Waiariki MP Rawiri Waititi. Photo / NZME
Funding $145 million more over the next four years for emergency housing response in Rotorua is giving money to "so-called support services" that live off homelessness but never fix it, says Waiariki MP Rawiri Waititi.
The co-leader of Te Pāti Māori has taken a swing at the Government's additional money set aside in the Budget that will see continued funding for contracted motels that have wrap-around services.
But Housing Minister Megan Woods has defended the Government's approach, saying it was working and feedback was positive.
The additional funding would also fund Te Pokapu - the Rotorua Housing Hub and support services for non-contracted motels. Most of the money, $130m, would go to the Ministry of Housing and Urban Development, while the Ministry of Social Development would get more than $15m.
Waititi said, in his view, the only wrap-around services that worked were those that involved Whānau Ora.
"We can't keep investing into the status quo because quite simply, it's not working.
The Government is so hesitant in giving our Māori providers a go that they constantly reinvest into agencies and so-called support services that continue to live off the homeless but never fix their real problems."
Waititi said there were 26,000 people on the housing register and 200,000 vacant homes in New Zealand.
"They could be introducing a ghost house tax which would tax the owners of these empty houses but once again they are too stubborn to adopt another one of our plans that we have offered up."
He said throwing money at motels was not a solution.
"It is disgusting that Rotorua has had to accept this Government's cop-out approach to a housing crisis that is emergency housing hotels."
He accused the Government of lacking vision and fresh ideas and said the funding announced this week was a "huge amount of dosh to splash out on keeping the status quo".
Renee Hanna, who lives in a contracted Rotorua motel, said $145m could build 290 homes.
She feared most of the money would go on upgrading motels and hiring security guards.
"There are no real services that get us into housing. We don't all want to be in government-managed housing."
She said her motel recently had been completely renovated with new carpets, kitchens, curtains, cutlery and utensils.
"While they upgrade, they stay funded, we stay in them, no need to build homes or help us get houses cause they need us for funding. Too many moteliers and employees rely on these wrap-around services to stay above ground, it's now practically an industry of its own. One vicious cycle and only the vulnerable as ourselves stay poor and stuck."
The Ministry of Housing and Urban Development, which is the government department responsible for funding social service agencies, was asked to comment in response but referred the Rotorua Daily Post Weekend to Woods' office.
Rotorua MP Todd McClay said the funding announcement took Rotorua backwards.
"Homeless motels are not a solution, they cause more problems for our community than they solve. This is starting to feel permanent and is having a huge impact on our reputation - it is taking Rotorua backwards."
He said the Labour Government had given up on Rotorua and local people would be angry and disappointed.
Rotorua mayor Steve Chadwick said the funding helped to address Rotorua's most urgent and immediate housing needs but she did not want people in motels any longer than necessary.
"While there continues to be a need for emergency housing, wrap-around services must remain in place as we build our way out of this crisis.
"We remain loud, clear, and insistent in our message to the Government that Rotorua needs to get people out of motels and into proper, safe, appropriate housing and that we need new homes as quickly as possible to enable that to happen."
Evolve Rotorua spokesman Ryan Gray said the organisation was pleased funding had been ring-fenced for Rotorua.
"However, providing funding for motels to be used as emergency housing for another four years is concerning."
Gray said Evolve Rotorua believed the Government should be focused on building homes and getting people out of motels.
"We hope the Government will look to stop contacting motels for emergency housing long before 2026 to allow whānau to be placed in homes instead of motels."
Restore Rotorua chairman Trevor Newbrook believed the funding showed the Government was committed to using motels as a long-term emergency housing centre.
He said the Rotorua Lakes Council and the Government needed to enforce the District Plan both for contracted and non-contracted motels. Under the District Plan, motels could not be used for long-term housing.
The council is now taking legal action against non-contracted motels to ensure they comply with regulatory requirements. Resource consent applications have been filed for the contracted motels.
Housing Minister Megan Woods told the Rotorua Daily Post Weekend emergency housing would not be needed in an ideal world but the previous National Government "gutted" public housing and did not do anything to encourage affordable housing.
"The reality is it will take more time to build and enable the new housing needed to get people out of emergency accommodation."
She said new housing had not kept pace with Rotorua's population growth.
She said in the meantime, contracting motels was working well.
"Over 120 contracted emergency housing whānau have been supported into other accommodation including private rentals, transitional and public housing since 1 July 2021."
She said contracted service providers were helping to identify immediate needs, social worker support as well as budget training, numeracy and literacy training and after school and holiday programmes for tamariki.
"While formal evaluations are under way, the feedback I have had about the contracted motels has been positive."
She said from her perspective she was yet to see McClay come up with a solution that was not already under way.
"The reality is we are having to fix a broken social housing system in Rotorua."
She said the Government was making progress. It had delivered 73 public and 76 additional transitional homes, with 220 public homes under construction.
She said the Government had also invested $55m in infrastructure to enable new housing and there were 27 KiwiBuild properties under construction, with eight delivered.
There were other things happening to address Rotorua's severe housing needs including stormwater projects, iwi housing, help through the Affordable Housing Fund, progress on building higher-density housing and exploring building houses on reserves earmarked for disposal.
We're celebrating the best of New Zealand as we head into the 2024-25 summer.