Tama Potaka: Associate Housing Minister on Kainga Ora's crackdown on unpaid rent

The Government says Kainga Ora still needs to be reasonable amid a crackdown on rent arrears. 

The Associate Housing Minister says Kainga Ora's owed $16 million in unpaid rent. 

Currently around 10% are behind on their rent. 

The agency says those willing to enter a repayment plan have their debts reduced, but those unwilling could have their tenancy ended. 

Associate Housing Minister Tama Potaka told Mike Hosking those who need support will be helped, but those refusing to pay will face action. 

Potaka says under the previous government, things got a little bit too loose with not enough being done to reclaim unpaid rent. 

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Episode Transcript

Speaker 1 (00:00):
The rent crackdown is coming from House in New Zealand.
There's to be a new twelve week max on areas.
There's a lot of debt having to be written off unfortunately.
Associate Housing Minister Toma potakers with us. Good morning to.

Speaker 2 (00:09):
You, Thank you, gottle mate.

Speaker 1 (00:11):
Any sense of how much of the areas is genuine trouble.
In other words, something happened to Macarma washing machine and
I'm now in trouble versus people that simply don't pay rent.

Speaker 2 (00:20):
Yeah, I can't tay you percentages, but there's a lot
of it, especially with some of the cost of living
challenges we've got as a country.

Speaker 1 (00:27):
The previous administration is this how we get to write
off debt? Did they simply go if you didn't pay
your rent, don't worry about it?

Speaker 2 (00:35):
Oh? How I describe it as that it was a
little bit loose and didn't do the Mahey, we had
one million bills and debt in twenty seventeen, it went
up to twenty one million in rent debt. It's back
down to sixteen and now the current order board has
taken some pragmatic decisions to get moving on some of
that too.

Speaker 1 (00:52):
Have they taken some pragmatic decisions under your instruction.

Speaker 2 (00:56):
Yes, under the government's encouragement, but it's an operational matter.
We respect it. But what we want to see is
that deep level dropping. And there has been some moves
in the last twelve months. It's gone from twenty one
to sixteen, but we think that it's important for tenants
to do them. If they need some total or some support,
KO will support them. But if they're not abiding by

(01:18):
the rules and kind of order needs to take action.

Speaker 1 (01:21):
Is the twenty one down to sixteen the low hanging fruit.
In other words, it gets a bit harder from here.

Speaker 2 (01:26):
I think that's a fair description. But there are many,
many tenants who have had some challenges. They've got more
than twelve weeks sept but they are pain and being
very reasonable, and I think it's important for current order
to be reasonable as well.

Speaker 1 (01:37):
The socially awkward question, and you got a bit of
it in the house yesterday with the homeless, is where
do they go? Wonder you boot them out? They don't
pay the rent, you boot them out, Where do they go?

Speaker 2 (01:45):
Well? Kind of order will work with people to connect
with others in the space, in the housing space, whether
or not that's worth the likes of the Salvation Army
or others. So it's not just breading out sea later.
But hey, here, we're going to help you get on
a bit of the winnsil program. If you still can't
the love. If you still can't do that, let's connect

(02:05):
with others that can help you get into a better space.

Speaker 1 (02:08):
I asked this question. I don't know if there is
an answer. How big is the social housing problem in
this country? And by that I mean when does it end?
When do you stop building houses? What percentage of the
population will forever need some sort of help? And are
we outlies in this? In other words, are we a
nation of people who just need too much government help?

Speaker 2 (02:26):
Well, I think we need to make sure that the
government's got the housing system, that's building and construction and
infrastructure and zoning all in the right place so private
developers can come in and actually build houses. I think
to your question, we do have less social housing as
a percentage of total housing compared to some other countries. Good,
But what we need to make sure is that those

(02:49):
who are private developers can actually build houses because they
put most sales. If the government takes over that market
at all skews and things go crazy like they did.
I suppose and arts your question, Mike, there is a
core group of people that we definitely need to provide
some support for them, some social alsing and others. We
need to sort of help transition out of that dependency

(03:13):
or that need for social aizing and something better to
do that. We also need to ensure we've got jobs
and businesses humming.

Speaker 1 (03:19):
Congratulations on your press ups. Those press ups? How many
of them? The ones where you leave the ground and clap?
How many can you do? Oh?

Speaker 2 (03:27):
Yeah, might be seady in a right, but look, I'm
just try to get healthy, Michael. Yeah, I'm just trying
to keep fut and healthy. Yes, you are just trying
to keep that.

Speaker 1 (03:35):
You are a machine. Well done. Congratulations on that. If
you haven't seen the video, look it up. I'm sure
it's gone viral as they say. But the guy does
press ups while you know, clapping in between. If he
can do thirty of those, that is one fit individual.
Timer Potacher.

Speaker 2 (03:47):
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