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Budget 2006: 2000+ homes added over three years

Hon Chris Carter
Minister of Housing

More than 2000 homes added over three years

More than 2000 houses will be added to the state housing network over the next three years as part of Budget 2006, Housing Minister Chris Carter announced today.

"This commitment is part of an ongoing effort by the Labour-Progressive government to rebuild the state housing network and ensure every family has access to an affordable home regardless of their income," Chris Carter said.

"When we took office, the number of state houses in New Zealand had declined by 771 in 1999/2000, despite mounting demand and poverty. The following year we added 496 houses back in to the network. This coming financial year we will add 815, and by 2009, we will have added a total of more than 7200 extra homes since 2000.

"Budget 2006 adds $62m capital over the next three years to the $597m already earmarked to continue this programme. The existing funding will be largely derived from rental income earned by the Housing New Zealand Corporation that won't be returned to the Crown as a dividend," Chris Carter said.

"The government is seeking to put housing provision on a stable, sustainable footing. To achieve this the Budget draws on work undertaken over the past two years to identify how many extra houses are needed annually in future to ensure the corporation is able to keep pace with demand.

"In addition to the provision of extra homes, Budget 2006 also sees further spending on modernising old state houses, community renewal projects, healthy housing projects, and energy efficiency," Chris Carter said.

"Budget 2006 adds $10m capital in 2006/07 to the funding already earmarked for modernization, bringing the total allocated to $155.6m over the next three years. This is a reflection of the emphasis being placed upon maintaining and enhancing the Crown's second largest physical asset, state housing, which is worth about $11bn.

"Quality, affordable housing is fundamental to the health and well-being of communities, and Budget 2006 acknowledges that," Chris Carter said.


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