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Hidden budget cut in Housing

Tony Ryall National Housing Spokesman

16 June 2000

Hidden budget cut in Housing

Housing Minister Mark Gosche has been silent on his Government's commitment to a state house building programme because he's embarrassed he's had to cut it back, says Opposition Housing Spokesman Tony Ryall.

"The Labour-Alliance Government has effectively cut funding for new state houses, leaving hundreds of families out in the cold.

"The $357 million investment by Labour will fall well short of what's required to build the 2,400 houses that were committed to by Housing New Zealand under the National Government.

"In its last financial year in office, the National led Government invested $125 million in building new state houses. The Labour-Alliance Government is promising to spend an average of $119 million a year.

"Using smoke and mirrors, the Government wants to convince people that it will close the housing gap. All this Government is doing is widening the gap between those lucky enough to be in a state house and other low-income families who rent from a private landlord," Mr Ryall said.

Ends

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