It found that Kāinga Ora exploited its easy access to Government credit, bingeing on borrowing without giving sufficient heed to the financial discipline taking on such immense debts would require.
Housing Minister Chris Bishop announced last month a multi-year shake-up of Kāinga Ora after the report found the debt-laden agency was staring down the barrel of annual deficits of $700 million.
He ruled out a mass sell-off of state houses.
NZ Herald deputy political editor Thomas Coughlan told The Front Page the report was also very critical of the organisation’s governance - which prompted Bishop to call for a refresh of the Kāinga Ora board.
“There is some acceptance of the fact that the financial position is worrying. There is still a lot of dispute over whose fault it is, and whether it’s been asked to do so much, like the urban development it was tasked with doing.
“There’s also a question as to whether it’s Kainga Ora’s fault, or whether the whole model is broken,” he said.
Listen to the full episode to hear more about:
- What Kāinga Ora does;
- Income Related Rental Support (IRRS);
- What types of housing support are available for New Zealanders;
- More on Sir Bill English’s criticism;
- Whether Kāinga Ora can be fixed;
- What the future holds for the agency responsible for over 70,000 public homes.
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.
