Prime Minister John Key's new social housing plan will only be successful in shifting the problem, not solving it, one Rotorua MP says.
In his first public address of 2015 yesterday, Mr Key outlined plans to expand the provision of social housing, which could allow the sale of up to 8000 state houses nationwide by 2017.
Mr Key said tenanted state houses could be sold to approved community housing providers or iwi at a discount rate so long as the houses remained as subsidised rentals.
"Locally based providers are closer to their communities and can be more responsive to the needs of tenants, such as in the mental health, disability or budgeting areas."
But, New Zealand First's Rotorua-based MP Fletcher Tabuteau said the proposal to sell state houses was "passing the buck to charities".
"This plan does not address or solve the housing crisis in New Zealand, it's just shifting the problem and if it doesn't work, the blame will fall on those charities. It's a cynical solution."
Mr Tabuteau said the plan would not just implicate Aucklanders, Rotorua tenants would feel the effects too.
"It will be a matter of frustration for Rotorua people.
There are too few houses to buy and rent, that's the real issue, not whether the property is publicly or privately owned.
"The Prime Minister is deliberately missing the point - there is high demand for housing but limited houses."
The new plan could also see up to 5000 better-off tenants moved out of state housing to make way for needier cases.
In his speech, Mr Key said tenants who were paying market rents, or near market rents, to Housing New Zealand would have their tenancies reviewed.
Housing New Zealand would continue to be the biggest social housing provider and by 2017 it would provide at least 60,000 properties nationwide, he said.
Maori Party co-leader Te Ururoa Flavell said the social housing announcement was a mixed bag.
"The intent and focus on vulnerable whanau is good, but we are not confident this will deal with the two key issues of healthy and affordable homes nor does it address the immediate needs of those that are homeless or currently living in substandard conditions."
In November, Housing New Zealand regional manager tenancy services Darren Toy told the Rotorua Daily Post the agency had 677 properties in the district.
At the time there were 36 families on the waiting list for a state house.