Labour criticises Government for pausing state housing projects

Labour list MP Kieran McAnulty said it made no sense to cancel the builds while homelessness was rising. Photo / Mark Mitchell

By RNZ

Labour housing spokesman Kieran McAnulty has condemned the Government’s decision to halt thousands of planned state-housing builds.

State housing provider Kāinga Ora has scrapped hundreds of developments that would have provided nearly 3500 homes, and will sell a fifth of its vacant land.

The agency says the move will save up to $220 million.

McAnulty said it made no sense to cancel the builds while homelessness was rising.

He said the housing crisis in New Zealand continued to worsen and the Government should build more Kāinga Ora homes.

“Homelessness is increasing at unprecedented levels and 15,000 construction worker have lost their jobs since this Government came in.

“People will see this for exactly what it is - the National Party willing to promise all sorts to get elected, with no intention of following up.

“Nicola Willis pledged a 1000 per year net increase in social housing in Auckland, but they’re not going to do that. The only way they do that is if they count the houses the previous government funded.

“Chris Bishop and Tama Potaka said they would build more houses than the previous Labour Government - that would have been a decades-long record. Now they’re selling houses and going backwards in some regions.”

Green Party housing spokesperson Tabitha Paul claimed the cost of not housing people was far higher than providing the housing they needed.

“We know the wait list for public housing across the country is really high and homelessness is increasing, because we’re seeing it more on our streets,” she said.

“Kāinga Ora taking the narrow view that this might save them a few dollars will cost them more in their health fees, their justice fees and all the other ways the housing crisis manifests, when people are not properly housed.”

Housing Minister Chris Bishop ordered Kāinga Ora to deliver a turnaround plan that would ensure financial sustainability.

Kainga Ora is cancelling thousands of planned social houses. Photo / Supplied

‘Commercial sense’

The agency’s plan is to refocus as a landlord, rather than a developer. The number of houses it owned would stabilise from next year.

Chief executive Matt Crockett said Kāinga Ora reviewed more than 460 social housing projects to ensure it was getting the best value for money and supplying houses in the areas of greatest need.

“These reviews were essential to ensuring we only progress new housing projects that make commercial sense and that we sell land which is surplus to our requirements, so we can get on a more financially sustainable footing.

“Our reviews have highlighted an abnormally high number of projects and land holdings that no longer make sense for Kāinga Ora, if we want to get ourselves in a better financial position.”

The agency decided 212 projects that would have provided 3479 homes would not proceed, because they did not stack up financially or were in the wrong places.

Another 254 projects would continue, building more than 1800 new homes.

- RNZ