John MacDonald: Why we should be nervous about state housing changes

Be very nervous. 

That’s my advice regarding the Government’s big re-set for state housing provider Kāinga Ora. 

Don’t get me wrong. Some of the stuff it’s doing makes perfect sense. But, overall, there’s potential for it to be a real cluster. 

Let’s start with the positives, though. It seemed to me that, under Labour, Kāinga Ora had become some sort of urban development agency. 

In fact, I’m pretty sure that was the pipedream old Phil Twyford had back in the day.  

Which, when you think about it, is somewhat ironic given it was Labour that came up with the plan in the first place to have the state provide a roof over the heads of people who can’t afford their own place. 

You would think that Labour, of all parties, would have the basic gist of the state housing programme embedded in its DNA.  

So, tick: I’m all for housing minster Chris Bishop’s plan to get Kāinga Ora to focus on its knitting - which is to provide houses and be a good landlord. 

The Government’s also going to sell 800 or 900 state houses a year and demolish about 700. These will, generally, be the old-school weatherboard and tile jobs. The places that people talk about having “good bones”. 

Two hundred of the ones that are going to be sold are worth around $2 million each - which has more to do with their locations. Some of them are in places like Remuera. 

And that makes sense to me. Although, to be fair, Kāinga Ora has already been doing this. The Government’s just getting it to do more sell-offs.  

And it’s going to replace them with new builds. It’s also going to do some alterations to other existing properties. 

And the upshot is - according to the Government, anyway - is the number of state houses will stay the same as it is now. 

Woohoo! Big deal! 

Because, when you think about the fact that there is a social housing waiting list with 20,000 people on it; plus 1,000 households living in emergency housing; the Government crowing about keeping the number of state houses the same is a pretty hollow. 

On top of that.. According to the last census, there are also 5,000 people living “without shelter”. 

So you take all of those numbers and, surely, it tells you that we should have more state houses than we do now.  

In fact, not should - we need to have more state houses than we have now. 

You’d think so. Well I would, anyway. Not Chris Bishop, though.  

Labour, of course, is ripping into the Government. Saying that this plan shows it’s more interested in cost-cutting then housing people. Which I agree with. 

And it’s one reason why I’m saying we should be very nervous about what the Government is doing. 

The other reason - in fact, the main reason why I’m saying we should be nervous about the Government’s new plan for state housing - comes down to 14 seconds from the minister’s interview with Mike Hosking on Newstalk ZB this morning. 

I heard him and thought 'hang on a minute'. 

He said: "Fifty percent of people on the register, they just need a one-bedroom unit. They don't need a three or four-bedroom unit, they just need a one-bedroom unit. And, actually, we can build that really cheaply and some of the stuff we're doing on the granny flats, for example, making it easier to build one or two-bedroom granny flats on properties will make a real difference there."  

He’s right when he talks about what types of properties people need.  

This has been known for quite a while. Which is why we've seen Kāinga Ora demolish some of those big houses and replace them with more smaller homes on the same site. 

And the reason more and more people only need one bedroom is because we do not have as many large families anymore. Society is way different from back i

Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Mornings podcast with John McDonald
from News Talk ZB.

Speaker 2 (00:13):
Here's my advice to you this morning. Be very nervous.
Be very nervous. That's my advice regarding the government's big
reset for state housing provider Kaying Order. Now, look, don't
get me wrong. Some of the stuff that it's doing
makes perfect sense. But overall, I think there is potential

(00:34):
for it to be a real cluster and I'll tell
you why shortly, but let's start with the positives. It
seemed to me that under labor Caying Order had become
some sort of urban development agency. In fact, I'm pretty
sure that was the pipe dream of old Phil Twyford
back in the day, remember him, Which, when you think

(00:57):
about it is what's the word ironical or strange when
you think about it, strange Given it was labor that
came up with the plan in the first place, have
a state or have these state provide a roof over
the heads of people who can't afford their own place
a basic plan. You would think that labor of all
parties would get the basic gist, or would have the

(01:20):
basic gist of the state housing program embedded in its DNA,
wouldn't you so, tick. I'm all for Housing Minister Chris
Bishop's plan to get KO to focus on its knitting,
which is simple, provide houses and be a good landlord.
The government's also going to sell eight or nine hundred
state houses a year and demolish about seven hundred. Now

(01:44):
you'll know, you'll know these, you will have them in
your head. Generally they'll be the old school where the
board and tile places, the places that people talk about
having good bones. People generally love to snap them up,
so they won't have any problems selling them. Two hundred
of the ones two hundred of the ones that are
going to be sold are worth around two million dollars each,

(02:07):
which has more to do with their locations. Some of
them are in places like Remawara. That makes sense to me,
although KO has already been doing this, but the government's
just going to get it to do more and it's
going to replace going to replace them with new builds.
It's also going to do some alterations to other existing properties.

(02:28):
And the upshot is, according to the government anyway, the
upshot is the number of state houses will stay the
same as it is now. Woohoo, big deal really, because
when you think about it, the fact that there is
a social housing waiting list with twenty thousand people on it,
plus a thousand households living at emergency housing. You know,

(02:50):
the government crying about keeping the number of state houses
the same. I'll be kind, it's pretty hollow. It deserves
a big woohoo, doesn't it. I mean, so what on
top of that, By the way, according to the last census,
there are also five thousand and five thousand people living
quote without shelter. See you take all of those numbers
and surely it tells you that we should have more

(03:12):
state houses than we do now. In fact, not should
we need more state houses than we have now? You
would think so well, I would not. Chris Bishop, though,
Labor of course, is ripping into the government saying that
this plan shows it's more interested in cost cutting than
housing people, which I agree with, And it's one reason

(03:33):
why I'm saying that you should be very nervous about
what the government's doing. The other reason, in fact, this
is the main reason why you should be nervous about
the plan or the new plan for state housing. It
comes down to fourteen seconds. Fourteen seconds from the minister's
interview with Mike a couple of hours ago. I heard
this and I thought, hold on a minute, Hold on

(03:54):
a minute, have a listen.

Speaker 3 (03:55):
A fifty percent of people on the register, they just
need a one bedroom unit. They don't need a three
or four bedroom unit. They just need a one bedroom unit.
And actually we can build that really cheaply. And some
of the stuff we're doing on the granny flats, for example,
make it any need to build one and two bedrooms
granny flats on copies will make a real difference.

Speaker 2 (04:10):
Yeah, jehis, I'll come back to that bit. I mean,
he's right though, when he talks about what types of
properties people need. This has been known for quite a while,
which is why was sincaying or to demolish some of
those big houses, you know, the ones, the ones that
talked about earlier, weather board and tile places, some of
them two stories. It's been demolishing those big houses and
replacing them with more smaller homes on the same site.

(04:32):
And the reason more and more people only need one
bedroom is because, you know, we don't have so many
large families anymore. Society is way different from back in
the day when Michael Joseph Savage turned up twelve fifth
Street in Miramar and Wellington in nineteen thirty seven to
open the very first state house. So things are different.
I get all that, but here's the nervous bit. If

(04:55):
you're not nervous yet, you should be. When we get
the Housing Minister talking about granny flats and state houses
in the same breath like we did this morning, like
you just heard, that's when you have to get nervous,
especially when you join the dots between that clip there
and the minister's announcement yesterday where he said quite ministers

(05:17):
are clear that caying orders should be building or acquiring simple, functional,
warm and dry houses as quickly and efficiently as possible
end of quote, which for me is code for a
whole bunch of one bedroom granny flat spelt in the rip,
shit and bust fashion. And that's why we should be
very nervous.

Speaker 1 (05:39):
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