David Carter National Housing Spokesperson

24 September 2001

Housing scheme a free ride for select few

Pouring nearly $2 million of taxpayers' money into a housing scheme for private homeowners is creating a gravy train for a select few, says National's Housing spokesperson, David Carter.

Government documents have revealed that around 70 private homeowners living in "substandard" housing have been given interest-free suspensory loans, which are later written off if certain conditions are met. Each house has cost on average $20,000 to $25,000.

"I question what is the criteria for getting this free ride at the expense of the taxpayer? Who gets the money?" Mr Carter said.

"This smacks of a secret Closing the Gaps initiative, with taxpayers being expected to gift as much as $50,000 for one property. "Thousands of New Zealanders have to accept the responsibility of home ownership and its associated costs, so why have 70 private homeowners been able to just hold out their hands to the Government.

"This is a blatant abuse of Housing New Zealand money and sends completely the wrong message to those people struggling with the ridiculous anomalies of the current state housing system in this country," Mr Carter said.

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