The Government spent over $320 million on emergency accommodation in the 12 months to March 2021. Photo / John Stone
The Government spent over $320 million on emergency accommodation in the 12 months to March 2021. Photo / John Stone
Nearly $100 million has been paid to the country's top 50 emergency housing moteliers, including one that received $7m in the nine months to March 2021.
The total figure is just $10m shy of the amount for the entire 2019/2020 financial year, and five times the amount from four years ago.
National's Social Development and Employment spokeswoman Louise Upston says the "eye-watering" figure is a "stark indicator of just how big this crisis has become".
Meanwhile, Minister for Social Development Carmel Sepuloni defended the spending as "better than forcing people to live in cars or in tents" and said the total spending and number of clients had started to dip.
The figures, which cover the nine months to March 2021, show $99.9m was paid out to the top 50 providers. The Government spent $322.6m overall in the 12 months to March on emergency housing grants.
It comes as the latest data shows a record 23,687 applicants on the public housing waitlist - up from 22,521 in December - representing a 45 per cent increase or over 7000 households year on year.
Total housing support spending over the three months amounted to $964.9 million, an increase of more than $150m since the quarter to March 2020.
The top emergency motel recipient for the past nine months period was MCentral Apartments Manukau, which received $7.1m. The company received a further $3m the previous year.
National's Social Development and Employment spokeswoman Louise Upston says the "eye-watering" figure is a "stark indicator of just how big this crisis has become". Photo / Paul Taylor
The previous largest supplier of Government emergency housing, Silverfern Property Services, an Auckland-based company, received nearly $10m over 2019/2020, and a further nearly $5m the three years prior to that.
The company recently went into liquidation.
"The dramatic increase in payments to moteliers is proof that the Government has ignored official advice that week-by-week motel accommodation is not suitable for families or people with high needs," Upston said.
"Not only are there more people living in motels, the average length of time people are forced to stay in emergency accommodation continues to increase.
Between March 2018 and December 2019 the average stay more than doubled from 3.3 weeks to 7.7 weeks, and now the average stay is 11 weeks as at March 2021, Upston said.
Information released to Upston under the Official Information Act showed police were frequently responding to reports of violence, intimidation, public urination, drug deals and gang involvement at emergency housing motels.
"The fact that emergency housing and crime has been identified by police as a major focus for its operational deployment signals how serious this crisis is," Upston said.
"The Government must stop placing vulnerable families in motels without adequate support or regard to the risks they are exposed to. Leaving over 4000 children to live exposed to violence, drug use and gangs is an utter disgrace."
Minister for Social Development Carmel Sepuloni while the length of time some were in emergency housing had increased, costs and numbers of clients were decreasing in recent months.
Social Development Minister Carmel Sepuloni. Photo / Mark Mitchell
Costs fell from a peak of $83m in the quarter to December 2020, to $77.8m in the quarter to March 2021.
The number of households accessing emergency housing also fell from 9823 to 8023.
The Government remained on track to have 18,000 new public houses built by 2024 to help reduce need, Sepuloni said, along with more transitional housing.
"The housing crisis did not start in the last few years, it is a result of decades of inaction," Sepuloni said.
"National failed to invest properly for additional supply of public housing.
"This means that in parts of the country vulnerable New Zealanders are unable to find or afford an appropriate place to live.
"Emergency Housing is a temporary solution it is better than forcing people to live in cars or in tents."
