October 18th, 2024
Labour's Housing spokesperson, Kieran McAnulty, on Tuesday voiced strong criticism over the Coalition Government's refusal to commit to long-term funding for social housing, highlighting the immediate impact on community housing developments and the broader implications for families across New Zealand.
Driving the news: Funding uncertainty halts housing projects
"The Coalition Government’s refusal to commit to ongoing funding for social housing is seeing the sector pull back on developments and families watch their dreams of securing a home fade away," McAnulty said, underscoring the deepening crisis as the government remains silent on the continuation of the Income Related Rent Subsidy beyond June 2025.
What's happening: A ripple effect through the housing sector
McAnulty pointed to the tangible consequences of this indecision, noting, "Community housing providers are pausing developments on new public housing places because the Government won’t commit to funding for Income Related Rent Subsidy past June 2025."
He highlighted the case of the Salvation Army, which has seen 70 desperately needed homes stalled due to the current funding ambiguity, marking a significant setback in addressing the housing shortage.
Zoom in: Kainga Ora's predicament
The uncertainty extends to Kainga Ora, New Zealand's public housing agency, which faces the potential need to sell off 10,000 social houses without assured funding post-2025. "During the Annual Review into Kainga Ora last month, officials explained that the Luxon Government commissioned advice from Treasury that said if no funding is provided post 2025 then Kainga Ora will need to sell 10,000 social houses," McAnulty noted, emphasising the gravity of the situation.
The bottom line: Labour calls for immediate action
McAnulty criticised the government's prioritisation, contrasting its swift action on tax cuts for landlords with its hesitancy to secure housing funding.
"They didn’t wait for the budget to announce $2.9b tax cut for landlords, so they shouldn’t wait until the budget to announce funding that will actually help people," he said, calling for a straightforward resolution to affirm the funding and provide the necessary certainty for housing providers, families, and the construction workforce alike.
Experts weigh in: The broader implications
The lack of commitment not only jeopardises the construction of new homes but also risks the employment of local tradespeople and apprentices, further exacerbating the housing crisis and economic disparities. McAnulty's call to action underscores the urgent need for government intervention to ensure the continuation and expansion of social housing initiatives, essential for addressing New Zealand's growing housing challenges.