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Flush Housing Agency Needs To Be Reined In

Responding to NBR’s report that Kainga Ora made an offer on a property $8 million above its eventual sale price, New Zealand Taxpayers’ Union spokesman Louis Houlbrooke says:

“Our housing agency is acting like it’s overfunded. First it bought a motel in Rotorua for nearly double its CV, and now we learn of another extraordinarily high offer on a property in Auckland.”

“When Kainga Ora overpays for property to build ‘affordable’ homes, it’s not making our housing market more affordable. In fact, it’s increasing housing costs. That fact is only hidden because the cost is spread across millions of taxpayers.”

“Even when Kainga Ora’s property bids fail, the agency’s aggressive offers will be driving up bids from the private sector. Higher purchase prices will translate to higher sale prices once new housing is built.”

“If Kainga Ora continues to spend like drunken, property-obsessed sailor, Megan Woods will need to reign in its funding. A tighter budget should see the agency relearn the importance of value for money.”

© Scoop Media

 
 
 
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