Housing Minister Chris Bishop announcing a multi-year shake-up of public housing agency, Kāinga Ora. Photo / Mark Mitchell
It’s been five years since social housing in New Zealand was put under the banner of Kāinga Ora.
Over that time, questions have been asked about the agency’s financial stability and its responsibility to also take the lead on and develop urban renewal projects.
The Government made it a priority to investigate the state of Kāinga Ora, ordering an independent review led by former Prime Minister, Sir Bill English, that painted a stark image of its financial situation.
It found that Kāinga Ora exploited its easy access to Government credit, bingeing on borrowing without giving sufficient heed to the financial discipline taking on such immense debts would require.
Housing Minister Chris Bishop announced last month a multi-year shake-up of Kāinga Ora after the report found the debt-laden agency was staring down the barrel of annual deficits of $700 million.
He ruled out a mass sell-off of state houses.
NZ Herald deputy political editor Thomas Coughlan told The Front Page the report was also very critical of the organisation’s governance - which prompted Bishop to call for a refresh of the Kāinga Ora board.
“There is some acceptance of the fact that the financial position is worrying. There is still a lot of dispute over whose fault it is, and whether it’s been asked to do so much, like the urban development it was tasked with doing.
“There’s also a question as to whether it’s Kainga Ora’s fault, or whether the whole model is broken,” he said.
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The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
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