Sharechat Logo

Labour would use NGOs to cover emergency housing shortfall

Thursday 7th July 2016

Text too small?

Labour Party leader Andrew Little has unveiled a new plank to the opposition party's housing policy, saying he would use non-government organisations to cover a shortfall in emergency housing that would almost treble the number of beds available. 

In a policy announced just before the anniversary of the party's centenary, Little said a Labour government would boost spending on emergency housing by $15 million a year to allow NGOs to build or buy accommodation. That level of funding would be enough to provide for 1,400 new beds, lifting the total number available to 2,200 from 800 at present. 

"This policy - along with Labour's plans to launch a massive state-back affordable house building programme and build more state houses rather than sell them off - will help end homelessness in New Zealand," Little said in a statement. "The homeless are the sharp end of the government's housing crisis." 

The package forms part of a broader housing package that would see an increase in state house numbers, stricter health quality criteria for rental property, and a major building programme of affordable houses. 

The government, like the Reserve Bank, has been struggling to come to grips with a housing market buoyed by rapid net inbound migration and a shortage of supply in the country's biggest city, Auckland. While Housing Minister Nick Smith has said he wants to skew the market in favour of first home buyers, ministers have resisted calls to enact policies that bring down prices, instead preferring a slower pace of increases. 

Prime Minister John Key this week said he’d support a move to introduce more tools, with rising prices seen as restraining governor Graeme Wheeler from cutting interest rates further. Reserve Bank deputy governor Grant Spencer will deliver a speech this evening on macroprudential tools and risks posed by the housing market, and some commentators anticipate more lending restrictions will be announced to try and slow property price increases. 

On top of that, a growing number of people living in cars and on the streets prompted the government to inject $41.1 million to boost emergency accommodation in the May budget, which would cater for about 3,000 people a year. 

Labour's policy would house 5,100 people a year, saying there are estimated to be 4,200 people sleeping rough or in cars at any given time, and that because of a lack of space it takes more than 155 days to house a homeless person. 

In a fact sheet accompanying the announcement, Labour said it will work with NGOs to ensure homeless people stay housed and can access the services they need, echoing the wraparound social services touted by the government as a more effective way of dealing with the most vulnerable and first flagged through the Maori Party's Whanau Ora policy. 

"The government must support the work of emergency housing providers by making sure essential wraparound services such as addiction, mental health and budgeting are made available," Labour said.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report