Government Mess Of Its Own Making

The Government has created its own state housing crisis, highlighted by calls from housing advocates to build more houses, ACT New Zealand Social Welfare Spokesman Dr Muriel Newman said today.

"When Labour first passed its flawed Income Related Rents Bill, ACT warned that it would create an unlimited demand for more state houses. This call for more state housing is exactly what we predicted," Dr Newman said.

"Giving preferential rental treatment to low income families in state houses was always going to create an unprecedented demand for state house rentals. But building more houses is not the answer.

"Primarily, the Government should introduce mechanisms - such as time limits - to encourage people to move out of state houses. That would stop ridiculous situations, such as tenants living in state houses for up to 50 years," said Dr Newman.

"Secondly, the Government should scrap income related rents and give everyone the accommodation supplement - that way people would be treated equally, irrespective of who their landlord is.

"State houses should be used to provide temporary accommodation for families in need while they find their feet. Home ownership is an effective means of ensuring an asset base during old age, and families should be encouraged to plan and save for their own home.

"Under Labour's flawed policy, the situation with state housing has become a complete debacle," Dr Newman said,

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