Treasury concerned at HNZ spending - report

Housing Minister Phil Heatley.

The Government is monitoring the way Housing New Zealand spends money after Treasury expressed concerns about transparency, it was reported today.

Housing NZ was given $124 million to upgrade state houses under the Government's economic stimulus package and Housing Minister Phil Heatley has put the corporation on a monthly reporting regime, Radio New Zealand reported.

It said documents obtained under the Official Information Act showed the Treasury expressed concerns in December about Housing NZ's capital spending.

Treasury recommended ministers seek assurances and greater transparency about the way money was being spent.

Mr Heatley wants details of the maintenance work, upgrades and new state houses that the corporation is working on.

"Monthly reporting is pretty good scrutiny," he said.

"I want it to make sure it focuses on efficient spending during a recession."

Mr Heatley said he was pleased with the way Housing NZ was responding.

- NZPA