Cost-cutting to hit tenants

Housing NZ is looking at requiring some state tenants to move out of houses that are too big for them in a bid to get more savings out of its budget and reduce the waiting list.

It is also looking at making some state house tenants pay their own water rates and taking steps such as painting their houses less often to find "efficiencies".

Budget documents issued this week revealed HNZ is considering a range of measures as part of the Government's demands to find further savings.

In the documents, the Treasury notes Housing New Zealand planned to talk to minister Phil Heatley about ways to ensure state houses were used more effectively.

Its proposals included more use of "incentives and obligations" to ensure housing stock was fully used - indicating it is looking at requiring tenants to move to smaller homes rather than stay in houses that are too big for their needs.

In the pre-Budget report, the Treasury said Housing NZ should develop a programme to implement any such changes by 30 June. Yesterday, however, a Housing NZ spokesman said the proposals were still ideas and none were near implementation.