National’s HCNZ cash problem

13 comments on “National’s HCNZ cash problem ”

• Comments are now closed

1. Barfly 1

   15 October 2016 at 12:35 pm

   to quote the great Homer “DOH !! “
2. Draco T Bastard 2

   15 October 2016 at 12:42 pm

   For instance National’s status as genius economic managers is clearly a joke.

   National’s portrayal of themselves as genius economic managers has always been a lie. Our economy always suffers under a National government.

   Solid Energy is in flames and selling state houses to bolster the balance sheet of a social housing provider is not the sort of thing a competent economic manager does.

   But it is the type of thing that a set of psychopaths that are looking to transfer the nations wealth into private hands does.

   Where is the money coming from?

   They’re going to borrow it from John Key’s mates in the banking sector so that they can have a government guaranteed income.

   The banks will, of course, just create the money. There won’t be any ‘loaning’ involved.
3. Tamati Tautuhi 3

   15 October 2016 at 2:56 pm

   It is called State Asset Stripping?
   • Keith 3.1

     15 October 2016 at 5:44 pm

     Questions I have is:

     Why is Housing NZ almost insolvent? Is it because they have been bleeding it dry of “dividends” to cover for the tax cuts and loss of revenue from those asset sales, just like they did to Solid Energy for example?

     Because of the above mess has National been keeping Housing NZ afloat by selling its houses off?

     Where are they going to get the money to keep Housing NZ solvent or do they let it go broke?

     How the hell did we get to this point?

     Where is our useless corporate media holding these idiots to account?
4. Keith 4

   15 October 2016 at 5:31 pm

   Why do National just give up the bullshit and sort out housing once and for all instead of all the lies and the deception? They just cannot do can they?

   This is a government not only of lies but one that is utterly poll driven as well. And being poll driven means coming up with solutions to poor polling on the hoof.

   The Key National governments way of dealing with problems by pretending to do something to make it look like they are doing something has not worked because this is a deep seated issue that gets worse every day it is ignored.

   So what they have come up with is the same but different. We’ve all had time to watch Keys National at work. Their latest housing policy that does not address speculators, rampant immigration or tax evasion will not achieve anything because it’s only purpose is to take the problem off the front pages.

   They will claim that they now have a long term policy, that we are already doing Labours policy but of course they won’t be doing anything of the sort. This kind of “policy” is very cheap and nasty because there will be no money to do this properly. How do we know, because Bill English finely balanced his governments 2016 budget with all the future rosy forecasts without this ever being costed or mentioned. Furthermore they way they are going we are broke anyway. And again they will fiddle whilst Rome burns.

   This latest housing policy, (one of so many empty attempts from National) is typically vague and grey. It will be one of those “we will spend a gazillion dollars on this problem, but over many years, but only if a, b and c align, and x = y, oh by the way, we had our fingers crossed when we said this so no guarantees”.

   I believe that by the next election anyway that this latest attempt by National will be abandoned like all the rest as house prices and homelessness continue to rise.

   And as for Housing NZ running out of cash, what kind of clowns are running this country and how will National fix their latest own goal, essentially to close it down like Solid Energy?
5. Tamati Tautuhi 5

   15 October 2016 at 8:43 pm

   The solution is borrow more money from the US Bankers and the Federal Reserve.
6. Ad 6

   15 October 2016 at 9:02 pm

   English keeps getting blindsided by Smith. Smith has got to go. With what he gets away with, what farm animal porn does Smith have on this guy?

   But a Little/Twyford government will face the same challenges. They will be forming multiple companies or ‘Urban Development Authorities’. They will be playing God with the real estate market, using taxpayer money. Far, far better if these entities made their own money, and made a profit, so that the media can’t blowtorch their ass as much.
   • b waghorn 6.1

     15 October 2016 at 9:54 pm

     I’ve read a couple of times recently that it’s labour’s fault that key won’t sack smith , due to them suggesting he be sacked.
     • Sacha 6.1.1

       16 October 2016 at 6:50 pm

       how convenient. lack of replacement talent might be his problem, foot-mouth problems notwithstanding
7. DH 7

   17 October 2016 at 9:40 am

   I can agree National are ruining this country especially in regards to housing but I think the criticism here is misdirected and too easily deflected by the Nasty Nats.

   From what I’ve seen HNZ does not have a cashflow problem. It’s cashflow is perfectly fine, the revenue from rents more than covers expenses and will continue to do so into the foreseeable future.

   HNZ is short on capital funds, it can’t adequately fund future capital expenses like building more houses. It can raise more funding in two basic ways;

   1/ The shareholder(s) can inject more capital
   2/ It can borrow money

   In simple terms cashflow pays the bills, capital buys the assets. HNZ has some $17 billion of equity so it can easily borrow more money at good rates. The dividend argument is a red herring because retained earnings are not enough to cover HNZs future capital expenses.

   If you want to really start making inroads into National’s economic performance it’s not a bad idea to try thinking like a beancounter (not easy). I’d expect English to authorise more HNZ borrowing although that could depend somewhat on how the borrowing will affect his precious books.
   • pat 7.1

     17 October 2016 at 9:47 am

     thinking like a bean counter that action may be restricted by whether or not those assets have already been leveraged or not.
     • DH 7.1.1

       17 October 2016 at 10:33 am

       The $17b of equity says they’re largely freehold Pat. At 2015 HNZs long term debt was $1.76 billion. It’s a very healthy balance sheet

       The current criticisms of HNZ are laying the groundwork for the Nats to announce new funding measures that suit them. A possible source of new HNZ borrowing is a PPP or two. PPPs could permit them to hide the debt from the books and look after a few mates with some cosy contracts.
       • pat 7.1.1.1

         17 October 2016 at 11:49 pm

         Asset revaluations
         Properties are revalued in line with forward forecasts provided by the Treasury which may not reflect future reality.
         The risk is that actual revaluation movements will be significantly different from those included in the forecast.
         Property values can be volatile, depending on the state of the economy.
         Medium

         The impact of volatility on Housing New Zealand’s operating surplus would be relatively low and manageable.
         However, the impact on other comprehensive revenue and expense would be large.
         http://www.hnzc.co.nz/assets/Uploads/HNZ-SPE-2015.pdf

         http://www.stuff.co.nz/business/opinion-analysis/76574076/trading-places-running-nz-like-an-investment-fund

         http://www.stuff.co.nz/sunday-star-times/latest-edition/6671255/Government-in-112b-barney

• Comments are now closed

• Log in
• Donate
• Contribute post

• Articles RSS