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Heatley eyes affordability, supplement

Housing Minister Phil Heatley has confirmed the Government is considering changes to the accommodation supplement and has slammed the cost of new subdivisions.

Monday, July 30th 2012, 12:00AM 3 Comments

by The Landlord

He told TV3’s The Nation yesterday that the Government was concerned about the $1.2 billion annual cost of the supplement, and the $600 million that went on state house rental subsidies.

It plans to review the situation in relation to state rentals to stop people being able to live in subsidised accommodation rent-free.

"We are reviewing it because we think it probably can be targeted better.

The concern was first flagged in this year’s Budget and Labour Minister Annette King has been lobbying for the supplement to be scrapped, saying it simply lines private landlords’ pockets.

But Heatley said that, for now at least, the focus is on state housing.

"For example you know when you've got someone in a state house getting a really cheap rent, you know 80 bucks a week, and then they have boarders who get the accommodation supplement, you know that household could be getting that state house almost for free.

"We're looking at this at the moment.

"I'd say by the back-end of the year Ministers will get a good feel of where we're going to head with this."

But he said the Government had no intention of returning to the market rents introduced by the previous National Government in 1991.

And he indicated the Government wanted to see changes in planning regulations covering housing in cities like Auckland to provide more sections and improve the affordability of new housing.

"Essentially we need more supplies so we need more houses and we need more sections," he said.

He said the Government would be eyeing greenfield developments. "Most cities have you know some low unproductive land that they could release for housing.

"Extending city limits to provide for more sections should be done in combination with subdividing large properties within existing city limits.”

He said consent costs for subdivision of existing sections were too high "and that's crazy".

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Comments from our readers

On 5 August 2012 at 11:03 pm HC said:
In all honesty, Mr Heatley tends to spread information that is not always representative of the true state of affairs. Claims of rorting by WINZ clients and Housing NZ tenants are rubbish, as WINZ only pays roughly half of actual rent costs to clients (http://www.workandincome.govt.nz/manuals-and-procedures/income_support/extra_help/accommodation_supplement/accommodation_supplement-90.htm). Housing NZ tenants are NOT even allowed to sublet rooms to boarders, and NO one living in a state subsidised home is allowed to claim the accommodation supplement anyway. Only fraud could lead to abuse, and budget advisors have no evidence of "rorting". Also I am not sure that Annette King is quoted correctly here.
On 9 August 2012 at 12:28 pm Anna Rogers said:
Actually they are not rubbish. Our family lived in a state housing area for years although we rented privately, and we saw this kind of rorting going on all around us i.e some state tenants with copious relatives crowded into the house (and might I add creating untold problems in the neighborhood). While they may not all have been entitled to accomodation supplements they WERE on various benefits which is another thing I think needs to be looked at. In some households with various benefits going into the one state house, the principle tenant is paying a peppercorn rental of the amount Heatley refers to yet the total household income exceeds that of most working couples. As for budget advisors having no evidence of rorting of course they don't. People rorting the system are hardly going to tell budgeters now are they?
On 10 August 2012 at 2:21 pm HC said:
@ Anna Rogers -

Thanks for your honesty that you make clear that you have no proof of these people claiming the accommodation supplement, because I very much doubt they could and would have. There is a difference between "rorting", which both Heatley and Paula Bennett claimed was going on and "not being illegal" and actual fraud, which I am sure happened in this case you refer to.

This represents a failure of Housing NZ to check and enforce rules, which is a different story. I know from someone who lives in a Housing NZ home and does NOT "rort" or cheat, but he told me that the person doing an inspection was not much interested in his place or faults needing fixing. She just wanted a list ticked off and get on to have her lunch. Maybe staff morale needs to be looked at, but sacking 10 per cent and restructuring endlessly is hardly helping that.

Budget advisers ask clients for documents and proof of their circumstances and spending. So I am sure they are rather well informed.

Perhaps affordable rents would also stop what you describe.

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