16 April 2009 Media Statement

National reneges on affordable homes

The Government’s decision to significantly scale back plans to build affordable homes in Hobsonville is a backtrack and raises serious questions about its avowed commitment to supporting New Zealand families into home ownership, says Labour’s Housing spokesman George Hawkins.

“What’s worse is that the move appears to be Treasury-driven. The Treasury has consistently railed against subsidised public housing and Housing New Zealand playing a role as a developer of affordable housing, despite a clear need for this investment.

“The National Government appears to have bought Treasury’s right-wing analysis hook, line and sinker and pulled back on the development of affordable homes in Hobsonville as a result – which begs the question `what else is in store?’

“Under the Labour Government, Housing New Zealand planned to build 500 affordable homes in Hobsonville, and 500 state homes. Prime Minister John Key regrettably opposed the state house building plan, describing it as ‘economic vandalism’”, George Hawkins said.
“John Key did however back the affordable housing development saying last February : “But if you look at Government land, well Hobsonville is in my electorate, they've identified that as a place where affordable housing could be built. I agree with them…”
Yet Housing Minister Phil Heatley confirmed to Radio New Zealand today that the plans had been significantly downsized and would happen ‘on a lot more conservative scale.’

“His comments relate to the release of Treasury documents under the Official Information Act, in which Treasury warns there are significant risks with the Hobsonville plans and others to redevelop Tamaki.” George Hawkins said.

“This is Treasury’s way of calling for reduced investment in housing and it’s disappointing the new Housing Minister has fallen for it. There have been significant declines in home ownership in New Zealand and while house prices have dropped, other interventions are still needed to reverse the trend.

“Mr Heatley claims changes in the housing market are behind the move. But the reality is, there is no better time to build affordable homes. The construction industry is desperate for work, so the Hobsonville development would provide jobs and stimulate the economy as well as increasing the number of affordable homes. You have to wonder what’s coming next.”

ENDS

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