Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Pact Group backs out of Invercargill social housing contract

Friday 27 May 2016 11:18 AM

Charity organisation Pact Group backs out of Invercargill social housing contract

By Paul McBeth

May 27 (BusinessDesk) - Dunedin-based charity organisation Pact Group has backed out as the sole bidder to buy and manage 348 state houses in Invercargill, putting the government's planned tender on hold and delivering a political blow to its social housing devolution project.

Finance Minister Bill English and his associated Paula Bennett said Pact withdrew from the process because the deal wasn't the best way to achieve their goals, and as the only party short-listed, that procurement has been put on hold. Pact provides services for more than 1,600 people with intellectual disabilities, recovering from mental illness, and those with addiction problems across the West Coast, Otago, Southland and Dunedin.

"While I am disappointed that Pact is no longer participating in the Invercargill transaction, their decision should reassure social housing tenants that the process is robust and that interested parties have enough information to make the best decision for themselves and the tenants," Bennett said in a statement.

The government wants to sell down a proportion of its Housing New Zealand stock and overhaul the agency's property portfolio of 65,000 homes, many of which it's deemed to be unsuited to tenants' needs. Tauranga and Invercargill were the first tenders where registered community housing providers could bid to buy the properties and manage a range of social services for the tenants.

The procurement for 1,134 properties and tenancies in Tauranga is still under way, Bennett said. The three groups bidding for that contract are one group led by UK housing provider Pinnacle Community Housing, a second consortium managed by HRL Morrison & Co, and social housing provider Accessible Properties, a subsidiary of IHC, which provides services to people with intellectual disabilities.

English and Bennett also said the government is considering a proposal by Horowhenua District Council to look at a joint transfer of 115 council flats and 250 state houses in Foxton, Levin and Shannon to a community provider. The government is consulting local iwi until July 1, and will outline a proposal with the local body if those talks are positive.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>

ALSO:

Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>

ALSO:

Price Of Cheese: Fonterra CEO Goes Early After Milk Price Trimmed

Aug. 15 (BusinessDesk) - Fonterra Cooperative Group chief executive Theo Spierings is leaving the role early after the world's biggest dairy exporter lowered its farmgate payout and trimmed its dividend to retain cash. More>>

ALSO: