The strip mining of Housing Corp is accelerated

33 comments on “The strip mining of Housing Corp is accelerated ”

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1. Citizen's Resistance 1

   17 September 2015 at 10:38 am

   Commonly known as ‘colourful accountancy practicing’ and rightfully so concerned citizens are waking up to the charades this Government plays.
   • tc 1.1

     17 September 2015 at 10:51 am

     Dunno about that as the opposition seems unable to call a spade a spade and ends up all middle of the road beige where the MSM spin it under the rug.

     About time they published simple graphs on tax revenue, spending, debt and investment to show folk how the swindle is being perpetrated.
   • Tracey 1.2

     17 September 2015 at 11:47 am

     This seems like the changing around of stuff to do with Christchurch rebuild, caught by an Accountant tin CHCH – twice.

     http://www.stuff.co.nz/the-press/business/the-rebuild/70084887/How-much-is-the-Government-really-spending-to-fix-Christchurch

     http://www.stuff.co.nz/national/politics/10311390/Accountant-claims-surplus-result-of-clever-accounting
     • dukeofurl 1.2.1

       17 September 2015 at 1:34 pm

       The government has nothing like a ‘cash surplus’ for the overall budget. Thats why they are borrowing around $6B to cover total spending when you look at Treasury debt management office figures.

       THATS how you know a swindle is being perpetrated.

       “Media Statement: 2015/16 Domestic Bond Programme Set at $8.0 Billion”

       http://www.nzdmo.govt.nz/publications/mediastatements/debtprogramme/2015-05-21
       The reason for borrowing $8B ( some is to repay old borrowing) is that there is a $6B hole in the spending .

       On top of the longer term bonds, there is short term Treasury Bills , which cover cash flow issues through out the year.
       • Tracey 1.2.1.1

         17 September 2015 at 1:37 pm

         i also know cos i read the 2 articles i linked
   • Grace Miller 1.3

     17 September 2015 at 2:45 pm

     He’s a self-serving, lying piece of shit. [deleted].

     [lprent: We don’t allow people to advocate violence to others, including that they should suicide or have accidents. This is also pointless abuse. Read the policy. 1 week ban. ]
2. Lily 2

   17 September 2015 at 11:04 am

   0.1% dividend? Hardly asset stripping! Especially as the government takes this dividend and will spend it elsewhere on the likes of benefits etc.
   • Brendon Harre -Left wing Liberal 2.1

     17 September 2015 at 11:43 am

     State housing is not a business it is a public service -it provides affordable housing for those who the market fails to provide for.

     Should all public services return a dividend? Lily if we followed your argument their would be no public services -everything the State owned would be considered a business needing to return a dividend.

     Think about it -Courts, police stations, hospitals, schools….. all paying a dividend -pretending to be a stand alone businesses, instead of focusing on their core public duty. It would be a nonsense.
     • dukeofurl 2.1.1

       17 September 2015 at 1:43 pm

       Why is the government required to get a dividend from State housing but explicitly prevents municipal water operations from paying extactly the same sort of dividend to their council owners
       Auckland Watercare Services Statement of Intent
       http://www.aucklandcouncil.govt.nz/EN/AboutCouncil/representativesbodies/CCO/Documents/watercaresoi2012-2015.pdf

       “Watercare is prohibited by legislation from paying a dividend.
       Watercare annually reviews any water and wastewater surpluses and
       considers if the return of such surpluses to the customers is commercially
       prudent.

       One organisation is only housing the nations vulnerable but is expected to make a profit from it.
       The other is providing a general service for all ( not just needy who would be a small part) including business but cant profit from it.

       What logic is there in that? Except you can see business getting an important service ‘at cost’
     • dv 2.1.2

       17 September 2015 at 1:55 pm

       Think about it -Courts, police stations, hospitals, schools….. all paying a dividend -pretending to be a stand alone businesses, instead of focusing on their core public duty. It would be a nonsense.

       Don’t give them ideas Brendon
     • Sacha 2.1.3

       17 September 2015 at 2:11 pm

       It’s the only way that shallow fools like English, Joyce and Key know to get ‘accountability’ and ‘performance’ from organisations. Other aspects of governance are beyond them.
   • Tracey 2.2

     17 September 2015 at 11:47 am

     are you sure they are going to spend it on benefits Lily?
     • Lanthanide 2.2.1

       17 September 2015 at 12:46 pm

       Yes, benefits for the rich.
       • Tracey 2.2.1.1

         17 September 2015 at 1:32 pm

         touche
   • Grace Miller 2.3

     17 September 2015 at 2:47 pm

     Yeah, hair straighteners, signs, cafes, bars. Benefits all right – to THEM.

     You’re deluded.
3. dukeofurl 3

   17 September 2015 at 11:22 am

   Isnt this money from ‘selling state houses’?

   Looks like a big lie about money made from the sell off will be used to build more new houses !

   And the Minster for HNZC ?…… that would be Bill English
   • Treetop 3.1

     17 September 2015 at 11:26 am

     “big lie” is an understatement, deluded (false belief) is the word that I would have used.
   • mickysavage 3.2

     17 September 2015 at 11:30 am

     It is hard to say because of the way the accounts are set out but the cash has to come from somewhere.
     • Treetop 3.2.1

       17 September 2015 at 12:57 pm

       Do you know if Key included the cost of insulation in the 398 million spend in the highest year?

       I thought that there was a seperate budget for insulation.

       And what about the cost of heaters and drapes which Labour would also have done?

       Due to the increase of the cost of electricity and the mold war, drapes and a heater are not a proper fix.
4. Treetop 4

   17 September 2015 at 11:23 am

   I have a married friend (both work) who pay market rent, they have to vacate their HNZ home. I am disappointed that after letting HNZ know that their daughter with a young baby lives with them (she is on sole parent) they still have to leave.

   This is mean spirited and the ones being mostly affected are the mother and young baby. The least the HNZ policy could do, would be to not cause a housing problem until the child was age 3. Were the daughter able to live independently I know that she would. I think that the house is a 3 bedroom so the daughter would not be eligible. Excuse, upon excuse, upon excuse……………… from the government.

   I am not surprised at all how the government have pillaged HNZ and they have NO VISION for housing the least well off.

   It is not hard to see why children live in poverty. The government is so impoverished toward children that I am nauseated due to the inadequate spending on children e.g. housing, PPL until 26 weeks, lunches in school and education costs being covered.
5. Brendon Harre -Left wing Liberal 5

   17 September 2015 at 11:34 am

   Thanks Micky Savage this is typical National behaviour of under-handedly destroying state owned institutions providing a public good in a way that avoids legislation, policy announcements and public debate. Their mission seems to be to turn public ethos institutions into privatised ones in preparation for sale.

   National true to form hate publicly spirited organisations. Under Key they have learnt how to act on this whilst carefully concealing their hatred.

   I hope at the political level (Little and co) and at a community level (protests, demonstrations…..) there is a backlash against this.
6. Pat 6

   17 September 2015 at 11:55 am

   As Key and his advisors well know this will not be pressed in any manner by the MSM if at all …..what solution?
   • Ilicit 6.1

     17 September 2015 at 6:54 pm

     MSM……………….sorry, such a reliable beast is no longer available.

     Reset you machine !
7. DH 7

   17 September 2015 at 12:01 pm

   It’s good to see evidence Labour are looking at these annual reports & forecasts, they can be a bit of a goldmine for the opposition.

   It looks like the Nat looters have discovered depreciation which is viewed as an expense for accounting & tax purposes but is really a repayment of shareholder capital.

   Depreciation cash usually goes back in the capital pool for reinvestment but this time they look to be withdrawing it, the projected balance sheets shows a $336 million draw-down of shareholder capital. That makes up $229 million of it, haven’t found the rest yet.

   This is interesting….

   “Payments to the Crown totalling $357 million in 2015/16 will consist of income tax of $143 million, interest costs of $96 million, and the 2014/15 dividend of $118 million.”

   Their interest is paid to the Crown? That needs following up to check if it’s a typo or true.
   • tc 7.1

     17 September 2015 at 12:25 pm

     Depreciation is not cash it’s a write down of assets to reflect wear and tear and added back off any bottom line along with other non cash entries (amortisation, provisions, accruals, goodwill etc) to determine how a business is actually funding itself.

     What they should do is a funds statement across both balance dates, this is how enron was undone, basic cash accounting.
     • DH 7.1.1

       17 September 2015 at 12:38 pm

       Actually it is cash, at least for any business with an operating surplus and HNZ runs a healthy surplus. It gets deducted from operating income in the profit & loss statement.

       It’s not at all a write-down, it’s a transfer from one part of the asset register to another.
       • dukeofurl 7.1.1.1

         17 September 2015 at 3:04 pm

         Dont forget it gets to pay ‘tax’ on its profit first , before it pays the dividend to the government.

         Bill English gest two bites of the pie.
         • Ilicit 7.1.1.1.1

           17 September 2015 at 6:55 pm

           No Duke, he gets the whole pie !!
8. Treetop 8

   17 September 2015 at 12:38 pm

   I’d like to know the average spend of maintenance and upgrades in a 7 year period between Labour and National?

   Also how much of the dividend both governments put back into housing?

   As for the waiting list people are waiting for far too long.
   • dukeofurl 8.1

     17 September 2015 at 1:52 pm

     Thats impossible to find as National lumps ‘maintenance’ together with ‘redevelopment’ to hide the decline in basic existing house maintenance.
     • Sacha 8.1.1

       17 September 2015 at 1:58 pm

       Just like they lump public transport operations with PT capital lately to hide the lack of investment in basic infrastructure like stations.
9. Sacha 9

   17 September 2015 at 1:57 pm

   Could they be taking this capital from Housing NZ to hand over as part of the sales process to financiers/NGOs or private developers? These guys love sweetinging those deals at public expense.
10. Lara 10

    17 September 2015 at 6:28 pm

    So essentially the government is now the biggest slum lord in New Zealand.

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