KEY POINTS:
The country's largest new housing development on Crown land got a boost at Thursday's Budget when $37.5 million was devoted to initial work on the project.
The money was set aside to start developing the 167ha Hobsonville site in Auckland into a mixture of new houses of which around 500 will be state homes.
Housing Minister Maryan Street yesterday said the Government would get a solid return on its investment.
"We anticipate the development to generate net revenue of $4.7 million in 2011/12 from the sale of houses and land," she said.
About 8000 people could eventually live at Hobsonville.
But Treasury's risk assessment in Budget documents showed more state money would be needed in future budgets and the $37.5 million was just for Precinct One.
"Capital funding will need to be provided for the remaining four precincts in future budgets. This will increase gross debt," Treasury said.
