Kāinga Ora board chairman Vui Mark Gosche has resigned amid an ongoing Government review into the agency’s performance.
In a statement today, Housing Minister Chris Bishop thanked former Labour minister Gosche for his many years of public service.
“Mr Gosche tendered his resignation as chair yesterday evening. He will remain a member of the board until the end of March.”
Bishop announced the board’s deputy chairman John Duncan would take over the head role until a new appointment is confirmed.
“The legal minimum for the board of Kāinga Ora is eight members. Over the next month, the Government will be working to appoint a new member to stay within that legal minimum, and will then appoint a new chair.
“On behalf of the Government, I thank Mr Gosche for his many years of service, including the previous six years on the Kāinga Ora board, and I wish him well in his retirement,” said Bishop.
Gosche told the Herald it had been a pleasure to serve on the boards of both Housing New Zealand and Kāinga Ora.
“After nearly six years as board chair, I’ve resigned to spend more time with my whānau.
“Housing is a fundamental right, and I’m proud of how Kāinga Ora and its people, and partners, have made a positive difference in the lives of so many people,” said Gosche.
Gosche’s resignation comes after Bishop, who has been a long-standing critic of Kāinga Ora’s financial management, had promised to review the performance of the agency within 100 days of the new Government taking office.
The independent review would provide a report to the Government by the end of March.
In December, Bishop announced former National Party Prime Minister and Finance Minister Sir Bill English would lead the review into the agency’s financial situation, procurement and asset management.
Bishop cited a report from the Treasury and the Ministry of Housing and Urban Development that found Kāinga Ora’s level of debt had grown from $2.7 billion in 2018 to $12.3b in June last year.
“Advice released last year suggests that if Kāinga Ora continues on its current trajectory, their debt would reach $28.9b by 2033,” Bishop said in December.
In January, Bishop demanded Kāinga Ora take action with “utmost urgency” after a response to an Official Information Act request seen by his office revealed 3906 public homes, 5 per cent of the country’s public housing stock, were vacant as of October 31.
More than 25,000 people were on the social housing wait list.
The response outlined how 786 homes - 20 per cent of new public homes built between June, 2022 and October last year - were empty. Of those homes, 287 of them were empty for more than 120 days.
“I was shocked to discover how many hundreds of newly built Kāinga Ora homes are sitting vacant for months at a time when New Zealand is facing a housing crisis and is desperately short of social houses,” Bishop wrote in a letter to Gosche.
“I wish to make clear my expectation that, with over 25,000 people on the social housing wait list, social houses owned by Kāinga Ora are not to be left empty for a day longer than absolutely necessary.”
He outlined his expectation Kāinga Ora worked with “much greater urgency” to fill vacant homes. In a statement that accompanied the release of the letter, Bishop said it was “disgraceful” some Kiwis on the wait list were living in motel rooms, cars and on family members’ couches while new public homes were empty.
“I expect Kāinga Ora to be working through the social housing waiting list alongside [the Ministry of Social Development] with utmost urgency to ensure as many families as possible have safe, warm, dry homes to live in.”
New Zealand’s stock of public housing increased by a net 13,977 between October 2017 and October 2023. Over this time, Kāinga Ora built 10,116 homes.
Nonetheless, the number of applicants on the wait list for a home rose from 5820 to 25,433.
Benjamin Plummer is an Auckland-based reporter who covers breaking news. He has worked for the Herald since 2022.
OPINION: New Zealander reflects on delivering speech at St James' Palace.