Remuera state house could rent for $70 a week

A solo parent on an income-related rent could live in a half-a-million-dollar state house in exclusive Remuera for as little as $70 a week, Housing Minister Mark Gosche says.

The three-bedroomed home is one of four Housing New Zealand properties in Auckland with a government valuation above $475,000.

The other three, in equally exclusive Orakei, are worth between $475,000 and $525,000.

The value of the properties has angered Act social welfare spokeswoman Muriel Newman, who learned of them during question time in Parliament.

Mr Gosche told Ms Newman that a solo parent, with two children, living on the domestic purposes benefit and with no extra income, would pay about $70 a week to live in one of the houses.

The properties were probably worth so much because of the land value, he said. The houses were probably not worth more than $70 a week.

But Ms Newman said it was ridiculous for the state to own four properties worth $2 million when it could get better value for money elsewhere.

She yesterday asked Housing NZ at a Parliamentary select committee whether high-value state housing was fair on taxpayers.

Housing NZ chief executive Michael Lennon said it was "rare" for the corporation to own such expensive real estate.



The concerns were raised as debate raged in the committee over the Government's policy to stop selling state houses. The introduction of income-related rents has caused applications for state housing to climb from about 2500 in August to about 3200 in September.

The corporation is building 398 houses this year to meet demand.

Mr Lennon said he had talked "generally" with Mr Gosche about the sale of state houses, but the Government held the position that there were to be no such sales.

Asked by National housing spokesman Tony Ryall if the Government was prepared to sell state houses for which there was no demand, Mr Gosche replied: "We would sell them as part of efficient stock management."

This prompted Mr Ryall to accuse Labour of breaking its pre-election promise not to sell state houses.

"This is the ultimate hypocrisy."

Mr Gosche later said that it would be "crazy" not to sell properties that would never be rented, even with income-related rents.

The number of houses likely to be sold was probably very small, he said. "It doesn't appear to me that we've got a lot of surplus."

- NZPA