Housing Minister Phil Twyford has admitted his KiwiBuild housing scheme is not nearly as popular as he or the Prime Minister have claimed it is, National’s Housing spokesperson Judith Collins says.
“According to the Ministry of Housing and Urban Development, contracts for 3,375 houses have been signed between KiwiBuild and a developer. But Mr Twyford has been forced to admit there are only 388 pre-qualified KiwiBuild applicants, having gone through the process required to buying a KiwiBuild home.
“The demand for KiwiBuild homes is so low that already a ballot has had to be extended.
“The Government is delivering KiwiBuild homes largely by buying houses ‘off the plans’. The Minister has confirmed the potential risk to the Crown if houses aren’t sold is $4 billion in just the first three years.
“If Mr Twyford can’t sell the houses he has bought off the plans the Government will be forced to pay this money. This will easily blow his $2 billion budget and cause the whole scheme to come crashing down.
“With this kind of taxpayer money on the line, New Zealanders want to know what independent valuations were done before he signed contracts to buy houses? What analysis of market demand was undertaken?
“The Minister has been clutching at straws to keep Labour’s flagship housing policy on life-support. In order to solve Mr Twyford’s problem of demand he has changed the terms of purchasing a KiwiBuild home.
“Instead of paying back the full profit if a buyer sold their home within five years, it’s now three years and only 30 per cent has to be paid back.
“Buyers can also purchase a home, fill it with tenants, keep the rent high and again, only pay 30 per cent of the rental income. There is no way KiwiBuild can monitor whether someone is living in their home or not. They can’t be peering through bedroom windows to check who’s living in the house.
“The whole scheme is complete shambles. Houses are too expensive and too small. The Minister isn’t building enough houses, he isn’t selling enough houses, and those few that are sold, aren’t going to the people that need them.
“KiwiBuild is a failed policy that was never properly thought through.”
Every New Zealander who has sought a resource consent has a tale of being bogged down in red tape, delays and soaring compliance costs and will be asking why David Parker wants to make it worse, National’s Planning (RMA Reform) spokesperson Judith Collins says.
“The Environment Minister has revealed his ambitions include turning the Resource Management Act into a vehicle for tackling climate change.
“Adding another consideration to the RMA will just mean one more reason to stop anything being built in New Zealand.
“The RMA already provides regional councils with powers to consider climate change for consents on renewable energy generation. Do we really want councils to be given broad new powers to block developments?
“Reducing global greenhouse gas emissions is a complex economic and scientific issue that won’t be well managed by regional councils. They simply don’t have the expertise, capacity or frankly the money to do it.
“New Zealand already has a mechanism for addressing New Zealand’s emissions. It’s called the Emissions Trading Scheme. We are also currently negotiating a bipartisan and independent Climate Change Commission
“This Government has crowed about its climate change credentials but its track record to date has been big on hot air and short on credibility, including its ban on offshore oil and gas exploration.
“I have committed to introducing new legislation next year to replace the RMA. New Zealand needs bold solutions to a law that has proven to be a planning nightmare. The last thing that we need is new layers of red tape.”
Auckland will suffer a transport heart attack if improvements aren’t made to the Mill Road corridor, MPs for Papakura and Hunua Judith Collins and Andrew Bayly say.
“The $1 billion Mill Road transport project is vital to meet the needs of the increasing population and business development in the Franklin area, and the pressing need to create additional capacity for the motorway network,” Ms Collins says.
“National had promised to turn the road into a major arterial transport route into Auckland. But the Government’s decision to slash road funding has put this long-signalled upgrade at risk.
“In order to fast-track this project, the previous National Government announced the Mill Road project as a state highway, removing the responsibility from Auckland Council.
“This would have provided funding certainty for this important project through the National Land Transport Fund and free up capital for Auckland Council to reinvest in other high priority transport projects.
“It also meant the Government could use the ‘fast-track’ provisions of the Resources Management Act to consent this entire motorway within nine months. Under the current arrangement, it will take years just to get the additional consent for the extension to the Southern Motorway.”
“Upgrading the Mill Road corridor project is fundamental to the growth of the South Auckland region. It will help improve road safety, support future growth areas and improve access to new employment opportunities in Drury South,” Mr Bayly says
“It would also provide an alternative north-south corridor in case of a major disruption or emergency on other southern arterial routes.
“The Government has instead stripped back the project, despite the upgrade promising resilience to the only part of the Auckland motorway that is vulnerable. It would have also facilitated the growth of a major industrial development and help address the south’s infrastructure deficit in terms of road access.
“Transport Minister Phil Twyford’s decision to reassess Mill Road adds up to a lack of certainty, further delays and additional costs. The longer the Government delays the worse the situation becomes for our constituents.”
The latest announcement that the ballot for KiwiBuild houses in Wanaka has had to be extended hammers home just how much Housing Minister Phil Twyford’s pet KiwiBuild scheme is struggling, National’s Housing spokesperson Judith Collins says.
“The extension of the ballot that opened early last month shows there hasn’t been the demand for a KiwiBuild home in Wanaka that Mr Twyford claimed there was. This is only the second ballot for homes and the scheme is already struggling.
“This has been a case of the Minister canvassing what projects were already in the pipeline that the Government could get to market quickly and announcing those to try and give the KiwiBuild scheme some credibility.
“Mr Twyford has completely missed the point of his own policy, which he says is to provide homes in places where demand is strong. The Minister was more enamoured with announcing a KiwiBuild development in the South Island than checking whether demand existed for properties with two or three-bedrooms in Wanaka at the price point he has set.
“This is another example of the Minister not listening to New Zealanders, and instead building completely the wrong types of houses.
“Coupled with the risk of fixing prices through a ballot where they either create lotto winners by selling below market price, or the Government is forced to underwrite houses they can’t sell, shows the policy hasn’t been thought through at all. The Minister has already been forced to admit that the potential risk to the Crown is $4 billion in just the first three years of the scheme.
“But it’s likely these costs will blow out as the Government struggles to sell studio apartments and two-bedroom houses in rural townships like the recent announcement of a KiwiBuild development at Te Kauwhata.
“The Government needs to scrap its housing policy. KiwiBuild is clearly a fiasco, it’s not delivering the types of homes first-home buyers want and they’re too expensive for the low to middle income families the Minister originally claimed it would help.
“The KiwiBuild policy is underwhelming and a disappointment to first-home buyers across the country. The Government needs to urgently review the entire scheme.”
The Minister for Regional Economic Development must stop meddling in the operations of Ports of Auckland and allow it to make commercial decisions free of political interference, National’s Infrastructure spokesperson Judith Collins says.
“Shane Jones says he is seeking advice on whether the Government can stop the council-owned company from building a multi-level waterfront car handling facility because NZ First wants to relocate port services to Marsden Point.
“This is reckless behaviour from a Minister. Businesses need to know they can operate independently in their best commercial interests without being caught up in political games.
“Businesses can’t be expected to wait for one of the Government’s 180 working groups to report before making investment decisions. The facility isn’t a surprise because it was included in the Port’s 30-Year Master Plan published a year ago.
“The Port’s statement of corporate intent shows its primary objective is to operate as a successful business at arm’s length from its council owner. The Government has even less claim. I doubt the Greens will be happy at the huge environmental impact if cars were to come into North Port.
“An NZIER report from September 2017 found that the costs of moving the vehicle processing facilities away from Auckland would outweigh the benefits by $1 billion, including the loss of up to 10,000 jobs.”
“This sort of interference is exactly why businesses have no trust in this Government and its economic management.”
Housing Minister Phil Twyford needs to urgently look into security issues with houses in the McLennan development and direct Housing New Zealand to replace all failing locking systems, National’s Housing spokesperson Judith Collins says.
“I have been contacted as the local MP about a failed locking system on state houses in the McLennan development, just along from the first of the KiwiBuild houses Mr Twyford and the Prime Minister opened last week.
“A Housing New Zealand tenant moved into their new home earlier this year, and has been burgled three times in the last two weeks, with the burglar breaking in with a screwdriver.
“The latest burglary has been defined by Police as aggravated burglary with intent to rape.
“The tenant has repeatedly asked Housing New Zealand to fix the locks so the tenant is able secure their home – currently the door can be unlocked using a screwdriver.
“But Housing New Zealand has failed to acknowledge the tenant’s fears for themselves and their family’s safety and not only hasn’t replaced the locking system, but also refused to compensate the tenant when they bought their own security system.
“This issue not only affects one tenant, but is likely to affect a large number of McLennan properties. It’s astonishing the Minister had no idea his state houses had such a security failure, and that Housing New Zealand is refusing to do anything about it.
“Mr Twyford has repeatedly boasted he is getting cheap deals for housing. But if it’s at the expense of tenants’ safety, it’s at a very high price.
“The Minister telling Parliament today that this is an operational matter doesn’t wash. The Minister must be satisfied that Housing New Zealand is looking after its tenants.
“Mr Twyford must ensure Housing New Zealand steps up, fixes the issue and acts like a good landlord.”
Housing Minister Phil Twyford’s admission KiwiBuild isn’t for low income families is further evidence of an ill thought out, untargeted lottery costing billions but not making a difference to the lives of those who need it most, National’s Housing spokesperson Judith Collins says.
“While National is committed to helping more New Zealanders into houses, government support should be targeted at those who need it most and it should come with an obligation on people to help themselves.
“KiwiBuild does neither.
“With billions of taxpayer dollars involved and significant personal benefit to lottery winners at the expense of taxpayers there should be stringent eligibility criteria. Applicants should at least have to show they have done what generations before them have done and made a demonstrable effort to buy a home, and people should be prioritised based on need.
“The Government now has real questions to answer about who wins here.
“It has created an expectation that hundreds of thousands of New Zealanders are going to get access to a Government provided home but that’s simply not going to happen.
“A year after it started there are only 70 houses under construction, most one or two-bedrooms, and their cost continues to climb beyond the reach of many.
“The Government’s own officials have estimated that a first home buyer household would need to be earning $114,000 a year to purchase a $500,000 KiwiBuild house, but the median household income is $25,000 less than this.
“Labour likes to argue they are offering housing support to Kiwis on a range of incomes, but in reality the only people who can actually access that support are those on a middle to high income.
“That’s why National’s plan was better. By increasing the overall supply of housing in general, first-home buyers on a low income could use the KiwiSaver HomeStart and Welcome Home Loan schemes to get a deposit together and more New Zealanders were getting ahead on their own steam with support from the Government.”
Potential KiwiBuild buyers will be rightly concerned that the Government is being unclear whether developments will be mixed KiwiBuild and State Housing National’s spokesperson for Housing Judith Collins says.
“Housing Minister Phil Twyford has promised his KiwiBuild scheme is the answer to New Zealand’s housing woes. But he has expressed concern to colleagues that there is a risk these houses won’t all be sold under KiwiBuild.
“The risk of unsold KiwiBuild houses is increasing as the Minister continues to announce developments with a majority of one-bedroom and studio apartments. However only 2 per cent of those who have registered for KiwiBuild have expressed an interest in a one-bedroom property.
“In the event that houses are not sold under KiwiBuild, the Minister has said they can be transferred to Housing New Zealand.
“This means when entering the ballot for a KiwiBuild property, buyers cannot be sure if the development will be include some houses that will be sold to Housing New Zealand.
“When the Minister removed the eviction for anti-social behaviour, I warned him that this would likely see KiwiBuild first-home buyers in developments with anti-social neighbours in Housing New Zealand rentals.
“Hard working Kiwis buying their own home should not be expected to have to put up with anti-social people living next door in taxpayer-funded housing, nor would they rightly want their small children growing up in such an environment.
“After handing over your life savings for the keys to your first home, it may be distressing for some young families to find out they share an apartment block with Housing New Zealand tenants.
“The Minister needs to step up and build KiwiBuild homes at the size the majority of prospective first-home buyers want and re-instate the eviction policy for anti-social behaviour by Housing New Zealand tenants so Kiwis aren’t hamstrung when wanting to sell their property to get the bigger house they needed in the first place.”
KiwiBuild is failing to deliver on its key objective to get Kiwi families into their first homes, National’s Housing spokesperson Judith Collins says.
“Housing Minister Phil Twyford has recently announced another KiwiBuild development where all of the houses are one or two-bedroom units.
“But 80 per cent of New Zealanders who have registered for KiwiBuild want a three or four bedroom home. A reasonable request considering most first home buyers have children, or are wanting to expand their family.
“A year into Government and Mr Twyford’s KiwiBuild scheme has only 70 houses under construction and 56 of those are two bedrooms or smaller.
“On top of this, earlier this year the Minister told his Cabinet colleagues that smaller houses were likely to be built to achieve the price points for the programme.
“Mr Twyford wasn’t confident in Parliament today when asked whether he would be able to build sufficient three-bedroom houses in Auckland for the $650,000 affordable price point, only saying his Government would do their very best to achieve that.
“Mr Twyford has repeatedly argued KiwiBuild will be a housing programme for all, with a mixture of homes suitable for ‘big families, small families, couples without kids, single parents with kids, people who live alone with their cat’.
“But he’s yet to deliver on that promise. So far in the Mt Albert development properties consist of nine studio apartments, six one-bedroom and three two-bedroom apartments.
“The Minister is so determined to build 1000 houses that he does not care how he gets there. He is simply building small homes that are only fit for one person and a cat.
“He needs to ensure that KiwiBuild is suitable for the Kiwi families he claims it will deliver for.”
The Government’s claim it is striking a balance between the interests of landlords and tenants has been further rubbished in Parliament today, National’s Housing spokesperson Judith Collins says.
“New Zealand landlords are set to lose out if the Labour-led Government goes ahead with its proposed changes to the Residential Tenancy Act.
“Under the proposed changes, landlords are limited to increasing rents once a year, they will need to give 90 days to terminate a tenancy under all circumstances, and the changes will end ‘no cause’ tenancies.
“National believes good tenants who pay their rent on time and take care of their property should have their leases protected, but these changes will make it impossible for a landlord to move out difficult tenants who trash their homes.
“Housing Minister Phil Twyford continues to miss the mark with his tenancy proposals, as he fails to look into unpaid rent.
“Persistent unpaid rent makes up about 72 per cent of total applications to the Tenancy Tribunal. But if the ‘no cause’ tenancy provision is removed landlords won’t be able to evict tenants who aren’t paying rent.
“Minister Twyford confirmed today the proposed changes will allow tenants to keep pets and make modifications. This would mean tenants would have free rein to modify their houses, including painting walls or adding as many shelves as tenants want.
“The discussion document comes on top of the prohibition of letting fees which is currently being pushed through Parliament, further restricting the rights of landlords.
“We know the changes will just drive more landlords out of the market, something we are seeing already. Trade Me has already confirmed the number of rentals on its site is down 3 per cent.
“We need to protect both landlord and tenant rights. But with these changes, it seems like tenants will be favoured well above the Mum and Dad landlords who have put their hard earned savings into an investment property.”