Home leasing programme allegations

  • Murray McCully

I have today sought a report from Housing New Zealand in relation to allegations that the Home Lease Programme has caused significant increases in rents for two tenants in West Auckland.

The company has this afternoon verbally confirmed the essential facts as stated by Mr Goff in Parliament.

The position outlined by Mr Goff is quite unacceptable.

As shareholding Minister I am responsible for communicating to the company the Crown's social obligations.

Those communications have made it clear that the purpose of Home Leasing is to expand the supply of affordable housing for low income New Zealanders.

I have also made it clear to the company in a number of communications that I expect Housing New Zealand rents to follow rather than lead the market. Neither of those requests has been adhered to on this occasion.

I therefore have discussed the matter with the Chief Executive of Housing New Zealand and asked that he advise me of the steps which the company should appropriately take to ensure that the Governments requirements are met.