The Prime Minster John Key is in the Western Bay of Plenty today, invited by local MP Todd Muller.

In a stand up with media Mr Key said The Government was concious of the issue of homeless people in Tauranga.

"One of the driving factors of that has been rising rents and accommodation costs here in Tauranga and really effectively the spill over effect of what's been happening in Auckland.

"As more Aucklanders have come down to Tauranga and realised what a great place it is to live, it's put pressure on systems so part of what we did in Budget 2016 was a $41 million grant essentially for emergency housing.

"About 240 of those places will be in the broader Bay area but we're obviously conscious of what's happening and the local MPs have said there's more we can do."

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This morning Mr Key has made an appearance at Mount Intermediate in Mount Maunganui.

Students of the school ran an assembly for the Prime Minister before he was shown around the school's new and refurbished classrooms.

Later this morning he will visit Beca and Trustpower buildings in the Tauranga CBD.

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