Written By: - Date published: 9:08 am, November 12th, 2014 - 46 comments
Categories: business, capitalism, class war, housing, Privatisation - Tags: asset sales, not yours to sell, privatisation, social housing
Key is trying to frame flogging off much of the state housing asset as a move to “social housing”. When he does so, he likes to use the Salvation Army as an example of a possible provider:
State house could be sold to community housing groups – Key
Prime Minister John Key says state houses could be offered to community housing groups at a discount price as part of Government’s plan to sell off part of its housing stock.
Mr Key said providers such as the Salvation Army might not have the money to provide more houses for needy tenants.
To help them increase their housing stock, the Government could sell them some of its 69,000 state houses at a cut price, he told TVNZ’s Breakfast this morning.
Asked about the cost to the public of selling houses for less than their value, Mr Key said taxpayers would be “better off over all”.
Questions. (1) How exactly will we the taxpayer be “better off over all” for flogging state assets at cut prices? (2) Will the cut price offer apply to other providers – why or why not?
Liquor firm eyes more state houses
A liquor company that bought about 500 state houses under the last National Government wants to buy a further 1500 now that state houses are up for sale again.
Masterton-based Trust House bought all 541 state houses in the Wairarapa and Tararua districts, keeping on their tenants, for $10.5 million in a 1999 deal that current chief executive Allan Pollard describes as a discount of “probably 50 per cent” off market value.
He says the company now wants to buy 1500 more state houses “anywhere in the lower North Island”. It is looking “from New Plymouth and Hastings down to Wellington”.
So if history is a guide then the answer to the second question is yes, flog off state houses at half price to a liquor company. As a taxpayer I just can’t wait to be “better off over all” in that world.