Broken Promises Broken Homes
John Key’s Government is not investing enough to meet its own limited goals for state housing, said the Green Party today.
New information received through questions for written answer shows that the Government has budgeted $245 million from 2009- 2011 for upgraded houses. This was after they identified that $2 billion is needed to make the houses liveable.
There is also $394 million budgeted for ongoing maintenance but this does not appear to cover the deferred maintenance costs that were identified in 2008.
“After criticising Labour for the conditions of the state houses, this Government is now failing to make state house upgrades a priority as it promised,” said Metiria Turei, Green Party Co-leader today.
“The Minister has also promised to build 1550 new state houses, but the information provided by Housing New Zealand reveals a $140 million hole in their budget.
“This shortfall needs to be addressed or the Minister will be breaking his promise. I hope he doesn’t try to claim houses that were started under the previous Government as part of the 1550 that he has promised to build.”
The QWA’s show that to meet Minister Phil Heatley’s commitment to build 1550 state houses would cost Housing New Zealand Corporation an estimated $427 million but there has only been $290 million budgeted for it.
“There has only been $18 million provided for upgrading and acquiring state houses in the recent 2010-2011 budget but the Minister is claiming that $189 million will be spent,” Mrs Turei said.
“Where is this money going to come from? It must mean cuts to other parts of Housing New Zealand’s budget. The Minister has said it will come out of baselines and has mentioned the rental subsidy budget. Does this mean cuts in support for people living in state houses so they have to pay more?
“The Minister has failed to address the issue of making state houses liveable and failed to provide enough houses to meet the needs of vulnerable New Zealanders who don’t have access to suitable housing.
“Housing deprivation drives inequality and the evidence shows that inequality is bad for everyone in society not just the most vulnerable people directly affected by poverty, said Mrs Turei.
For more information
Questions for Written Answer http://www.greens.org.nz/
The Government spent $20 million on new state houses last year, see Same goal, less money for Housing NZ- http://www.nzherald.co.nz/ Minister Heatley release identifying $2 billion dollar problem with housing stock - Labour in La La land over house numbers http://www.beehive.govt.nz/ The current 2010-2011 budget for upgrading and acquiring state houses is $18 million please see page 50 in the document below. There are forecast cuts to HNZC expenditure budget of $40 million in the next two years are on page 11 in Vote Housing 2010, Treasury http://www.treasury.govt.nz/