Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


Council Trying To Break Contract

Monday 10 November 2007

Cr Cathy Casey

Council Trying To Break Contract With Charitable Trust Over Affordable Housing

A contract worth $9 million signed between Auckland City Council and the New Zealand Housing Foundation to provide 100 affordable houses over the next four years is at risk because John Banks believes that local councils have no role in the provision of affordable housing. The issue is to be discussed at Thursday's full council meeting.

The contract, signed before the election in good faith by David Rankin on behalf of Auckland City Council allows the New Zealand Housing Foundation to partner with McConnell Property Ltd and others to build a minimum of 100 homes which will then be available for purchase by lower income working families unable to buy their own home at present.

Cr Cathy Casey says she is appalled that the new Council has spent ratepayers money on legal advice to try and find a way to break the contract entered into in good faith by all parties.

"Why on earth would council risk a legal challenge from the New Zealand Housing Foundation with its resultant court costs and possible compensation for breach of contract? The Foundation entered into a bona fide agreement with this council before the election, indeed the land for the first development in Denny Ave, Mt Roskill has already been purchased and the resource consent to build has already been lodged."

"The message this gives to anyone who contracts with the council is that a contract is only secure as along as the current council is in power. If the council changes, contractors cannot be sure of anything!"

"Banks' view that this council should not be involved in increasing the stock of affordable housing is not supported by the Auckland public. He sold off council's pensioner housing in the face of massive opposition. In trying to impose his will again, he is ignoring the substantial consultation that the affordable housing has already gone through to fund this project via a targeted rate which has been in place since July 2005. He is also putting ratepayers' money at risk through a costly legal battle with a small charitable trust – not to mention the gross breach of trust."

"This so-called business friendly council has already spent a lot of ratepayers' money needlessly over the logo debacle with Triangle Television. Now they intend to trample all over the New Zealand Housing Foundation. Who on earth will want to partner with Auckland City Council after this? This is a gross breach of trust."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced


Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>


Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>


Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>


Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>


Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>


Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>




Featured InfoPages

Opening the Election