed Kāinga Ora chair, Simon Moutter, noted that private developers can “pick and choose” their sites, while his agency must work with awkwardly situated land.
It also builds many disability-friendly homes and has sought the highest environmental ratings….
We must also remember that Kāinga Ora had to start almost afresh.
Under the previous National government, more state houses were sold than built; a deficit of about 14,000 homes – relative to population growth – accrued, deepening the catastrophic sales under Jim Bolger in the 1990s. John Key’s government also did “almost no” renewals of ageing stock, according to Kāinga Ora.
In May of last year, McAnulty, on Kāinga Ora, also said this about Kāinga Ora in Parliament. I’m copying large parts of it because I think that it is completely spot on –
On numerous occasions, the Prime Minister mentioned that debt had gone up from $3 billion to $12 billion.
At no point did the Prime Minister mention the asset value that had been accumulated in that time, that had gone from roughly $20 billion to roughly $45 billion in six years.
Why? Because they are trying to paint a picture. They are trying desperately to undermine an organisation that had to start from scratch.
Actually, that’s inaccurate: they had to start beyond and behind the starting line, because when we came in in 2017, and when Kāinga Ora was established in 2018, Housing New Zealand was a shell of an organisation.
It existed for one reason and one reason only, and that was to sell State houses.
It was a shame, it was a disgrace, and we had to build that up from nothing, change the outlook. That is what, supposedly, was in review yesterday. It was what, supposedly, is under financial strain.
What amazed me was it seemed like the Prime Minister and the housing Minister only realised that it costs money to build houses, and a lot of houses—14,000 is the number that public houses increased by in the last six years.
That is an astronomical number in the context of what Housing New Zealand was and what Kāinga Ora has become.
By all means, we should always look for efficiencies, but the attitude—it was astounding. They’ve given up—they have given up. They have not even committed to continuing at the same level.
I find the actions of those two Ministers yesterday to be disingenuous—disingenuous because throughout the campaign, both of them made a promise to New Zealanders.
They promised that their Government would build more houses than the Labour Government.
So to achieve that, that’s 14,001-plus, and what have we seen in the last seven months? Absolutely nothing.
We’ve seen blaming and we’ve seen dodging around the issues, and we’ve seen claims that I believe to be disingenuous.
I’m starting to think McAnulty is severely under-reported – especially for the quality of analysis he provides.
And once again, despite my fervent desire for a successful and effective media, the industry has a lot to answer for when it comes to the key points.
For months, and possibly years before hand, NZ Herald & Stuff etc. has been leading with headlines like this – stoking rage about Kāinga Ora and quoting from competition developers:
Coughlin also headlined an article last year called “Put on your dancing shoes Christopher Luxon, the rock star economy is back for an encore”
There’s also a reason why Kāinga Ora is one of the few Government organisations that have valiantly retained its Māori name under the National, ACT, New Zealand First friendly coalition government.
They didn’t even try to change it.
As I wrote early last year – the knives were already out for Kāinga Ora from the start.
And in my opinion, nothing was going to stop them from making it real.
They just did – thanks to a complicit and/or weak media landscape.
PS I am adding a summary I created post-publication
Reposted from Mountain Tui Substack
I liked McAnulty's comment that Bishop was "full of it" the other day. More please
Plus Kieran also said " to do better than Labour, they need to build 14001 houses.
I have now added a summary that I created post-article to the end of this article. It mentions your highlighted point.
I agree with your comments about McAnulty. His communication is very clean and very persuasive.
Is this part of (a very slow moving campaign) to install Kieran McAnulty as Labour party leader? I've got nothing against Chris Hipkin's but he was always a caretaker leader and it's time to move along and let someone else in.
Sooner the better with concise cutting remarks such as he's done to keep it simple for the sheeple.
No – because I am not a member of the Party.
However, as you can see I covered Kainga Ora early on last year – and forecasted these exact moves by Bishop, ie it's come to be now – as predicted.
And then in reviewing the updated coverage, and finding excellent points from Kieran, my article found its pinpoint.
We need media to cover context, history as well as important opposition points – no matter which party.
That Kieran has the intellectual heft, care factor, and clarity is a bonus.
I personally don't believe he needs to be a leader – everyone has their own preferences and skillsets and it is the people close to the party and the leadership that should determine it as in person experience surpasses people who are afar.
And especially not folks like me from the peanut gallery.
Personally, I don't like all the armchair criticism and strategic planning – sure, we (as I do) can opine and speculate, but I think it's always appropriate for us to leave some space given we haven't talked to the people living that world.
Imagine if we used the vaulted like a house hold analogy (we have to tighten our belt) the Tory scum love to use all the time on their on housing and/or assets sales?
Please someone phrase this better
It would go something like this – at 40 you sell, the family home, the car, and all your furniture – just so you can live within your means. So your left renting, relying on questionable public transport and a winz loan – that they will decide where you will get said bed to sleep on – no matter how shit it is. Oh and you have to pay back the loan you have choice over.
Question Mountain Tui, do you really think the media is independent?
Because in my mind they have acted like stenographers for corporate interest for the last 40 odd years, not like a fourth estate at all – with very few and far exceptions.
I don't trust the media in this country to be nothing more than fan boys and girls of this bat shit crazy economic model called liberalism.
Great question, adam.
The issue is – I'm new to the scene. I only started paying attention after the last election.
That means I am only starting to learn and see what folks like you may have known for 40 years.
It explains the naivety about many of my posts and perspectives.
To answer your question – no I don't think they are independent, and this KO piece cemented it – and I'm sorely disappointed by that thought.
Kieran is not a replacement for Chippy as Chippy is a proven workhorse in Government and a great communicator. Kieran has cut through and will be a great fund raiser and presenter of Policy in "Bites". He will rally the ground troops. Unity and Team as against 3 Egos.
Patricia – I agree. Chris Hipkins is very clear and matter of fact in his communication. Kieran McAnulty also presents really well, as do other Labour MPs.
Aside from McAnulty repeatedly stating he does not want to be leader, the party appears united, is polling well and Hipkins is gaining in the polls. Therefore why are some commenters suggesting a change of leader?
Two possibilities come to mind. Firstly, most commentators probably genuinely think Labour can't win with Hipkins because nobody loses and gets re-elected later, and therefore Labour should replace him for more of a fighting chance. Secondly, there may be a few commentators who don't want Labour to win so are maliciously suggesting they nobble their best chance.
For what it's worth, I think the first is a lot more common than the second.