20 March 2016

Media release:

Shortlisted state house buyers dominated by profit

Profit-driven companies dominate the government’s shortlisted group of four potential buyers for 1500 state houses in Tauranga and Invercargill.

The government has welcomed Hong Kong property billionaire Dr Henry Cheng Kar-Shun (owner of Pinnacle Group) into the group and he has joined with John Laing Infrastructure Fund and Brookfield Global Integrated Solutions to line up for profits from state house tenants.

Local companies Morrison and Company and Programmed FM are also keen to grab rich pickings from government subsidies for state house tenants.

Even the not-for profits includes Trust House Limited which is making money from pokie machines in clubs and pubs. Buying state houses is another way to profit from vulnerable New Zealanders.

It’s very disappointing to see local iwi trusts (Ngā Pōtiki a Tamapahore Trust and Tapuika Iwi Authority Trust) providing political cover for these money-hungry corporates which will ensure they get first call on tenant rents.

These trusts appear to be taking their lead from the Maori Party which is siding with National against the interests of Maori tenants in state housing.

It is also deeply disappointing to see local groups IHC and Pact seriously damage their reputations in helping the government sell state housing and abandon the responsibility to provide quality, affordable homes for New Zealanders who need them.

New Zealand needs more state housing, not less. We are in the middle of a housing crisis for low and middle income New Zealanders and only the government has the resources and the capacity to provide the large number of quality, affordable housing so desperately needed. Instead of driving vulnerable existing tenants out of state housing the country needs to build more state homes to meet the enormous need.

SHAN will renew our approaches to all the groups involved to encourage them to refuse to be part of this exercise whereby the government begins the biggest privatisation of state assets – $17 billion – in New Zealand history

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