Health officials warned the Government that the cut in funding for its Healthy Housing programme could undermine the $3 million-a-year scheme to combat rheumatic fever.
New Zealand has what many health workers consider a scandalously high rate of rheumatic fever, a Third World disease associated with poverty and especially household overcrowding. The disease is caused by failing to detect and treat - with antibiotics - a sore throat caused by extremely infectious group A streptococcal bacteria.
It is estimated that more than 40 per cent of siblings of a child with a "strep throat" will catch the infection.
Housing NZ spent $126 million from 2001 to last year on Healthy Housing, a scheme in which state tenants in poor areas are put in touch with health and social services, and improvements are made to their home's ventilation, insulation and heating. Many have had overcrowding fixed by having a room added, being shifted to a bigger state house, or being assisted into larger private accommodation.
The scheme, which grew from research showing overcrowding was a major risk factor in the meningococcal B epidemic, has been shown to reduce hospital admissions of young people.