Housing Scheme Working - Ryall

The Minister responsible for Housing New Zealand today described the comments of Labour's housing spokesman Graham Kelly as "mean spirited". "Graham Kelly should be celebrating the fact that 392 former Housing New Zealand tenants have started buying their homes this year - 2452 since the scheme commenced in 1994 - under Housing New Zealand's Home Buy scheme. He should not be asking the company to apologise for it.

"The Home Buy scheme, which has been operating since July 1994, allows eligible tenants, who have rented from Housing New Zealand for at least six months, to purchase their home, or another Housing New Zealand home if it is unsuitable or unavailable, with the help of a suspensory loan worth 10% of the property's value up to a maximum of $12,500.

"Mr Kelly needs to be clear about the role of the Accommodation Supplement in helping low income New Zealanders to meet their housing costs," said Mr Ryall.

"The Government is committed to helping low income New Zealanders who need housing. With the Accommodation Supplement, less families aren't forced to go to Housing New Zealand for assistance in finding suitable good quality housing," Mr Ryall said. "They've got other choices now."

"This Government expects to spend $847 million, distributing the Accommodation Supplement to over 300,000 New Zealand households that need assistance to meet their housing costs," Mr Ryall said. "Labour-Alliance plans to cut the Accommodation Supplement and use the money to fund income-related rents."