Archive

Posts Tagged ‘Gateway Scheme’

Housing; broken promises, families in cars, and ideological idiocy (Part Toru)

1 November 2014 11 comments

.

1949 state house in Taita

.

Continued from: Housing; broken promises, families in cars, and ideological idiocy (Part Rua)

.

Bill English comes clean on National’s intentions for HNZ privatisation

.

On 14 October, in a report on The Daily Blog, I wrote,

In his story, TV3’s Brooke Sabin raised the question,

“So a big cull of state houses is about to get underway, but the crucial question is: Will all that money make its way back into social housing or will some be pocketed by the Government? The official response is that hasn’t been worked out yet.”

Yes, it has, Mr Sabin.

The money will indeed be “pocketed by the government”.

For no other reason than their re-election in 2017 depends on it.

The TV3 story reported that up to 22,000 homes worth an estimated $5 billion could be sold off. This would make it one of the biggest asset sales in recent history – when John Key himself promised an end to state asset sales in February this year.

It is also a time when 5,563 are on Housing NZ’s ever-growing waiting list.

Three days later, on 17 October, Brook Sabin’s question was answered in full, and my prediction (once again) proved to be correct. A quote from our esteemed Deputy Prime Minister, Bill English,

‘No point’ in new state houses – Bill English

Finance Minister Bill English says the proceeds from selling state houses are unlikely to be spent on new state houses and may go into the Consolidated Account.

“I mean, if we want less stock, there’s not much point in rebuilding stock with it” …

Hat-tip: Anthony Robins

Whilst National “made noises” about some  Housing NZ properties being sold, or transferred to social organisations early in the year, there were no pre-election policy announcements  remotely resembling those made public by Bill English two weeks after the election. (See: National’s pre-election policy: 2014)

This was a radical, unannounced, policy that has taken the country by surprise.

In the Herald, columnist Dita De Boni was scathing in her condemnation of Key’s heretofore secret plan to sell  state houses,

Those conditions gave the Labour Government – elected in 1935 – a mandate to make the provision of state housing a top priority. Then Minister of Housing Walter Nash told New Zealand it could not prosper or progress with a population that “lack[s] the conditions necessary for a ‘home’ and ‘home life’, in the best and fullest meaning of those words”. It was a popular sentiment at the time, but look how far we have since regressed. We again have children and their parents living in cars and sheds. We have thousands of homeless; old diseases and ingrained misery have returned as sections of the population struggle to keep pace with the rising cost of living.

And at this critical juncture in our history, our Government is looking, instead, to offload state housing. It is the absolute, ultimate irony: a public welfare system that bridges the gap left by market failure, that, when starved, denigrated and under-resourced, as it is now, can only, apparently, be saved by the market.

[…]

The Government has tried to slip the sell-off of state housing under the radar: I guess they don’t want to be seen to be contradicting their pre-election promise not to sell any more state assets. They focus instead on “first home affordability” – a much more pressing concern for their supporters (as long as it does not affect their other supporters, who don’t want too much new housing to depress the capital value of their property).

[…]

It is hard to understand how reverting to the Victorian solution of seeing churches and social agencies haphazardly tackle this gaping social wound will work. They don’t have the resources, for one thing. They are also not plugged into the bigger picture – the social needs of the tenants, the transport and logistics needs of new housing and so forth, all things a clever, committed government can oversee. Not ours then, which is trying desperately to shift the immediate costs of social housing elsewhere, and the benefits to a crony cohort.

One method they’ve used is to seed the idea with the public that state housing is all let to gang members and chronic social misfits who trash their properties and refuse to move out. Of course, that does describe a percentage of state house tenants – or any tenants.

Call me old-fashioned, but I tend to think that housing is one of the core concerns of Government, and that the provision of state housing – as well as its proper management and upkeep – is fundamental. It is astonishing that a Prime Minister who grew up in a state house, and has gained huge political advantage from being able to trumpet that fact, can’t see why it is wrong to pull up the ladder after him.

I encourage the reader to read Ms De Boni’s full piece. It is a savage indictment of John Key’s miserable agenda to get the State out of social housing.

New Zealanders should be under no illusion:  housing in this country is about to get a whole lot worse before it improves. We can expect to see more over-crowding;  entire families living in cars, under bridges;  the rise of  the first squatter camps since the Great Depression; more poverty; and more spreading disease.

Bill English has made it abundantly clear: this government will be selling state houses. It will not be “rebuilding stock” (houses).

This may not be what New Zealanders voted for on 20 September – but did 1,131,501 voters who ticked the box for National expect better?

.


.

References – Part 3

TV3 News: State housing sell-off worth $5B

Radio NZ: PM rules out more asset sales

Fairfax media: Housing NZ waiting lists swamped

NZ Herald: ‘No point’ in new state houses – Bill English

NZ Herald: State housing shake-up: Lease up on idea of ‘house for life’

NZ Herald: Dita De Boni – State house poster boy callous to pull up ladder

Wikipedia: New Zealand general election, 2014

Previous related blogposts

Can we do it? Bloody oath we can!

Budget 2013: State Housing and the War on Poor

Budget 2013: State Housing and the War on Poor

National recycles Housing Policy and produces good manure!

Our growing housing problem

National Housing propaganda – McGehan Close Revisited

Housing; broken promises, families in cars, and ideological idiocy (Part Tahi)

Housing; broken promises, families in cars, and ideological idiocy (Part Rua)

Other blogs

The Jackal: More homelessness under National (30 July 2012)

The Standard: Unaffordable housing & the culture of greed

No Right Turn:  A surprise policy

Social Groups

Facebook: Affordable Housing For All

Facebook: Housing NZ Tenants Forum

Facebook: Tamaki Housing Group- Defend Glen Innes


.

Irony of ironies, a National Party 1938 election poster

Irony of ironies, a National Party 1938 election poster

.

This blogpost was first published on The Daily Blog on 28 October 2014

.

.

= fs =

Advertisements

Housing; broken promises, families in cars, and ideological idiocy (Part Rua)

18 October 2014 17 comments

.

1949 state house in Taita

.

Continued from: Housing; broken promises, families in cars, and ideological idiocy (Part Tahi)

.

National’s housing development project: ‘Gateway’ to confusion

.

Perhaps nothing better illustrates National’s lack of a coherent housing programme than the ‘circus’ that is their “Gateway” policy. The history of this project has to be seen to be believed. As I reported in November 2012;

October 2010: Gateway Project ON!

On 10 August 2010,  the resignation of  former Labour Pacific Island Affairs Minister, Winnie Laban,  triggered a by-election in the Mana electorate. National stood Hekia Parata, a List MP, as their candidate.

As part of National’s campaign to win Mana from Labour, Housing Minister Phil Heatley announced a new housing programme called the “Gateway Housing Assistance“. According to their press release,

Housing Minister Phil Heatley has today launched a new programme which will make it easier for first-time buyers and those on lower incomes to build or purchase their own homes.

Gateway Housing Assistance allows purchasers to build or buy a property but defer payment on the land.

“It is important the Government provides opportunities for people to move into home ownership. Affordable homes schemes such as Gateway is another way we can assist more people into a home of their own,” says Mr Heatley.

“Under Gateway full and final payment for the land can be deferred for up to ten years. This ten year period allows people on lower incomes to concentrate on designing and building, or buying, their homes before they assume the additional burden of paying for the land,” says Mr Heatley.”

It was an election stunt, of course. Much like National’s “sudden interest” in upgrading State housing in the Porirua area.

Three months, the by-election was won by  Kris Faafoi.

May 2012: Gateway Project OFF!

Having lost the 2010 Mana by-election, and as National scrambled to cut  state services; close schools; and scrap any  projects it could get away with (avoiding any public backlash in the process)  the “Gateway Housing Assistanceprogramme became a casualty,

John Key has defended a decision to cancel sales of affordable housing in an Auckland development, saying low interest rates are making it easier for first-time buyers and people on low incomes to afford their own homes.

The Hobsonville Point development, started in 2009, allocated up to 100 of 3000 houses under the Gateway scheme, a helping hand for lower-income first-home buyers who could not afford to buy in Auckland.

[…]

The Prime Minister defended the decision not to include more of the Hobsonville development in the Gateway scheme.

“The Government has looked at that programme and decided that’s now not the most effective way of going forward”.”

Key added,

He said one of the positive stories at the moment was that mortgage rates had fallen.

“So we think the capacity for lower income New Zealanders to own their own home is greatly enhanced by the fact interest rates are lower.

“If you have a look at the average home owner in New Zealand, they are paying about $200 a week less in interest than they were under the previous Labour Government”.”

November 2012: Gateway Project ON (again)!

On 18 November, Labour Leader David Shearer delivered a speech to  his Party conference, promising to implement a mass-construction project to build 100,000 homes for desperate families.

Having gotten ‘wind’ of Shearer’s plans for “Kiwi Build”, National scrambled to dust off it’s Gateway Project, three days before the Labour leader’s speech,

The Government has reinstated plans to allocate a percentage of the houses at Hobsonville Point in Auckland as affordable homes priced under $485,000.”

Then Housing Minister, Phil Heatley, was keen to reassure the voting public that National would “do it’s bit” to help Kiwi “mums and dads” into their own homes – something that has become a distant dream during National’s term.

Even pro-National columnist, John Armstrong, was less than  impressed at the time,

“…when it comes to increasing the housing stock, there is not a lot central government can do unless it is willing to spend big bikkies.”

As was widely reported at the time, the so-called “Gateway Project” was less than a stirling success;

“In 2009, 100 of the 3000 homes at the development were tagged as affordable under the Gateway scheme, giving lower-income first-home buyers a helping hand.

Only 17 were sold, 14 for less that $400,000.”

As I pointed out two years ago – and not much seems to have changed in the interim under this government –

One aspect to Housing Minister Heatley’s press release (Hobsonville Point a boost for Auckland housing) that is painfully evident, is National’s luke-warm approach to the housing problem in this country.  Having read it, one cannot avoid the conclusion that their heart simply isn’t in it, and each word in their press release must have felt like pulling teeth.

Just by comparing the two releases of housing policies, one could easily gauge which Party was more enthusiatic;

National: a press release

Labour: a major policy speech,  given by the Leader of the Labour Party, at the Party annual conference, and released via television, internet, newspapers, etc.

National was not interested in assisting New Zealanders into their own homes. In this instance, National was more interested in trying to up-stage and undermine Labour’s release of  a major policy initiative.

October 2014: Gateway Project –  Status Unknown

As at this point, the status of Housing NZ’s ‘Gate Way‘ assistance project is uncertain, with a previous page on Housing NZ’s website now apparently a dead-link;

.

Housing  NZ - Gateway assistance project - webpage

 

.

“We’re sorry, but that page doesn’t exist” – is appropriate. The Gateway Project – after only seventeen homes sold under the scheme – seems to have been quietly canned. But as John Armstrong pointed out in 2012, the purpose of National’s quasi-housing “scheme” was not to build new homes for struggling New Zealanders;

“… the Government has finally steered political debate on to something it wishes to talk about, rather than being hostage to what Opposition parties would prefer to debate.”

High rents; growing unaffordability; a shortage of social housing; and growing homelessness – all impacted on our notion of having a decent roof over one’s head. News that,

“…more than half of New Zealand’s homeless were under 25, and a quarter were children. Most lived temporarily with friends or family, squeezed into living-rooms or garages, rather than on the streets.”

– was not what New Zealanders wanted to hear. Not in a nation that once prided itself on high rate of home ownership and the “quarter acre pavlova paradise” was deeply ingrained in the Kiwi psyche. That Paradise was fast disappearing, according to Richard Long, writing in the Dominion Post in 2012,

“So much for our quarter-acre pavlova paradise. The Government belatedly has come to the conclusion that something needs to be done about the failure of the housing market to provide the necessary land; and for resources, somehow, to be directed to providing low-cost housing instead of the present concentration on the expensive stuff.

All this is hardly new. I recall Helen Clark, when prime minister, lecturing me at a Wellington Cup meeting more than a decade ago about the need for land to be made available – at a reasonable price – to address the crisis. She surmised then that speculators were holding on to the land to gain higher returns. And she fingered, quite prophetically, the absurdity of house construction costing 30 per cent more in New Zealand than in Australia.

As the 2014 Election rolled closer, housing once again became a major election-issue. As Long wrote,

Now the Nats are going to have a go at solving the problem, with Finance Minister Bill English basically admitting the market system has failed.”

.

Key’s promise – 25 February

.

The sell-down of Air New Zealand, Genesis Energy, Mighty River Power, and Meridian raised approximately  $4.67 billion. This was a far cry from earlier expectations of   between $5 billion and $7 billion – and way below Key’s initial, wildly-optimistic forecast of $7 billion to $10 billion in January 2011,

“If we could do that with those five entities … if we can make some savings in terms of what were looking at in the budget and maybe a little on the upside you’re talking about somewhere in the order of $7 to $10 billion less borrowing that the Government could undertake.”

On 25 February 2014, Key announced an end to National’s asset sales programme,

“The truth is that there aren’t a lot of other assets that would fit in the category where they would be either appealing to take to the market or of a size that would warrant a further programme. Or they sit in the category where they are very large, like Transpower, but are a monopoly asset and so aren’t suited I think.”

He explained,

“Just as we did before the last election we’re making our position on share sales clear to New Zealanders before we go to the polls later this year.

We’ve achieved what we wanted with the share offers in energy companies and Air NZ. We’re now returning to a business-as-usual approach when it comes to [state-owned enterprises].”

Why was Key making such a clear promise to the electorate?

An earlier Roy Morgan Poll on 22 January 2014 – one month before Key announced a cessation of asset sales – would have sent National’s back-room strategists into a screaming tail-spin;

National: 43.5%

Labour: 33.5%

Greens: 12.5%

Those were heady days for National’s opponents, and a change in government seemed inevitable.

By committing National to an end to asset sales, Key was being strategic. He knew state asset sales were deeply unpopular with the public, and National did not want to risk giving opposition parties any further ammunition during what was then considered to be an up-coming, closely-fought election.

The polls (at the time) had forced National’s hand to acquiesce to public pressure. It would prove to be a pre-election promise they would regret later.

National made its panic-driven decision to abandon further asset sales at the same time that Fonterra announced at the end of February this year that it would be boosting it’s payout to dairy farmers,

Fonterra’s 35 cent lift in its milk price for the 2013-14 season to $8.65/kg milk solids means an extra half a billion in revenue for New Zealand.

The new forecast is a record payout from the co-operative and with the 10 cent kg/MS dividend on top, meant potential cash in hand for a fully shared up Fonterra farmer-shareholder of $8.75 kg/MS.

Federated Farmers’ dairy chairperson, Willy Leferink, was ebullient,

”In 2010, the NZIER said a $1 kg/MS rise in Fonterra’s payout makes every New Zealander nearly $300 better off.  Given this latest 35 cent kg/MS uplift, every New Zealander could be $100 better off as a result of what we do.”

It was also no doubt something that National was casting a keen eye over, as an increased Fonterra payout meant more tax revenue. National was ‘banking’ on high dairy prices to get it back to surplus by next year, 2015.

It would be a slim surplus of $372 million.

By 24 September, Fonterra had slashed it’s forecast payout down to $5.30/kg.

Prime Minister John Key was candid in the implications for the economy and the  government’s tax-take;

“It can have some impact because if that’s the final payout, the impact would be as large as NZ$5 billion for the economy overall, and you would expect that to flow through to the tax revenue, both for the 14/15 year and the 15/16 year. My understanding is Treasury is working on those numbers for the incoming Minister of Finance, which fortunately is the same as the outgoing Minister of Finance as well.

They are giving him (English) a bit of an assessment of what impact that might have. There’s a lot of different factors that go into that surplus. We expect it to have some impact and it’s a very narrow surplus. That doesn’t mean that we won’t achieve surplus. It means the Government will have to think through all of the issues here. There may be other options we choose to take.”

Bill English was already working on those “other options“. He needed to find $5 billion dollars to fill a hole left by collapsing international dairy prices.

.

National’s pre-election policy: 2014

.

National’s housing policies for the 20 September  election were ‘divvied’ up between first home buyers and ‘social’ housing. Note that throughout National’s policy document, they refer to “social housing” and “state housing” is referred to as “state houses”  only in terms of properties, not as a policy term.

For first home buyers, National was prepared to allow Kiwisaver investors to effectively ‘raid’ their savings and use the funds for a deposit for a house purchase. Aside from further pushing up the price of a limited availability of properties, this is hardly what Dr Michael Cullen had in mind when he set up Kiwisaver in July 2007. Saving for home ownership and saving for retirement are not necessarily the same thing.

On 24 August 2014, Key stated in a speech,

“The policy will help tens of thousands more first home buyers achieve their dream of home ownership. It will get young families started building what for most will be their biggest asset.

National backs young Kiwis who are disciplined, save up and want to put a deposit down on a house.  National values home ownership.  That’s because it provides stability for families, strength for communities and security in retirement.”

However, not all New Zealanders  are fortunate enough to be in high-paying jobs where they can afford to “save up and want to put a deposit down on a house” – and pay high rent whilst doing so in rented accomodation.

Whether the houses are actually there to buy is also a moot point.

To date, this country has been woefully short of supplying new, mid-priced homes, to meet demand. Instead, ” the majority of new homes today are upmarket affairs“, as Rebecca Macfie reported for ‘The Listener‘ in July 2012.

The problem, simply, is insufficient supply to meet demand – especially of affordable properties. According to National’s policy, they need to find “ 90,000 lower and middle income first home buyers into their own home over the next five years” – a policy sounding remarkably similar to Labour’s 100,000 new homes over a space of ten years.

National’s social housing policy was more vague, with passing reference only to social housing providers other than Housing NZ;

What we will do next…

Continue helping those in most need

Support a growing role for community housing providers in delivering social housing through the social housing fund and Housing New Zealand.

In case the page mysteriously disappears (as have other National Party policy releases), the relevent section of the  Social Housing page   is posted here;

.

National Party - 2014 election - social housing policy - Housing NZ

.

There was  no mention of things to come once the election was over. Certainly no mention of a mass housing sell-off,  which could also be described as  a partial asset-sale of Housing NZ.

.

English Blames Everyone Else

.

On 7 October, as the National government faced increasing pressure over New Zealand’s growing economic and housing problems, Finance Minister Bill English made this bizarre accusation against local bodies;

“The growth in housing costs over time, to the point where you’re seeing families spending 50 or 60 percent of their income on housing – that’s pretty devastating at the low end.

So councils need to understand that when they run these policies that restrict the availability of land and the opportunity for lower value housing they are causing poverty.”

It was an accusation that startled city leaders from one end of the country to the other, from Auckland to Christchurch.

Green co-leader Metiria Turei was speaking for hundreds of local body elected leaders when she quite rightly pointed out,

“Nowhere in any report from any non-government organisation or Government department has urban planning been blamed for child poverty.

What I think is happening is Bill English is trying to divert attention from the fact that the solutions are obvious and within the power of the Government to implement, but they don’t want to.”

Interestingly, as reported in the same Radio NZ story,

ANZ chief economist Cameron Bagrie said restrictions around the availability of land had affected housing affordability but it wasn’t the only factor to blame for poverty.

He said there were a lot of other challenges behind the scenes, and there was no one-size-fits-all solution to make houses more affordable.

Mr Bagrie said housing unaffordability was possibly due to wages being too low.

In essence, if workers’ remuneration is too low, they cannot purchase the consumer goods and services their society produces.

English, though, was not blaming Councils simply because he was having on “off day”. His diatribe was part of a carefully-calculated agenda, and National’s attack on Local Bodies was  part of a slowly unfolding plan.

He was looking for $5 billion, and there was precious little loose change behind the sofa cushions in the Beehive. Also, as Key had promised on 25 February 2014, National’s asset sales programme had been completed, and there would be no further full-scale privatisation of SOEs.

.

Key’s promise – 6 October

.

On 6 October, both Key and English made public statements that, on the face of things, seemed to be at variance with each other.

Key said that the government would not “you know, go crazy” selling Housing New Zealand homes

Yet, at the same time, he made clear what his interest in Housing NZ was;

“Housing’s a big issue, I think, for the Government; it’s a big issue for New Zealand and there’s specific parts to that.

So what we’ve done there is to have Bill English as the Minister of Finance responsible for what is a very big asset now in the Government’s balance sheet: Housing New Zealand. About NZ$15 billion worth of assets there.”

Now, in theory, with the income related rents there is a cash flow there that should allow them to actually go and build their housing stock. That is at way too slow a rate than what the government would like to see. So if you think NZ$15.5 billion sitting there for Housing New Zealand and NZ$100 million sitting in social housing, that mix is wrong and I think there is a real opportunity here to potentially change that dynamic and I want to see a lot more work done in that area.”

Part of National’s new agenda was Key’s intention to create a ministerial team compromising of Bill English, Paula Bennett and Nick Smith. The three ministers “would work together on housing issues”.  But the crucial, critical appointment was Bill English, who would take responsibility for Housing New Zealand.

Bill English; Finance Minister and now also Minister Responsible for HNZC (Housing New Zealand Corporation)?  What was the connection between the two portfolios?

As well as eying up the multi-billion asset that is Housing NZ and the additional millions in cash-flow, Key padded his speech with a litany of alleged “faults” with the Corporation;

  • too slow “ to actually go and build their housing stock”
  • “the mix is wrong”
  • the asset is often in the wrong place
  • governments of “successive persuasions have struggled with”  State housing flexibility
  • there was too much ” capital tied up in Housing New Zealand stock
  • they are not always terribly flexible
  • the previous government completely ignored the upkeep of those homes

The implications from repeated rhetoric is clear; Housing NZ has allegedly “mis-managed” their stock, and the State “struggles” with being a suitable landlord.

In his speech, Key failed to mention that National (and previous governments) have been using Housing NZ as a “cash cow”, demanding huge cash dividends from the corporation. As Nick Smith admitted in Parliament on 8 May,

“The average dividend under the 5 years so far of this Government has been $88 million. The dividend this year is $90 million.”

Sucking an average $88 million per year from Housing NZ – a government body charged with assisting the poorest people in our communities – was bound to have negative consequences. Key’s “litany of faults” was wholly predictable – a result of government self-interest to balance their books, at the expense of Housing NZ tenants.

It is not the first time National has used a SOE as a cash cow – or perhaps more akin to a lethal parasitic organism – to the  SOE’s eventual detriment (see: Solid Energy – A solid drama of facts, fibs, and fall-guys).

At any rate, Key’s 6 October speech was laying the groundwork for National’s new State housing policy – which Bill English was making public the very same day. After all, as Tom Scott so astutely pointed out in 2012, Key was renowned as “the Great Salesman” for good reason;

.

Chairman Key - The Dear Leader

.

Who better to “pitch the deal” to the public, than the most trusted, popular, apolitical  Prime Minister since perhaps David Lange?

.

Real Reason for sell-off?

.

Meanwhile, Bill English was outlining National’s true agenda, whilst Key was putting on his benign face to the New Zealand public.  As TV3’s Brook Sabin reported,

“A big state-house sell-off is on the way, and up to $5 billion-worth of homes could be put on the block.

The shake-up of the Government’s housing stock will be a key focus for the next three years, with Finance Minister Bill English to lead it.

On the block is everything from a tiny 75 square metre two-bedroom state house in Auckland’s Remuera, on the market for $740,000, to a three-bedroom home in Taumarunui for just $38,000. Thousands more properties will soon hit the market.”

The reason for putting up to  $5 billion-worth of homes  on the block?

Crashing dairy prices had left a gaping hole in the National Government’s books, and their much-vaunted Budget surplus next year was under threat. Remember that  Key was candid in the implications for the economy and the  government’s tax-take; when he stated – also on 6 October;

“It can have some impact because if that’s the final payout, the impact would be as large as NZ$5 billion for the economy overall, and you would expect that to flow through to the tax revenue, both for the 14/15 year and the 15/16 year. My understanding is Treasury is working on those numbers for the incoming Minister of Finance, which fortunately is the same as the outgoing Minister of Finance as well.

A day later, on 7 October, Fairfax’s Vernon Small reported on English reiterating the government’s parlous fiscal position;

The Government has posted a Budget deficit of $2.9 billion in the year to June 30, $338m worse than forecast in the pre-election opening of the books.

Finance Minister Bill English said the result was the third consecutive narrowing of the deficit before gains and losses (Obegal) and was further evidence careful fiscal management was producing consistent gains over time.

However it compared with the forecast deficit of $2b in the 2013 Budget.

The major changes since the pre-election picture were a decline in tax revenue, an increase in treaty settlement costs and an increase in earthquake rebuild expenses.

[…]

English said the economy faced some headwinds, including lower dairy prices, uncertain tax revenue, global risks in China and Europe and the impact of the Auckland housing market.

It was therefore rank hypocrisy when English justified the massive sell-of of state housing by linking it to impoverished families’ needs,

“There will be state house sales because we need to move a lot faster if we’re going to provide enough houses for low-income families,” says Mr English.

English’s planned $5 billion sale of State houses is a panic-driven measure by the National Government to plug the gap left by falling dairy prices and concomitant falling taxation revenue.

National’s re-election on 20 September was predicated on it’s undeserved reputation for being a “prudent fiscal manager” of the country’s economy. It was not just their surplus that was at risk – it was their carefully cultivated public perception at being better at managing the economy than Labour.

If National could not deliver a surplus – as it had promised – what good was it as a fiscal steward? It would prove to be a major mill-stone around their neck for the 2017 election.

In the meantime;

Housing New Zealand figures show that at the end of March 5563 people were on the waiting list, compared with 4495 at the same time last year and 4637 the year before.

Our poorest schools are swapping nearly half their pupils a year, as transient families chase work or flee debt.

Some schools say they have taught 7-year-olds who have been through eight schools in their first two years.

Many transient children also have learning difficulties but are often uprooted before schools can bring in extra support.

A decile 1 school will, on average, have twice the student “churn” of a decile 10 school, according to Ministry of Education figures. During the 2013 school year, a typical school in a highly deprived area would have lost and gained the equivalent of nearly half its roll.

A decile 10 school typically has a much more stable roll, with about a quarter coming or going last year. This does not include pupils starting or finishing their schooling.

The transience was even worse in primary schools, hitting children at a time when experts say moving schools is the most harmful.

The figures, released under the Official Information Act, show Russell School, a decile 1 primary in Porirua, had the highest level of pupil turnover in the Wellington region two years ago.

Principal Sose Annandale said a Housing New Zealand shake-up was probably partly responsible for the high turnover that year, but transient families continued to be a big problem.

[…]

The higher level of transience in low-decile schools was not surprising, as deprived families were more likely to move for housing or work.

“Many of these transient families do not have a fixed abode. They are just staying with whanau for a while, until they have to move on again.

As  the Salvation Army’s  Major Campbell Roberts, stated with matter-of-fact bluntness;

“We, at the present in New Zealand, don’t have enough social housing, so to reduce that number further would be a major problem. What there needs to be is an increase in the numbers of social houses.”

In his story, TV3’s Brooke Sabin raised the question,

“So a big cull of state houses is about to get underway, but the crucial question is: Will all that money make its way back into social housing or will some be pocketed by the Government? The official response is that hasn’t been worked out yet.”

Yes, it has, Mr Sabin.

The money will indeed be “pocketed by the government”.

For no other reason than their re-election in 2017 depends on it.

 

.


 

.

References – Part 2

Scoop media: Gateway to improve housing affordability

Hekia Parata: State housing improved in Porirua

NZ Herald:  Key backs cut-off for cheap homes plan

Labour Party: Speech – New Zealand – A new direction

NZ Herald:  Quota reintroduced for Hobsonville housing development

NZ Herald: John Armstrong – National’s affordable housing package lacks any substantial detail

Housing NZ: Gateway Project

Dominion Post: Richard Long – So much for our quarter-acre paradise

Radio NZ: PM rules out more asset sales

NZ Herald: PM – no more SOEs to sell after Genesis

Fairfax Media: Labour spits over National’s asset sale figures

Fairfax Media: John Key reveals plan for asset sales

Roy Morgan: Poll – January 22 2014

National: Helping first home buyers

National: National to help 90,000 first home buyers

The Listener: Why it’s more expensive to build in NZ than in Australia

Otago Daily Times: Labour – 100,000 more affordable homes

National: Social housing

Radio NZ: Councils reject blame for poverty

Fairfax Media: Fonterra forecast worth an extra $500m to NZ

NBR: BUDGET 2014 – Government surplus meets global rating agency expectations

Interest.co.nz:  Fonterra cuts milk payout forecast for 2014/15 to NZ$5.30/kg

Hive News: Treasury re-crunching Budget numbers for low Fonterra payout

Interest.co.nz:  Key signals big shift towards community-provided social housing from pure state housing in creating ‘super group’ of housing ministers

Radio NZ: John Key reveals new Cabinet lineup

Parliament: Hansards – Housing, Affordable—Progress and Management of Housing New Zealand

TV3 News: State housing sell-off worth $5B

Fairfax Media: Government deficit widens

Fairfax Media: Housing NZ waiting lists swamped

Radio NZ: Govt pushes on with state house sales

Dominion Post: Kids dragged from school to school (See also: Housing policy will destabilise life for children)

Additional references

Dominion Post: Housing policy will destabilise life for children

Fairfax media: Over-crowded house blamed for baby’s death

TVNZ News: Thousands of Kiwi kids homeless

Previous related blogposts

Review: TV3′s The Nation – “Let them eat ice cream!”

Previous related blogposts

Can we do it? Bloody oath we can!

Budget 2013: State Housing and the War on Poor

Budget 2013: State Housing and the War on Poor

National recycles Housing Policy and produces good manure!

Our growing housing problem

National Housing propaganda – McGehan Close Revisited

Solid Energy – A solid drama of facts, fibs, and fall-guys

Social Groups

Facebook: Affordable Housing For All

Facebook: Housing NZ Tenants Forum

Facebook: Tamaki Housing Group- Defend Glen Innes

Other blogs

The Jackal: More homelessness under National (30 July 2012)

The Standard: Unaffordable housing & the culture of greed

No Right Turn:  A surprise policy


 

.

1623616_704918519553325_1013129092_n

This blogpost was first published on The Daily Blog on 14 October 2014

.

.

= fs =

 

 

 

 

 

National recycles Housing Policy and produces good manure!

19 November 2012 3 comments

.

.

Prologue…

On 10 August 2010,  the resignation of  former Labour Pacific Island Affairs Minister, Winnie Laban,  triggered a by-election in the Mana electorate.

The by-election was contested by almost every  party on the New Zealand political spectrum; Alliance,  Aotearoa Legalise Cannabis,  ACT,    Labour, Libertarianz,  Green Party,   Matt McCarten  (Independent), and the National Party. Only NZ First and United Future did not stand candidates.

The by-election was bitterly fought between Labour and National and was seen by many as a de facto “vote of confidence” in the current National-led coalition government.

National stood Hekia Parata, a List MP, as their candidate.  (She had also previous stood in the Mana electorate in the 2008 general election.)

October 2010: Gateway Project ON!

As part of National’s campaign to win Mana from Labour, Housing Minister Phil Heatley announced a new housing programme called the “Gateway Housing Assistance“. According to their press release,

Housing Minister Phil Heatley has today launched a new programme which will make it easier for first-time buyers and those on lower incomes to build or purchase their own homes.

Gateway Housing Assistance allows purchasers to build or buy a property but defer payment on the land.

“It is important the Government provides opportunities for people to move into home ownership. Affordable homes schemes such as Gateway is another way we can assist more people into a home of their own,” says Mr Heatley.

“Under Gateway full and final payment for the land can be deferred for up to ten years. This ten year period allows people on lower incomes to concentrate on designing and building, or buying, their homes before they assume the additional burden of paying for the land,” says Mr Heatley.

[…]

“Gateway will be yet another tool in the affordable housing tool-box. The Government already supports housing affordability through a number of other measures including Kiwisaver First Home Deposit Subsidy and the First Home Withdrawal, Welcome Home Loans, the Housing Innovation Fund and the Tenant Home Ownership Programme.

“We have also cut unnecessary bureaucracy and red tape to streamline building processes, which reduces the cost of building for everyone,” says Mr Heatley. “

See: Gateway to improve housing affordability

It was an election stunt, of course. Much like National’s “sudden interest” in upgrading State housing in the Porirua area,

National Party by-election candidate and Mana-based List MP Hekia Parata has welcomed the Government’s commitment to better maintaining state houses.

“It was great to get Housing Minister Phil Heatley out to Cannons Creek to see how the Government’s commitment to catching up on maintenance is making a difference. But it’s also been a good opportunity to reinforce with him that there’s been a long period of neglect.”

She’s commenting after visiting the Cannons Creek renewal project in Hampshire and Flora Streets today, and accompanying the Minister to the Government’s new Gateway Housing initiative, which was also launched in Porirua.

“The Minister revealed that beginning today, a further 360 upgrades will be carried out on state houses in Porirua City during the 2010/2011 financial year. That’s on top of the 275 houses that have received upgrades in the 2009/10 year.”

See: State housing improved in Porirua

The by-election was won by  Kris Faafoi, three months later on  20 November.

May 2012: Gateway Project OFF!

Having lost the Mana by-election, and as National scrambled to cut  state services; close schools; and scrap any  projects it could get away with (avoiding any public backlash in the process)  the “Gateway Housing Assistance” programme became a casualty,

John Key has defended a decision to cancel sales of affordable housing in an Auckland development, saying low interest rates are making it easier for first-time buyers and people on low incomes to afford their own homes.

The Hobsonville Point development, started in 2009, allocated up to 100 of 3000 houses under the Gateway scheme, a helping hand for lower-income first-home buyers who could not afford to buy in Auckland.

[…]

The Prime Minister defended the decision not to include more of the Hobsonville development in the Gateway scheme.

“The Government has looked at that programme and decided that’s now not the most effective way of going forward”.”

Key added,

He said one of the positive stories at the moment was that mortgage rates had fallen.

“So we think the capacity for lower income New Zealanders to own their own home is greatly enhanced by the fact interest rates are lower.

“If you have a look at the average home owner in New Zealand, they are paying about $200 a week less in interest than they were under the previous Labour Government”.”

See: Key backs cut-off for cheap homes plan

It’s a shame that  Dear Leader spends so much time swanning around the golf courses on  Planet Key, that he obviously hasn’t heard of the critical housing shortages in Auckland and around the rest of the country; the astronomical prices for Auckland properties; nor the shortage of rentals.

On 19 November, Labour Leader David Shearer delivered a speech to  his Party conference, promising to implement a mass-construction project to build 100,000 homes for desperate families.

November 2012: Gateway Project ON (again)!

Having gotten ‘wind’ of Shearer’s plans for “Kiwi Build”, National scrambled to dust off it’s Gateway Project, three days before the Labour leader’s speech,

The Government has reinstated plans to allocate a percentage of the houses at Hobsonville Point in Auckland as affordable homes priced under $485,000.

In 2009, 100 of the 3000 homes at the development were tagged as affordable under the Gateway scheme, giving lower-income first-home buyers a helping hand.

Only 17 were sold, 14 for less that $400,000.”

See: Quota reintroduced for Hobsonville housing development

Heatley was keen to reassure the voting public that National would “do it’s bit” to help Kiwi “mums and dads” into their own homes – something that has become a distant dream during National’s term. Heatley stated,

This initiative will both add to Auckland’s housing supply, and demonstrate innovative commercial market-based solutions that could be replicated in the affordable housing market elsewhere in New Zealand.

Twenty per cent of the 2500-3000 new homes at Hobsonville Point will be priced at $485,000 or less. This means 500 to 600 more affordable homes will be built in this Auckland development alone.

The Hobsonville Land Company, a subsidiary of Housing New Zealand, will introduce a simple scheme to prioritise home-ownership access to some of the houses.”

All very plausible-sounding, though he was quick to allay any possible impression  of “nanny statism” or “socialist” interference in the Holy Grail of the Free Market by adding,

This initiative will both add to Auckland’s housing supply, and demonstrate innovative commercial market-based solutions that could be replicated in the affordable housing market elsewhere in New Zealand.

[…]

To protect taxpayers, the project’s lifespan will be determined by market conditions and the need to achieve a reasonable rate of return on the taxpayer’s investment.”

See: Hobsonville Point a boost for Auckland housing

One aspect to Housing Minister Heatley’s press release (Hobsonville Point a boost for Auckland housing) that is painfully evident is National’s luke-warm approach to the housing problem in this country.  Having read it, one cannot avoid the conclusion that their heart simply isn’t in it, and each word in their press release must have felt like pulling teeth.

Just by comparing the two releases of housing policies, one could easily gauge which Party was more enthusiatic;

National: a press release

Labour: a major policy speech,  given by the Leader of the Labour Party, at the Party annual conference, and released via television, internet, newspapers, etc.

National is not interested in assisting New Zealanders into their own homes. In this instance, National was more interested in trying to up-stage and undermine Labour’s release of  a major policy initiative.

It is apalling that National can play childish games with critical problems such as housing. This is naked politicking – at our expense.

Epilogue

National’s on-off-on-again approach to housing gives Flip-Flopping a whole new meaning.

Personally speaking, this blogger gives the Gateway Project another six to twelve months – and then it will be scrapped again.

It will then be resurrected during the 2014 (or earlier) election.

Are we having fun yet?

.

.

*

.

Previous related blogposts

Can we do it? Bloody oath we can!

National prescribes bad medicine for the poor

Frankly speaking on Budget 2012

David Shearer: New Zealand – A new direction

Other Sources

Scoop: Gateway to improve housing affordability (11 Oct 2010)

National Party: State housing improved in Porirua (11 Oct 2010)

TVNZ: Loans for housing on crown land (11 Oct 2010)

NZ Herald: Labour’s Kris Faafoi wins Mana by-election (20 November 2010)

NZ Herald: Key backs cut-off for cheap homes plan (18 May 2012)

Scoop: Hobsonville Point a boost for Auckland housing (16 November 2012)

NZ Herald: Quota reintroduced for Hobsonville housing development (16 November 2012)

Additional

Wikipedia: Mana by-election, 2010

Other blogs

Red Alert: Housing response a sham

.

.

= fs =

Three Jokers and an Ace

.

.

This has been one of those strange weeks that only a National-led government can give us. Part of that strangeness has been described in a previous blog, with the antics of  Paula Bennett, Pita Sharples, and a slow train-wreck called ACT.

See: 20 May: End of the Week Bouquets, Brickbats, & Epic Fails

But before the weekend was over, there was more neo-liberal nonsense to follow. One thing you can always count on with the Nats – they’re good for a facepalm on a regular basis…

First Joker: David Carter

Local Government Minister, David Carter’s performance on TVNZ’s  Q+A, on  20 May,  was an exercise in National’s  ‘Daddy State‘ policies revving up several notches.

Not content with forcing assets sales, fracking, and deep sea drilling on us – the NPPB (National Party Politburo of Bunnies)  is now issuing diktats from on-high to local body councils.

Firstly, Kommissar Karter instructed local bodies what was  acceptable “core services” by local body councils,

GREG

Okay, core services – what on earth are core services? Because there seems to be a lot of scope in what a core service is and what a council should be taking care of.

DAVID

Well, it’s certainly clear what core services are, and they are rates and rubbish and water, et cetera. But this legislation’s not about saying to councils, ‘You can only embark on core services.’ It is still the responsibility of the council to engage with its community and find out what services that community wants. But we want that debate to be far more transparent than it has been in the past.

GREG

Well, hold on. It sounds like the Government’s wanting a bob each way in this. They’re wanting to say they keep in touch with what’s happening with the rates, but they’re only to go and do core services at a local level or not. Which way is it to go?

DAVID

We are not saying that councils can only do core services. If you take my Christchurch City Council, for example, and it runs the Ellerslie Flower Show in Hagley Park. You could argue that’s not a core service. The council has determined that there is value in delivering that show for the people of Christchurch, and, frankly, I meet a lot of people on planes who are travelling from all over New Zealand to come to that. The council’s decision is to run the Ellerslie Flower Show, and that is a decision for the council to make. It’s certainly not a decision for central government to make or for myself as minister.  “

Then the Minister advised the Great Unwashed what was not acceptable “core services”,

”  DAVID

We’re certainly going to get local government to be far more focused on what activities it undertakes. In the past, some councils have stepped too far and undertaken activities, Hamilton city, for example, with the Grand Prix racing. I think that was an activity that went far beyond where local government should have gone. It cost local government in that area a lot of money. We’re not saying you cannot run race cars; we’re saying you need to think very very carefully before undertaking that activity. And by putting these financial management tests in place, I think councils will think more carefully about some of those longer-term extraneous activities they’re undertaking than they did in the past.  “

So according to Kommissar Karter,

  • V8 car races – out
  • Flower shows – in
  • Asset sales – in
  • local democracy to choose our own expenditure: out
  • centralised, National Party control over expenditure: in
  • core service by councils – tba

The Minister then added, for good measure in case the proles had not understood his Diktat from On High,

”  DAVID

You’re hitting on the essence of the relationship that should be between local government and central government. It has to be truly a partnership, but it’s not on for local government then to step into the space which is clearly central government’s role. And it is central government’s role to establish the education system in this country. It is central government’s role to establish parameters of measuring the success of that. We can then work with Len Brown and his council, particularly as he tries to develop solutions to some of the social problems in South Auckland, and we’re happy to work with him in a partnership. But the core responsibility still remains with central government.

Which, if implemented, would mean that Otorohanga’s Council-led  and community-based initiatives – which has seen unemployment and youth problems plummet – would not be a core Council responsibility?

.

Frank Macskasy Frankly Speaking Blog

Full story

.

Had National’s policy of curtailing Council activities been in full-force, youth unemployment and associated problems would remain unchanged, or probably much worse in that small town.

See also:  Youth unemployment a growing problem

Or was the Minister expecting Otorohanga to wait for Central Government to address the worsening crisis of youth unemployment? Youth unemployment which has rocketed from 58,000 to 87,000 this year?

How would National’s policy, to “reign in” local Councils,  impact on other towns and cities that attempted to take steps to address our growing social problems? Would Auckland prohibited from pursuing a programme similar to Otorohanga?

.

Frankly Speaking Frank Macskasy Blog

.

David Carter’s performance on Q+A was simply breath-taking. If anyone thought that Labour was guilty of  creating a “Nanny State” – they had to watch Carter to see National go several steps further. In effect, central government will be dictating to local bodies what they can or can’t do.

Democracy? Not in our towns or cities, according to Minister Carter.

National is taking over. Curfew at 7PM.

See transcript: Q+ALocal Government Minister David Carter interview

See video:   Q+A: Local Government Minister David Carter (15:28)

The irony here is that whilst National stands by and watches unemployment soar, local communities, through their elected representatives,  are taking steps to address this growing problem.

Meanwhile, National’s response to unemployment is not to implement job creation programmes – their  response is to fiddle with welfare.

Which leads us to the next issue…

.

Second Joker: Paula Rebstock

Q+A’s interview with Paula Rebstock – appointed by Welfare Minister Paula Bennett to head a board to oversee the implementation of National’s welfare “reforms” – is continuing National’s mission to demonise the unemployed; widows; solo-mums (but never solo-dads), and others who rely on social welfare to survive.

Since National has no job-creation plan,  Dear Leader and Paula Bennett are shifting responsibility for lack of jobs onto welfare beneficiaries. (Because we know that welfare pays for the mansion, limousine in the drive-way, and the beach house in Hawaii. Oh, wait, no, that’s John Key.)

It is a most pernicious form of scape-goating.

It is shameful, and panders to the nasty prejudices that reside in the dark depths of our vestigial reptilian hind-brain. For the Working and Middle Classes, who have always had the sneaking suspicion that welfare offers an opulent lifestyle – until they themselves are made redundant – only to then discover the true nature of just how paltry welfare actually is.

To put this issue into some context, New Zealand’s unemployment doubled after the global financial crisis and resulting recession,

.

Frank Macskasy Frankly Speaking Blog

Source

.

Rebstock headed the infamous “Welfare Working Group” in 2010. Some of the  recommendations of the WWG were so punitive and inhumane as to return to the Victorian Era. Even John Key was moved to reject many of Rebstock’s extreme proposals.

In November 2010, Rebstock was interviewed by Paul Holmes on Q+A,

”  PAUL

So that means a bit of government intervention, that means government providing these [jobs], presumably.

PAULA

Well, I don’t know if it does, and I think this is a really important point. If we look at how the labour market in New Zealand has performed, it is true we’ve been in a recession and we’re now moving into a slow recovery and jobs have been an issue, but since 1986 this economy has created more than 500,000 jobs. Now, it responded as well as almost any economy in the world to the economic environment. We had one of the highest employment rates in the OECD. I think that it is a little bit of a cop-out to say that we can’t deal to some of the issues around long-term benefit dependency because of the job market.

PAUL

Oh, come on, Paula, the jobs simply aren’t there. I mean, if you look at 2006, there was a 30,000 net gain of jobs. In 2008 it had gone down a bit – 9,000 net gain. God knows what it is this year.

PAULA

We actually are experiencing a gain in jobs. The labour statistics that came out last week show that. I’m not saying that we haven’t been in a recession, Paul, but this is the time right now to prepare people for the recovery. They need to be ready to take the jobs that are there.  “

See:  Holmes interviews Paula Rebstock (15 November 2010)

Unfortunately for everyone, the jobs were not “out there”.  With the recession is full swing, exports were down, and companies were laying off staff in their hundreds.

Unemployment in November 2010 was 6.4%. By January 2011, it had reach 6.8%. The rate moved up and down, and currently sits on 6.7%.

See:  Unemployment rate lifts to 6.7pc

Fast forward 18 months, and despite the economy continuing to stagnate, National is pursuing it’s scape-goating of unemployed and solo-mothers (but never solo-dads), and Rebstock and Bennett are both  still ‘singing the same song’.

On 16 May, Bennett said,

The cost of today’s total number of beneficiaries is estimated at $45 billion. It makes good economic and social sense to provide targeted support up front to get more people into work sooner.

This new approach will be embedded at all levels of the welfare system and the board will be responsible for ensuring accountability and overseeing the delivery of reforms that will see fewer people on welfare for long periods.

See:  Minister defends new welfare board

Not. One. Word. About. Job. Creation.

National is displaying an almost Obsessive-Compulsive antipathy on welfare issues.  Their sole focus is on welfare and welfare beneficiaries.

As if 80,000+ New Zealanders decided to chuck in their jobs in the last few years, and instead live the life of luxury on $204.96 a week (net).

See:   WINZ  Unemployment Benefit (current)

Yet, not too long ago (29 April), Social Welfare Minister Paula Bennett actually admitted,

PAULA         
No. There’s not a job for everyone that would want one right now, or else we wouldn’t have the unemployment figures that we do.

See:  TVNZ Q+A: Transcript of Paula Bennett interview (29 April)

So why is National spending $1.1 million on Rebstock’s ‘Work and Income Board’ to oversee WINZ – when it ain’t welfare that’s broke. It’s the job market that is 160,000 jobs short?!

See:  Rebstock to head welfare watchdog panel

Bennett goes on to say,

”  I’ve got fantastic frontline staff, I’ve got fantastic upper and middle management that are working hands on with policy changes and implementing that frontline.  “

“Fantastic front line staff”.

“Fantastic upper and middle management”.

“Working hands on with policy changes”.

But no jobs.

.

Third Joker: John Key

National’s “Gateway” scheme had its origins during the Mana by-election, in 2010. As some will recall, it was National’s grand plan to beat the Labour candidate, Kris Faafoi.

National’s candidate was… Hekia Parata – the current Minister for Education.

Ms Parata lost by 1,406 votes to Labour’s candidate. (The margin widens when adding centre-left votes for the Greens and Matt McCarten.)

See: Mana By-election 2010

It appears that the “Gateway” scheme was little more than an election bribe for Mana voters; a “lolly” to entice people to vote for Parata.  National lost, and were stuck with fulfilling their policy pledge.

(Damned inconvenient when that happens, I guess.)

.

Full Story

.

Heatley touted the scheme, grandly proclaiming,

It is important the government provides opportunities for people to move into home ownership. Affordable homes schemes such as Gateway is another way we can assist more people into a home of their own.”

But by May of this year, it seems that it was ‘no longer important the government provides opportunities for people to move into home ownership’.

John Key announced it’s cancellation last week.

For a man who was raised in a taxpayer funded, and subsidised, state home with his siblings and widowed mum, and who benefitted from a societal  value that decent housing was a basic human right – John Key has some very strange attitudes toward providing shelter for the poor and vulnerable,

.

Full story

.

The Gateway scheme details,

GATEWAY SCHEME
* For first home buyers earning under $100,000 a year
* They can get a mortgage to build or buy a house on state land
* Must have at least a 10% deposit
* Have 10 years to buy the land

It’s interesting to note that Key is unable to deliver “low cost” housing for couples earning under$100,000 and says,

The Government has looked at that programme and decided that’s now not the most effective way of going forward.

So we think the capacity for lower income New Zealanders to own their own home is greatly enhanced by the fact interest rates are lower.

“If you have a look at the average home owner in New Zealand, they are paying about $200 a week less in interest than they were under the previous Labour Government.” – Ibid

His comments raises several issues,

  1. It says a lot about Key’s impression of what constitutes “lower income New Zealanders” when the threshold is up to $100,000 per couple. Perhaps by his multi-million dollar standards, a couple on $100,000 is “poor”?
  2. Derides the previous Labour government and claims credit for lower interest rates, by stating “they are paying about $200 a week less in interest than they were under the previous Labour Government“. As if current low interest rates are a result of National’s intervention? (Interest rates are determined by the Reserve Bank, and are currently low because our economy is stagnant. National can take credit for the latter, but not the former.)
  3. How can  providing decent, affordable housing for low income earners  be “not the most effective way of going forward” ?
  4. Key is living in a millionaire’s fantasyland if he seriously believes that “ the capacity for lower income New Zealanders to own their own home is greatly enhanced by the fact interest rates are lower“.  Dear Leader doesn’t understand that the interest rate can be irrelevant if people can’t afford to buy a home in the first place.

If ever there was ever an instance of the Silver Spoon mentality – look no further than our current Prime Minister, the Rt Honourable John Key.

New Zealanders are deluded if they think this man can relate to their ordinary, everyday, lives.

.

The Ace: John Tamihere

As mentioned in a previous blogpost, John Tamihere is hosting an excellent, low-key, intelligent, current affairs chat show on TV3 (Sunday mornings) called “Think Tank“.  Last Sunday’s (20 May) episode focused on child poverty in New Zealand and what practical steps were required to address this growing social crisis.

Last week, it was pokie machines and their effects on communities.

As the show’s name suggests, the goal is not just to look into critical social issues – but to come up with solutions.  The show’s panel of four people offers solutions; and the guests scrutinises each suggestion.

It’s a chat show for sure – but instead of superficial inanities, the conversation is serious and fit for adult consumption.

This is good television. This treats the viewer as   intelligent and capable of considering complex issues.

This blogger can only live in hope that this is the turning point of 21st century television, and we are seeing an end (or at least slow reduction) of the execrable rubbish we have been served up, since  commercialisation and dumbing down became the norm for broadcasting in this country.

John Tamihere is perfect for the role of host for the show. Not a polished or trained media front-person, John Tamihere has walked the hard yards in life and has moved from the tough neighbourhoods of South Auckland to the halls of power in Parliament. He’s lived life. He’s seen things that Middle Class New Zealand has no wish to see or experience, outside of comfortable television shows.

This blogger’s only criticisms revolve around scheduling and lack of promotion.

Scheduling “Think Tank” on Sunday mornings ghettoises the show. It relegates it almost as an ‘after thought’.  It would be an act of naked political subversion to broadcast it during prime time viewing. (That should give National’s/NZ on Air’s,   Stephen McElrea something to howl about!)

The show also needs more promo on TV3. This blogger discovered it only by sheer fluke. Not promoting it leaves us wondering if TV3 doesn’t really want to draw attention to it? Perhaps doesn’t want to draw the ire of certain National Party ministers?

One hopes not.

TV3, as your print-media colleagues used to say, Publish and be damned !

It’s a good show.

Be proud of it.

.

*

.

Media sources

Loans for housing on crown land

Holmes interviews Paula Rebstock (15 November 2010)

Otorohanga’s success story

Council goes solo to help young jobless

Key backs cut-off for cheap homes plan

Minister defends new welfare board

TVNZ  Q+A: Local Government Minister David Carter (video)

Reserve Bank to keep OCR unchanged though hikes flicker on horizon

References

Official Cash Rate (OCR) decisions and current rate

Previous blogposts

Fear and loathing in the Fascist State of New Zealand

Bennett confirms: there are not enough jobs!

.

.

= fs =