PM hopes compensation for flawed meth tests by Xmas

About 800 Housing New Zealand tenants are waiting for Govt compensation after they were wrongly evicted due to a discredited meth test. Photo / John Borren

Prime Minister Jacinda Ardern is hoping that compensation for hundreds of Housing NZ tenants that were wrongly evicted over methamphetamine tests will arrive in time for Christmas.

But she is uncertain of the timeline, as the Government may need a law change to ensure that compensation does not wrongly impinge on any welfare payments to those that were evicted.

It follows an apology from Housing NZ last month for kicking out 800 tenants from their state homes for meth tests that were wrongly used and not needed.

Housing NZ admitted to using testing guidelines that had little merit and had cost $100 million in unnecessary tests and cleanup.

Those affected are expected to be eligible for between $2500 and $3000.

Ardern told Radio NZ this morning that paying money without changing certain regulations would make the payment a form of income.

"That's the way our system works. If you're on Government support and acquire additional income, it can lead to your benefit abating away. And we wouldn't want that to happen.

"It's just about making sure that when those payments are made, they are treated correctly. It's better that we get it right than have people penalised."

Asked if they could receive compensation by Christmas, Ardern said: "I would need to ask the minister but I would certainly hope so."

A report last month found that between July 2013 and May 2018, nearly 5000 Housing NZ properties were tested for meth contamination.

About half tested positive for the standard at the time, which was 10 times lower than the new standard that has been in place since May.

Just under 800 tenants were found responsible and evicted. Many threw out all their belongings because of fear of meth contamination.

A further 275 tenants were suspended from being housed by the agency for a period of one year.

The report was commissioned by Housing Minister Phil Twyford following a report from the Prime Minister's chief science advisor which found there was no real risk of harm from properties where meth had been consumed - not smoked.

The discredited meth test meant that tens of thousands of harmless properties had been cleaned and tested at a cost of millions for dollars.