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National continues to panic on housing crisis as election day looms

15 June 2017 1 comment

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The Grand Announcement!

On 3 June, National announced with great fanfare that additional state housing would be made available in Tauranga  and  Papamoa;

Almost 220 new social and transitional places are on the way for Tauranga and Papamoa, the Government has today confirmed.

“We’re on track to have 68 short term transitional housing places available in Tauranga and Papamoa by the end of the year. This will mean we can support up to 272 families in Tauranga and Papamoa every year while long term solutions are found,” says Ms Adams.

“Of those 68 places, 21 places are already open.

“Across the wider Bay of Plenty region, we will be providing a total of 146 transitional housing places meaning we’ll be able to help 584 families every year,” says Ms Adams.

“These houses are in addition to the 290 social houses we’re planning to secure in the Bay of Plenty. These new properties will be a welcome addition to the region, which is an area of growing need.”

Minister Amy Adams emphasised,

“We are working hard alongside providers to address the demand on social housing and help those most in need of warm, safe housing.”

Except…

Which would be fine – except that in December last year, National signed an agreement to sell off 1,138 state houses to IHC subsidiary, Accessible Properties;

Accessible Properties has signed a contract with the Government confirming it will acquire and manage 1,140  [actually 1,138] state homes in Tauranga, and plans to add 150 more houses to its portfolio.

The 1140 homes are currently with Housing New Zealand and will transfer on April 1, 2017. The contract was signed today and Housing New Zealand tenants are receiving letters this week explaining the change of ownership.

It was a similar deal to the one  the Salvation Army walked away from in March 2015;

The Government’s plan to sell off unwanted state houses to community housing providers has been dealt a massive blow with the Salvation Army walking away from the negotiation table.

The Salvation Army announced today it lacked the expertise, infrastructure and resources to deal with the number of houses and tenants that the Government wanted to offload.

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Salvation Army social housing spokesman Major Campbell Roberts said the Government had underestimated the complexity of the task.

“I don’t think there has been enough thinking gone into it.”

Roberts said the current “Housing New Zealand monopoly” wasn’t working, but handing social housing over to single community organisations, like the Salvation Army, would fail.

Community Housing Aotearoa director Scott Figenshow rightly pointed out;

“ Last month the Government confirmed $1.2 billion of deferred maintenance on the state housing stock. Why would a provider want to purchase a liability? ”

IHC/Accessible Properties showed no such hesitation and on 1 April this year the sale was completed. Accessible Properties’ CEO,  Greg Orchard, appeared very pleased with the deal;

“The properties have been assessed as being at a very good standard – we will maintain this and seek to make improvements.”

The sale of the properties took place at the same time that Tauranga was experiencing a housing crisis similar to Auckland’s;

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Which means…

National’s “grand plans” for 220 new social and transitional places remains woefully short of the 1,138 houses that National sold off to IHC’s Accessible Properties at the end of March.

It is also unclear what is meant by “ transitional places“. Are these actual houses? Or motel units, à la Auckland-style;

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Only National would have the brazenness to sell off 1,138 state houses and then announce one-fifth of that number of “new houses” as some sort of “stunning achievement”.

Worse still is National’s over-all record when it comes to State housing;

In 2008, Housing NZ’s state housing stock comprised of  69,000 rental properties.

By 2016, that number had fallen to 61,600 (plus a further 2,700 leased) – a dramatic shortfall of 7,400 properties.

No  wonder we have families living in cars in the second decade of the 21st Century.

Where did those state houses end up?

Promises made…

In September 2009, then-Housing Minister, Phil Heatley, announced that state house tenants would be allowed to purchase the state houses they were living in;

From today those state house tenants in a position to buy the house they live in can do so, says Housing Minister Phil Heatley.

[…]

Over the next week, Housing New Zealand will be approaching about 3,800 state tenants who pay market rent and live in a home that is available for purchase, to make them aware of the opportunity.

[…]

To ensure a property is not on-sold to developers, a tenant who purchases their state house will be unable to reapply for a state house for three years from the date of purchase.

Heatley specifically made clear his opposition to state houses ending up in the hands of anyone but occupying tenants.

In January 2015, our then-Dear Leader, Key, repeated National’s plans to sell state houses – but only to social service providers;

We’ll then look to sell between 1,000 and 2,000 Housing New Zealand properties over the following year for use as social housing run by approved community housing providers.

In doing so, we’ll use open and competitive processes.

Community housing providers may want to buy properties on their own, or they may go into partnership with other organisations who lend them money, contribute equity, or provide other services.

Properties will have to stay in social housing unless the government agrees otherwise, and existing tenants will continue to be housed for the duration of their need.

Selling properties in this way doesn’t reduce the number of social housing places. It just means more of the tenancies will be managed by a non-government housing provider rather than Housing New Zealand.

We’re very conscious that the sale of properties has to work for taxpayers.

We’re looking to get a fair and reasonable price for these properties, bearing in mind they’re being sold as ongoing social houses with high-need tenants.

We’re not selling them as private homes or rentals.

Note his unequivocal guarantee; “We’re not selling them as private homes or rentals”.

As with many of Key’s statements, he was somewhat ‘loose’ with truthfulness.

Promises broken.

By May this year, it became very apparent where many of the 7,400 state houses sold off by National had ended up;

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The article by Virginia Fallon makes this extraordinary revelation;

While the Devon St sale gives buyers the chance to choose their neighbours, it marks a bittersweet ending for Kay Hood, who once owned 80 per cent of the street.

“I would have liked to have bought the sixth one, that’s the only eyesore,” she said.

Over 20 years, Hood and husband Peter bought five houses on the street, and she wishes the last one never got away.

“We bought them off Housing Corp and I did approach them for the last one, but we never got it.”

We bought them off Housing Corp…”?!

So while entire families are camping out in cars, garages, or  –  if they are lucky – motel rooms, private investors have ‘snapped up’ State House properties.

In this case, the Hoods on-sold their investments (ie, former state houses), and were candid in their plans;

“ We’re going to go skiing and spend the children’s inheritance. ”

Personally, I hold no antipathy toward the Hoods. In our current social climate of  hyper-individualism  combined with a degree of moral ambiguity, many of our fellow New Zealanders have exploited opportunities for speculation such as this.

But I do hold 100% responsible John Key and his fellow Ministers-of-the-Crown who allowed this travesty to occur.

More so John Key, who benefitted from a state house in his youth;

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The over-powering stench I can smell is either a dead, rotting whale on my front lawn – or Key’s appalling hypocrisy.

The sound of a train-wreck hurtling toward you

It is abundantly clear that National is panicking over the issue of housing.

Whether it is homelessness or over-crowding by poor families, or home unaffordability for middle-class Millenials, National has managed to spectacularly cock this up.

New Zealanders may be able to tolerate poverty. This country has had varying degrees of poverty since the Year Dot.

But the notion of homelessness is more than they can stomach. Homelessness strikes at the very core of the “Kiwi Dream”, where a roof over your head and a place to raise a family is one of our strongest values. (The other being the now-mythical notion of egalitarianism. That social ideal had the life throttled out of  it after 1984.)

Housing-related problems (I refuse to call them “issues”) for National keep mounting in a Trump-like way.

On 8 June, on Radio NZ, Major Campbell Roberts (the same Maj. Roberts who, in 2015, had thoroughly rejected National’s invitation to buy properties from Housing NZ)  from the Salvation Army’s social policy unit, had been invited by then Finance Minister English to become part of National’s Housing Shareholders Advisory Group.

Maj. Roberts revealed that now-Dear Leader, Bill English, had described a looming housing crisis as far back as 2010;

“ He [Mr English] said a couple of things; one, the use of of the $15 billion asset of Housing New Zealand, and the second was that he was seeing a major crisis in Auckland in housing in five or six years.  It was a passing comment – but it was one of the reasons for setting up the shareholders group.

English’s prediction has eerily come to fruition;

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Unsurprisingly, English rejected Maj. Robert’s revelations using a highly effective technique from his predecessor. One of English’s tax-payer funded spin-doctors said,

The Prime Minister was having a number of such conversations on housing reform at the time, including with a housing advisory group which included the Salvation Army, and he doesn’t recall exactly what he said.

Who else had memory problems when it came to potentially embarrassing gaffs and scandals?

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Meanwhile, in a latest move to dampen the ballooning housing market, the Reserve Bank is contemplating adding a new “tool” to it’s regulatory powers. The RBNZ wants to cap  debt-to-value ratios at five times a borrower’s income;

The Reserve Bank wants to be able to stop people taking out mortgages that are too big compared to their incomes.

It wants debt-to-income restrictions (DTIs), which limit the amount that people can borrow to a multiple of their income, added to its macroprudential toolkit, alongside loan-to-value (LVR) restrictions.

The restrictions are used in other markets around the world, such as Britain, where borrowers must have a loan no bigger than 4.5 times their income. The Reserve Bank is suggesting a limit of five times.

The size of New Zealand mortgages compared to incomes has increased sharply over the past 30 years. The Reserve Bank said increases since 2014 partly reflected the drop in interest rates over that time, but it was possible that rates could rise again in future.

The RBNZ estimates debt-to-income restrictions could prevent 8,800 investors from buying a property. But 1,600 First Home buyers  would also be caught up in stringent DTI restrictions and locked out of  owning their home.

The Bank’s chief agenda is to prevent a massive housing crash that would impact on the economy; cause mass unemployment; and result in thousands losing their homes through mortgage defaulting;

The housing market could collapse if mortgage rates rise to 7 percent, given the increasing numbers of households heavily in debt, the Reserve Bank says.

The Reserve Bank stress-tested the ability of borrowers to cope with mortgage rates at 7 percent, which is close to the average two-year mortgage rate over the past decade.

It found 4 percent of all borrowers, and 5 percent of recent ones, would be put under severe stress where they could not meet day-to-day bills for food and power.

Auckland borrowers appear particularly vulnerable to higher rates, with 5 percent estimated to face severe stress.

[…]

“So that if a downturn comes, you don’t get a whole lot of forced sales coming onto the market that depresses house prices even further, and create a risk for the banking system and also the broader economy.”

All because National ignored a crisis that Bill English predicted seven years ago, and could have dampened with a capital gains tax equivalent to company tax, and stopping investors from claiming tax deductions on mortgage interest payments.

It is bizarre and inequitable that tax-payers are in effect subsidising investor/speculators on their investments. Especially when, after two years, those properties can be on-sold with little or no capital gains tax paid.

If the RBNZ introduces a debt-to-income ratio of five times a person’s income, it may well succeed in dampening down the property bubble.

But as usual, it will be those at the bottom (or near the bottom) who pay the price. They will be the ones who continue to be locked out of the property market and denied a chance to enjoy the Kiwi Dream of home ownership.

The resentment and anger this will cause cannot be over-stated.

The sound in Bill English’s ear is the roar of a train wreck bearing down on him and his hopeless, self-serving ‘government’. ETA for the crash: 23 September.

All because National stubbornly refused to act to curb property speculation.

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References

Scoop media:  More social housing coming on board in Tauranga & Papamoa

NZ Herald:   Government sells off Tauranga’s state housing portfolio to Accessible Properties

Accessible Properties:  What is happening?

Fairfax media:  Salvation Army says no to state houses

Bay of Plenty Times:  Accessible Properties takes over state homes

TVNZ News:  Housing crisis hits Tauranga, forcing families into garages and cars

Bay of Plenty Times:  Tauranga’s homeless problem at ‘crisis point’

Sunlive: Housing crisis under the spotlight

Radio NZ:  Housing situation critical – Tauranga principal

Tauranga Budget Advisory:  City’s Rental Housing In Crisis

NZ Herald:   Govt to buy more motels to house homeless as its role in emergency housing grows

Housing NZ: Annual Report 2008/09

Housing NZ: Annual Report 2015/16

Beehive:  State houses available to buy from today

Fairfax media:  John Key Speech – Next steps in social housing

Fairfax media:  Can’t afford your own island? How about buying your very own street?

NZ Herald:  Prime Minister John Key’s childhood state house up for sale as Government offers 2500 properties to NGOs

Radio NZ:  PM spoke of housing crisis in 2010 – Sallies

Otago Daily Times:  Auckland housing crisis expected to drag on

Fairfax media:  PM talked of major housing crisis – Salvation Army

Dominion Post:  Editorial – Prime Minister’s bad memory embarrassing

Fairfax media:  Debt-to-income ratio would stop thousands from buying houses – RBNZ

RBNZ: Consultation Paper – Serviceability Restrictions as a Potential Macroprudential Tool in New Zealand  (p26)

Radio NZ:  Housing market could collapse on 7 percent mortgage rates

IRD: Residential property

IRD: Taxation (Bright-Line Test for Residential Land) Act 2015

Additional

NZ Herald: Key admits underclass still growing

NewstalkZB: Demand for food banks, emergency housing much higher than before recession

Previous related blogposts

Budget 2013: State Housing and the War on Poor

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This blogpost was first published on The Daily Blog on 10 June 2017.

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Steven Joyce rails against low mortgage interest rates; claims higher interest rates “beneficial”

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National is increasingly on the back-foot with New Zealand’s ever-worsening housing crisis. Ministers from the Prime minister down are desperately trying to spin a narrative that the National-led administration “is getting on top of the problem“.

Despite ministerial ‘reassurances’, both Middle and Lower Working  classes are feeling the dead-weight of a housing shortage; ballooning house prices,  and rising rents.

Recently-appointed Finance Minister, Steven Joyce,  has found a new unlikely scapegoat, blaming the housing bubble and worsening housing affordability  on current low interest rates.  On 11 May, on Radio NZ’s Morning Report, he said;

“We have very, very low interest rates historically, and as a result that’s directly linked to how much house prices are being bid up around the world. It’s not the sole reason for why we have high asset prices around the world, it’s not just houses, it’s shares and everything else. But it is certainly one of the dominant reasons for that. And unfortunately it’s going to be a little bit of time yet before that changes, although there’s indications that this period of ultra-low interest rates that the world has seen is coming to an end. And so I think that, that, will improve affordability over time.”

Radio NZ’s Guyon Espiner reacted with predictable incredulity that Joyce was relying on interest rates rising to “improve affordability over time“.

Joyce’s finger-pointing and blaming “very, very low interest rates historically” is at variance with a speech that former Dear Leader, John Key, gave in January 2008 where he specifically indentified higher interest rates as a barrier to home ownership;

* Why, after eight years of Labour, are we paying the second-highest interest rates in the developed world?

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* Why can’t our hardworking kids afford to buy their own house?

Good questions, Mr Key

Got any answers, Mr Joyce?

Because according to Statistics NZ, home ownership rates have worsened since John Key gave his highly-critical speech, nine years ago;

Home ownership continues to fall

  • In 2013, 64.8 percent of households owned their home or held it in a family trust, down from 66.9 percent in 2006.

  • The percentage of households who owned their home dropped to 49.9 percent in 2013 from 54.5 percent in 2006.

Home ownership reached a peak of 73.8% by 1991. Since then, with  the advent of neo-liberal “reforms” in the late ’80s and early ’90s, home ownership has steadily declined.

Those who have benefitted have tended to be investors/speculators. In 2016, 46% of mortgages were issued to property investors/speculators in the Auckland region. Despite a watered-down, pseudo-capital gains tax,  referred to as the “bright line” test implemented in October 2015, investors/speculators still accounted for 43% of house purchasers by March of this year.

The same report revealed the dismal fact that first home buyers constituted only 19% of sales.

John Key’s gloomy plea, “Why can’t our hardworking kids afford to buy their own house?” rings truer than ever.

Poorer families are fairing no better.

National’s abysmal policy to sell off state housing has left a legacy of families living in over-crowded homes; garages, and cars. This scandal has reached the attention of the international media.

From the Guardian;

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From Al Jazeera;

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As with our fouled waterways, we have developed another unwelcomed reputation – this time for the increasing scourge of  homelessness.

But it is not just the sons and daughters of the Middle Classes that are finding housing increasingly out of their financial reach. The poorest families in our society have resorted to living in over-crowded homes or in garages and in cars.

National has spent millions of taxpayer’s dollars housing families in make-shift shelters in motels. At the behest on National ministers, WINZ have made it official policy to recoup money  “loaned” to beneficiaries to pay for emergency accommodation;

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National’s track record on this growing community cancer has been one of ineptitude.

In 2015, Dear Leader Key made  protestations that  no problem exists in our country;

“No, I don’t think you can call it a crisis. What you can say though is that Auckland house prices have been rising, and rising too quickly actually.”

He kept denying it – until he didn’t;

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Unfortunately, former-and current State beneficiary, and now Social Housing Minister, Paula Bennett, apparently ‘did not get the memo’. She still denies any housing crisis in this country;

“I certainly wouldn’t call it a crisis. I think that we’ve always had people in need. So the other night on TV I heard the homeless story was second in and then the seventh story was a man who’d been 30 years living on the streets.”

Despite  being in full denial, in May last year Bennett announced that National would be committing $41.1 million over the next four years  for emergency housing and grants.

By April this year  it was revealed that National had already spent $16.5 million on emergency accomodation. It had barely been a year since Bennett issued her Beehive statement lauding the $41.1 million expenditure, and already nearly a third of that amount has been spent.

This is clear evidence as to how far out-of-touch National is on social issues.

The stress and pressure on Ministers and state sector bureaucrats has become apparent, with threats of  retribution flying.  This month alone, a MSD manager and associate minister of social housing, Alfred Ngaro, were revealed to have warned critics of the government not to talk to the media;

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Bennett went on to make this extraordinary statement;

“I spend the bulk of my time on social housing issues and driving my department into seriously thinking about different ways of tackling this.”

Her comment was followed on 20 May, on TV3’s The Nation, when current Dear Leader, Bill English tried to spin a positive message in  National’s ‘fight against homelessness’;

“Our task has been to, as we set out three or four years ago, to rebuild the state housing stock. And that’s what we are setting out to do.”

English and Bennett’s claims would be admirable – if they were not self-serving hypocrisy.

In 2008, Housing NZ’s stock comprised of  69,000 rental properties.

By 2016, that number had fallen to 61,600 (plus a further 2,700 leased).

In eight years, National has managed to sell-off 7,400 properties.

No wonder English admitted “we set out three or four years ago, to rebuild the state housing stock“. His administration was responsible for selling  off over ten percent of much-needed state housing.

No wonder families are forced into over-crowding; into garages and sheds; and into cars and vans.

Confronted by social problems, National ministers duck for cover. Especially when those same social problems are a direct consequence of their own ideologically-driven and ill-considered policies.

National ministers English, Bennett, Joyce, Nick Smith, et al are responsible for our current homelessness.

Parting thought

Left-wing parties and movement are generally proactive in identifying and resolving critical social problems and inequalities. It is the raison d’etre of the Left.

The Right seem only able to belatedly react to social problem and inequalities.

Especially when they caused it.

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References

Interest.co.nz: PM says no housing crisis in Auckland

NZ Herald: Housing shortage growing by 40 homes a day

Fairfax media: House prices rise at an ‘eye-popping’ rate for 6 NZ regions – Trade Me

Interest.co.nz: Median rents up $50 a week over last 12 months in parts of Auckland

Radio NZ: Lessons for NZ in Australia’s Budget

NZ Herald: John Key – State of the Nation speech

Statistics NZ: 2013 Census QuickStats about national highlights

Statistics NZ: Owner-Occupied Households

Radio NZ: Homeless family faces $100k WINZ debt

Interest.co.nz: New official Reserve Bank figures definitively show that investors accounted for nearly 46% of all Auckland mortgages

Simpson Grierson: New “bright-line” test for sales of residential land

Property Club: First buyers still missing out in Auckland’s most affordable properties

The Guardian: New Zealand housing crisis forces hundreds to live in tents and garages

Al Jazeera: New Zealand’s homeless – Living in cars and garages

NZ Herald: No house, not even a motel, for homeless family

Radio NZ: Key denies Auckland housing crisis

Radio NZ: No housing crisis in NZ – Paula Bennett

Beehive: Budget 2016 – 3000 emergency housing places funded

Mediaworks: Homeless crisis costing Govt $100,000 a day for motels

Radio NZ: Emergency housing providers instructed not to talk to media

Radio NZ: Ngaro apologises for govt criticism

TV3: The Nation – Patrick Gower interviews Bill English

Housing NZ: Annual Report 2008/09

Housing NZ: Annual Report 2015/16

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 Minister Paula Bennett continues National’s spin on rundown State Houses

Another ‘Claytons’ Solution to our Housing Problem? When will NZers ever learn?

Government Minister sees history repeat – responsible for death

Housing Minister Paula Bennett continues National’s spin on rundown State Houses

Letter to the Editor – How many more children must die, Mr Key?!

National under attack – defaults to Deflection #1

National’s blatant lies on Housing NZ dividends – The truth uncovered!

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Problem…

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Solution.

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This blogpost was first published on The Daily Blog on 21 May 2017.

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When Life is a Lottery

20 November 2016 2 comments

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Fun Fact #1: Between 2006 and 2013,  the number of homeless grew by 25%. Based on Census data;  one in 100 were homeless in 2013; one in 120 in 2006, and one in 130 in 2001.

Fun Fact #2: In 1986, home ownership in New Zealand stood at 73.5%. By 2013, Census data showed home-ownership had fallen to 64.8%.

Fun Fact #3: In August this year, Auckland’s average house price reached – and passed – the $1,000,000 mark.

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Make no mistake, housing has become a crisis in New Zealand as this May poll for  a TV3/Reid Research Poll highlighted;

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tv3-news-housing-poll

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Even 61% of National voters accepted the new reality in our once-egalitarian nation. Housing unaffordability (for the middle classes) and homelessness (for beneficiaries and the working poor)  could no longer be ignored.

Stepping back to 20 August 2007, National’s newly-elected leader, John Key, made an impassioned speech to the  Auckland branch of the New Zealand Contractors Federation. In it, he excoriated the then-Clark-led Labour government;

“Over the past few years a consensus has developed in New Zealand. We are facing a severe home affordability and ownership crisis. The crisis has reached dangerous levels in recent years and looks set to get worse.

This is an issue that should concern all New Zealanders. It threatens a fundamental part of our culture, it threatens our communities and, ultimately, it threatens our economy.

The good news is that we can turn the situation around. We can deal with the fundamental issues driving the home affordability crisis. Not just with rinky-dink schemes, but with sound long-term solutions to an issue that has long-term implications for New Zealand’s economy and society.

National has a plan for doing this and we will be resolute in our commitment to the goal of ensuring more young Kiwis can aspire to buy their own home.”

Nine years later, Key’s description of New Zealand’s housing crisis has changed markedly. It is now a “challenge“, as he painfully tried to explain on TVNZ’s Breakfast programme;

“I don’t think it’s a crisis, but prices are going up too quickly. There are plenty of challenges in housing, and there have been for quite some time.”

On 9  November, a Hibiscus Coast couple were the incredibly lucky couple to win the latest multi-million dollar Lotto prize;

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claimed-44-million-lotto-prize-radio-nz

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The Radio NZ story further reported;

The man’s wife said at first she thought her husband was joking about the win.

“My head started spinning, my heart was racing and I got the shakes.”

The couple claimed their prize at Lotto’s head office on Thursday afternoon.

“As we sat in the winner’s room, he kept turning to me and saying ‘Am I in a dream?’ and I kept turning to him and saying ‘is this real?'” the woman said.

“We’ve been busting our guts trying to buy our first home,” the winner said.

“We just went to the mortgage broker earlier this week to see what they could do to help. But they just couldn’t make anything work for us.

“We were absolutely gutted and I just said ‘maybe that ship has sailed’.

“But my wife tried to stay positive and said ‘don’t worry, something good will happen for us’.

“I don’t think either of us thought that the something good would be $44 million.”

Note what the woman said here;

“We’ve been busting our guts trying to buy our first home. We just went to the mortgage broker earlier this week to see what they could do to help. But they just couldn’t make anything work for us. We were absolutely gutted and I just said ‘maybe that ship has sailed’.”

When couples have to rely on winning Lotto to be able to afford to buy their first home,  there is something seriously askew in society.

Remember Dear Leader Key’s own words;

“We are facing a severe home affordability and ownership crisis. The crisis has reached dangerous levels in recent years and looks set to get worse. This is an issue that should concern all New Zealanders. It threatens a fundamental part of our culture, it threatens our communities and, ultimately, it threatens our economy.”

In the United States, commentators from the msm, politics, dissident community; and further afield, have rapidly come to the realisation that Donald Trump’s unlikely, unforeseen, and up-till-now improbable victory in the 2016 Presidential  race was predicated on the belated understanding that globalisation and neo-liberalism  have left behind millions of people.

In the Voting Booths across the United States, Consumers became Citizens again, and cast their ultimate sanction against the political establishment and those who supported the neo-liberal orthodoxy. The status quo of Margaret Thatcher and Ronald Reagan (the latter, ironically a Republican like Trump) was utterly repudiated.

The disenchantment and alienation of the Working and Middle classes germinated during the 2008 Global Financial crisis and resulting Great Recession – the effects of which are still with us, eight years late. In the United States, millions of Americans lost their homes.

More than four million Americans have lost their homes since the housing bubble began bursting six years ago. An additional 3.5 million homeowners are in the foreclosure process or are so delinquent on payments that they will be soon. With 13.5 million homeowners underwater — they owe more than their home is now worth — the odds are high that many millions more will lose their homes.

Most telling was this criticism by

Housing remains the biggest impediment to economic recovery, yet Washington seems paralyzed. While the Obama administration’s housing policies have fallen short, Mitt Romney hasn’t offered any meaningful new proposals to aid distressed or underwater homeowners.

Writing for the Huffington Post a year later, David Coates pointed out

“… the vast majority of those four million lost their homes because they lost their jobs, not because they had in better times taken out mortgages that they could not afford.

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It is not the rich who are being foreclosed. It is those on the margin of the core middle class. It is particularly middle class minorities who have taken the greatest hit on both their personal wealth and their associated credit scores. Falling house prices since 2008 have pulled median white net-worth down by 27 percent but median black net-worth down by anywhere between 40 percent and 53 percent.”

All the promises of neo-liberalism had come to nought. Instead millions had lost their jobs and those lucky enough found new work in low-paid service industries. Take-home pay was cut – and Humiliation applied in abundance as ‘compensation’.

The Working and Middle Classes not only lost their job and homes – their new status in low-paid work was precarious.

Events post-2008 hastened the  demise  of the American Dream and the rise of the Precariat, as Richard  McCormack wrote, in February of this year for the Manufacturing and Technology News;

The effects on the U.S. economy caused by 30 years of offshore outsourcing of production and jobs is starting to drive major changes in the American political system. The rise of a “precariat” class of Americans — those who are living “precarious” lives — has created a populist movement that shows no sign of acquiescing to the “establishment” in both the Democratic and Republican parties.

The new precariat comprises a growing class of people who are going nowhere in their jobs, who are insecure and unstable. The group is “experiencing the breaking apart of the American Dream, which is what historically held the country together — the rise of the middle class, with everyone doing better,” notes visiting scholar John Russo of Georgetown University’s Kalmanovitz Initiative for Labor and the Working Poor. “It’s not working that way any more.”

Driving the rise of the precariat is a society that is not generating enough wealth. De-industrialization, the shift of major goods-producing industries to foreign nations, and both the Republican and Democratic establishment’s embrace of free trade, are leading to a populist uprising.

The precariat is becoming one of the largest classes of Americans, encompassing far more than blue-collar workers who have been slammed by economic forces outside of their control. It now includes millions of Americans with college degrees who are under compensated or can’t find full-time employment with benefits.

As white-collar jobs have been outsourced, Americans with more than high-school degrees are starting to see their prospects “mirror those of the working class,” says Russo. “That insecurity and instability is now part of their life. That is why this new group is not yet a class in itself. It hasn’t defined what it is going to be.”

It is fragmented, but it is big, and much of it is angry.

In his article, McCormack quotes John Russo from the Georgetown University’s Kalmanovitz Initiative for Labor and the Working Poor;

“As steady formal work has been disappearing over time, informal work began to move beyond traditional concepts such as consulting, internships, subcontracting, privatization and intermittent employment,” Russo explains. “Rather than the continued rise of the formal economy, it is the informal economy that is growing.”

The precariat is “potentially all of us united by the fear of insecurity,” he notes. It is made up of “individuals living precarious and insecure existences lacking employment security, job security, income security, skill security, occupational security and labor market security.”

This is no longer the underground economy, but includes displaced individuals from the public and private sectors, millennials dealing with mountains of student debt, and baby boomers forced into early retirement without enough savings to support themselves.

There is little public assistance for the precariat class and “they’re not making demands to get better wages or improved benefits [because they] are replaced easily,” Russo notes.

Three years after Coates’ story,  and nine months after McCormack’s insightful analysis of the public mood, Trump’ ascendance as America’s 45th President was complete. Trump won the States where blue-collar workers had suffered the most.

The story of globalisation and neo-liberal “reforms” of our own economy has followed a familiar story; loss of long-term employment; ever-increasing need for re-training; the rise casualisation and contract piece-work; and the increase of lower-paid service-work.

Depressingly, economist Shamubeel Eaqub has predicted;

“The workplace is likely to be further casualised. “

Which adds further hopelessness to New Zealanders increasingly locked out of what was once known as the Great Kiwi Dream of home-ownership.

The National government ostensibly understands the notion of aspiration, as Dear Leader Key said six years ago;

“I want New Zealanders to be aspirational – to want more for themselves and their families, and to know that they have opportunities to do that.”

Those words ring hollow as National scrambles frantically to make itself  “look busy”, trying to alleviate the dual crisis of  worsening home ownership and homelessness.

Bennett’s suddenly-announced  policy of bribing state house tenants with (up to) $5,000 was widely seen as a panic-driven, ad hoc policy. It certainly caught Finance Minister Bill English by surprise, having no forewarning of Bennett’s media announcement on the issue.

The twin tsunami-waves of homelessness and housing unaffordability appears to have utterly over-whelmed National Ministers.

As Trump’s victory in the US Presidential election has demonstrated with crystal clarity, Consumers can easily become  Citizens again, re-discovering the power of their Vote. When Citizens’ anger becomes focused, and a perceived solution (or even just an opportunity to say “FUCK YOU!” to the Establishment) is put before them – they will vote for it.

Especially when they have lost so much, and have little left to lose.

Such was the case of  the US presidential elections, and before that, the ‘Brexit’ Vote.

As New Zealanders become more and more conscious of how much they have lost in the last thirty years, they too, will find themselves pissed off.

The opening lines of the song  from ‘Les Miserables’ – Do You Hear The People Sing? – should serve as a reminder to the political establishment in this country;

“Do you hear the people sing?
Singing the song of angry men?”

The Great Kiwi Dream of home ownership was never predicated on the long-odds offered by  a little yellow piece of paper;

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lotto-ticket

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Home ownership should not be a Lottery.

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References

Otago Daily Times: Homelessness increasing in NZ

Fairfax media: NZ home ownership at lowest level in more than 60 years

Radio NZ: Auckland’s average house value tops $1 million

TV3 News: Government gets thumbs down on housing

Scoop: Key – Speech to New Zealand Contractors Federation

TVNZ: Is there a housing crisis? John Key fails to say yes or no after being put on the spot

Radio NZ: Claimed – $44 million lotto prize

NY Times: The One Housing Solution Left – Mass Mortgage Refinancing

Huffington Post: America’s Half-Forgotten Housing Crisis

Manufacturing and Technology News: The Rise Of The American ‘Precariat’ – Globalization And Outsourcing Have Created A Combustible Political Culture

Chicago Tribune: How Trump won the presidential election – Revenge of working-class whites

Fairfax media: Shamubeel Eaqub – Job casualisation a global phenomenon

NZ Herald: John Key’s speech to the National Party convention

Interest.co.nz: Paula Bennett announces plan to offer $5,000 to homeless Aucklanders and state house tenants to leave Auckland

TV3 News: Govt to help fund Auckland homeless to move

Metrolyrics: Les Miserables – Do You Hear The People Sing?

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!

Government Minister sees history repeat – responsible for death

Housing Minister Paula Bennett continues National’s spin on rundown State Houses

Letter to the Editor – How many more children must die, Mr Key?!

National under attack – defaults to Deflection #1

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)

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

Another ‘Claytons’ Solution to our Housing Problem? When will NZers ever learn?

National’s blatant lies on Housing NZ dividends – The truth uncovered!

National and the Reserve Bank – at War!

The seductiveness of Trumpism

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wheel-estate

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This blogpost was first published on The Daily Blog on 15 November 2016.

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= fs =

Rebuilding the Country we grew up in – Little’s Big Task ahead

17 July 2016 1 comment

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1949-state-house-in-taita b

 

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2007: John Key says Housing is in crisis

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On 20 August 2007, National’s new leader, John Key, made a stirring speech to the  Auckland branch of the New Zealand Contractors Federation. In it, he lambasted the then-Clark-led Labour government;

“Over the past few years a consensus has developed in New Zealand. We are facing a severe home affordability and ownership crisis. The crisis has reached dangerous levels in recent years and looks set to get worse.

This is an issue that should concern all New Zealanders. It threatens a fundamental part of our culture, it threatens our communities and, ultimately, it threatens our economy.

The good news is that we can turn the situation around. We can deal with the fundamental issues driving the home affordability crisis. Not just with rinky-dink schemes, but with sound long-term solutions to an issue that has long-term implications for New Zealand’s economy and society.

National has a plan for doing this and we will be resolute in our commitment to the goal of ensuring more young Kiwis can aspire to buy their own home.”

(Hat-tip: Bert)

In 2007, Key described “home affordability and ownership” as a “crisis”.

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2016: John Key says Housing is a more like a “challenge”

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Almost exactly five years, one of my first blogposts involved the looming housing crisis. On 3 August, 2011, I wrote;

The shortage of state housing is a serious matter, though. This critical problem of decent, affordable housing is not helped by the fact that the Fourth National government (1996-1999) sold around 13,000 State Houses in the 1990s.  These properties were supposedly made available to tenants – but actually went mostly to property speculators (who later sold them for tax-free capital gains).

When Labour was elected to power in November 1999, they immediatly placed a moratorium on the sale of state housing. According to HNZ, they currently ” own or manage more than 66,000 properties throughout the country, including about 1,500 homes used by community groups”

This government has re-instated the sale of state houses.  It does not take rocket science to work out that selling of state housing reduces the availability of housing stock.   Housing Minister Phil Heatley said that,

“… about 40,000 of the 69,000 state house stock will be available for sale,”  but then added,  “that the vast majority of tenants do not earn enough to be required to pay market rent means relatively few will be in a position to buy“. (Source.)

There seems to be nothing stopping tenants from buying their state house and immediatly on-selling it to a Third Party.

Is it any wonder that the shortage of state housing is not being addressed in any meaningful way?

That was five years ago.

The housing crisis appears to have only recent dawned on National ministers. As Social Housing Minister, Paula Bennett  said on 25 May this year;

“Certainly what we’ve seen is it has been more acute in the last two years.”

It is most certainly not a recent problem.  It is only “new” if you are a well-paid National minister, living in a tax-payer-funded residence.

In my blogpost five years ago, I offered a solution to the housing crisis confronting this country;

Solution: build more houses.

This may seem like a ‘flippant’ answer to a desperate problem – but it is not.

The building of 10,000 new state houses may seem an outrageously expensive idea.  But it would address at least three pressing problems in our economy and society;

1. Persistantly high unemployment.

2. Low growth.

3. Inadequate housing for the poorest of our fellow New Zealanders.

At an average housing cost of $257,085 (calculated at DBH website @ $1,773/m for a 145 square metre, small house), the cost (excluding land) is $2.57 billion dollars,  including GST (approximate estimate).

By contrast, the October 2010 tax cuts gave $2.5 billion to the top 10% of income earners.

For roughly the cost of last year’s tax cuts, we could have embarked on a crash building-programme to construct ten thousand new dwellings in this country. …]

It would be a boom-time, as two and a half billion dollars was spent on products and services.

Would it actually end up costing taxpayers $2.57 billion dollars? The answer is ‘no’.  Government would actually re-coup much of that initial outlay through;

  • gst
  • paye
  • other taxes
  • reduced spending on welfare for unemployed
  • and investment re-couped by rent paid for new rentals

Would it work?

Yes, it would.  An NZIER survey expects a strong pick-up in 2013 when the rebuilding phase hits full-flight, with 3.9% annual growth predicted from a previous forecast of 2.6%.

[…]

There is no reason why a determined government cannot adopt a bold programme for economic growth.

Instead of borrowing to pay for tax cuts we can ill afford, we should be investing in jobs.  The rest will almost invariably take care of itself.

We have the resources. We have the money. We have the demand for new housing. What else is missing?

The will to do it.

National has been half-hearted in it’s will to address this crisis. It has implemented a few lukewarm, ad hoc measures, but they are five years too late and too little.

Some of National’s announcements have been panic-driven;

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Paula Bennett announces plan to offer $5,000 to homeless Aucklanders - interest

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At other times, National has indulged in it’s favourite past-time of “blame-gaming”;

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housing crisis - national - blame game

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By 2016, under Key’s watch, homelessness has increased; housing affordability has worsened, and home ownership has plummeted. Our esteemed Dear Leader no longer calls it a “crisis“. It is now just a “challenge“;

“I don’t think it’s a crisis, but prices are going up too quickly.”

“There are plenty of challenges in housing, and there have been for quite some time.”

Make no mistake, this is a direct consequence of National’s laissez-faire approach and an opportunistic reliance on mass immigration to keep the economy afloat at a time when dairying is no longer the main driver of economic growth.

By any definition, National’s “hands off” approach to housing – whether social housing for the poor or affordable housing for the Middle Classes – has been an abject failure.

The mood for change has never been as palpable since the dying days of the Shipley-led National government in 1999.

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The Labour Response

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On 10 July, Labour leader Andrew Little congratulated Labour on it’s 100th year birthday. He also put the boot firmly and fairly up National’s backside for it’s hopeless track record on housing.

If the supply of food were in short-supply and expensive as is housing for poor and middle-class New Zealanders, there would be rioting in the streets by now. By morning there would be a revolutionary government sitting in the Ninth Floor of the Beehive and Key and his ministerial cronies would be in hiding, exile, or under arrest.

Little began with a brief, but accurate refresher course in New Zealand history;

“We’re here to celebrate Labour’s creation of the welfare state, the achievements of widespread home ownership and the creation of state housing, a free health system and a free education system.

In short, we celebrate the building of a nation.

We celebrate and we remember the image of Michael Joseph Savage carrying the very first furniture into the very first state house.

Offering hope to people that the years of depression were over and there were brighter days ahead.

We’re here to celebrate the beginning of the reconciliation between Maori and Pakeha and the restoration of the mana of the Treaty of Waitangi.

We’re celebrating the decision to make New Zealand nuclear free. We celebrate the courage shown by thousands of New Zealanders who marched against the Springbok Tour.

We’re celebrating KiwiBank. Kiwisaver. Working for Families. The Cullen Fund.

We celebrate Homosexual Law Reform and we remember the scene of the packed galleries in Parliament rising in song after we passed Marriage Equality.

These are Labour achievements.

This is the legacy of our party.”

Little omitted Labour’s de-railing in the 1980s at the hands of a small cadre of Neo-liberal fifth columnists. They who delivered our country into the hands of  global finance. They who were the  authors of a failed economic experiment that caused generations of misery, and rewarded the top 10% with unearned wealth. They whose names will pass into history and be quietly forgotten.

This was a moment where Little – like his predecessor David Cunliffe –   turned his back on neo-liberalism and announced to the country that the experiment was over. Labour would take back the reigns of responsibility for ensuring housing for all;

“After eight years, this government’s lost touch.

And nowhere, nowhere, is this government more out of touch and out of ideas than on housing.

Housing is at the core of a good life.

It provides security and stability.

It helps families put down roots in their communities and save for retirement

It is one of the most common sources of capital for people setting up their own small business.

The ambition of widespread homeownership sits at the heart of our social contract. It is at the heart of the Kiwi Dream.

The promise that if you work hard and do the right thing, you can earn a place of your own.”

A few salient statistics drove home the worsening crisis to anyone who needed convincing;

“Since 2008, when this government came to office, the average house price in Auckland has nearly doubled.

But over the same period, incomes have increased by only 24%.

In the last year, house prices in Auckland have increased by $2600 a week.

Twenty six hundred dollars a week.

It’s crazy. How on earth do you save enough to keep up with that?

[…]

The proportion of Auckland houses being bought by investors has now reached 46% – around twice the level of first home buyers.”

Little went on to explain how the housing crisis went in tandem with other worsening social indicators;

“And then there is the hard edge of the crisis.

The rising poverty and homelessness that National turns a blind eye to.

We’ve all heard the stories of Kiwi kids admitted to hospitals with respiratory illnesses because the cold damp homes they have to live in are making them sick.

We’ve all seen the awful media reports in the last few weeks about what life is like for those who can’t find any home at all.

Of the 42,000 people living in overcrowded conditions or in garages or in cars.

Of children sleeping under bushes in South Auckland.

We’ve seen the story of the 11 year old girl, whose mother has a job, but whose family spent months living in a van before they were taken in by Te Puea Marae.

She said that the hardest part is actually not being able to read in the van, because you don’t have space. And there’s not much light because it would waste the battery.”

These are matters raised that Labour’s opponants on the Right cannot easily dismiss or explain away. These are real events from real New Zealanders living under the currently all-too-real neo-liberal system.

Increasing child poverty; income/wealth disparity; and a worsening housing crisis – all of which are the spawn of thirty years of neo-liberalism.

Those who maintain that poverty has deepened because the “market” has not been sufficiently de-regulated, nor government reduced, nor taxes sufficiently cut, need to ask themselves; “At what point does an experiment that is showing no signs of positive improvement have to be concluded as an abject failure”?

As Little demanded from the party-faithful;

“When did this become the New Zealand we lived in?”

Little then laid out what he called Labour’s comprehensive plan to take to the  election next year. He said that a Labour government would;

 

  • …urgently address the shortage of emergency housing – with $60 million to provide 1400 new beds in emergency accommodation – enough for 5100 extra people a year. With the existing support that will take the number of people helped each year to over 8,000.

 

  • …reform housing New Zealand – so that instead of being run like a corporation making a profit off the most vulnerable, we can invest hundreds of millions of dollars in building thousands of new, modern, high quality state houses instead.

 

  • …will build 100,000 new affordable homes to be on sold to first home buyers.

 

  • …will set up an Affordable Housing Authority to deliver ambitious new urban development projects, at scale and at pace. We are going to change the face of our towns and cities, and fix this housing crisis. The Authority will have a target to meet: 50% across all of the homes in its developments will have to be affordable. The Authority will look after the Government’s urban land holdings, and will make sure there is a pipeline of land for future needs – for housing, business, schools, parks and hospitals.

 

  • …ban offshore buyers from the market unless they are willing to build a new home and add to the stock..

 

  • …will extend the bright line test so that if you sell an investment property within five years, you’ll pay the full tax on it. That means the short term speculators won’t be able to get away tax free anymore. It means ending the tax incentives to speculate in short term property gains at the expense of families trying to get into a home.

 

  • …will begin consulting on how to end the loop hole of negative gearing.

 

Perhaps Labour’s most audacious plan is to set up a new “Affordable Housing Authority”.

If one reads his speech a certain way, he is planning on reviving a newer, 21st century version of the old Ministry of Works (which was privatised by National in late 1996.) If so, it could be the most direct  way to build houses for people in desperate need.

Considering that most of this country’s infra-structure was built by the old Ministry of Works (or similar state bodies), including the telecommunications systems being used to upload this blogpost onto this website, it would not be a far-stretch of the imagination that it could be done again.

If so, this wasn’t just a speech – it was a Manifesto for the Last Rites of Neo-liberalism.

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Property Investors throw their toys out of the cot

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The reactionary response from the NZ Property Investors Federation was utterly predictable. They were miffed. All of a sudden, their tax-free pot of gold was about to be denied to them

The Federation’s executive officer, Andrew King, bleated like a spoiled brat who had just been told to share his toys;

“In one part of his speech, he said there were homeless people and people living in overcrowded conditions and they wanted to do something about that.  How does making it harder to provide rental homes to these people achieve it? Unbelievable.”

It may have escaped King’s somewhat narrow-attention, but homelessness and over-crowding has worsened during the time that his members have enjoyed spectacular tax-free gains. What were they doing in the last eight years?

He also compared businesses, shares, and farms with housing;

“No other investment is like that. If you do the same with a farm, with shares, with a business, all of those wouldn’t be affected, just rental properties – it’s just wrong.”

Generally speaking, people do not live in “shares”,  “businesses”, or farm paddocks (yet). People live in houses. That is the critical difference.

On top of which, astronomical rents are directly contributing to homelessness and over-crowding;

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High Auckland rents forcing people onto the streets - Sallies

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So to whine that, all of a sudden, Labour’s housing policies will “ make it harder to provide rental homes to these [homeless] people” is contemptible.

His members should be held to account for their part in our housing crisis. The sooner that a capital gains tax is introduced at the same rate as New Zealand’s company tax (28 cents in the dollar), the better.

Mr King’s absurd “pity me” comments have crossed the borderline into territory commonly known as;

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hypocrisy definition

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National discovers Problem & Solution!

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Last year, as stories of homelessness; over-crowding; fewer available  Housing NZ homes; and worsening housing affordability began to make headlines around the country,  National was grabbing money from a government department tasked with caring for the most vulnerable people in our society;

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Housing NZ to pay Crown $118m dividend

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In all, National has raked in over half a billion dollars from Housing NZ;

Housing NZ dividends under National

HNZ Annual Report 2009-10 – $132 million   (p86)

HNZ Annual Report 2010-11 – $71 million   (p66)

HNZ Annual Report 2011-12 – $68 million   (p57)

HNZ Annual Report 2012-13 – $77 million   (p47)

HNZ Annual Report 2013-14 – $90 million –  (p37)

HNZ Annual Report 2014-15 – $108 million –  (p33)

HNZ Statement of Performance Expectations 2015/16 – $118 million – (p12)

Total: $664 million (over seven years)

See more here: National’s blatant lies on Housing NZ dividends – The truth uncovered!

Labour took dividends as well, around a third of National’s figure. The difference between the two is that Labour builds State housing, whilst National continually flogs them off.

This amounts to looting a critical government organisation that is akin to thieving from a charity.

This year’s 2016 Budget indicated that Housing NZ would pay a  dividend  of $38 million  and $54 million next year, for 2017.

Twenty four hours after Andrew Little gave his speech to the country, Housing NZ suddenly announced no dividends would be paid for the next two years;

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RNZ - Housing NZ confirms it will not pay govt dividend

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Labour’s Grant Robertson offered his rationale for National’s policy U-Turn;

“The first we hear from National that they suddenly believe Housing New Zealand needs to retain that money to invest in state houses is the morning after an announcement by the Labour Party that Housing New Zealand will never be required [by Labour] to provide a dividend to the government.

This is not a coincidence, this is a panicked, desperate response from the government.

What we know is that National has extracted dividends from Housing New Zealand over recent years and it’s quite clear that National has seen Housing New Zealand as a cash cow in the past.”

Bill English refuted allegations that National was panicking over Labour’s housing announcement only 24 hours previously;

“It’s nothing to do with Labour and the Greens. This is a $20 billion entity – you don’t come up with capital plans for the next five years because Labour puts out a press release.”

He also denied that National was  looting Housing NZ;

“We don’t accept that taking the dividend is stealing from state housing, because the dividend is not the constraint on what gets built…

…If there was less dividend, we’d just put in more capital – it’s not driven by the availability of the cash.”

National takes money in the form of dividends and taxes  from Housing NZ – whilst non-government charities are tax-free? And he earnestly claims it is not “stealing”?!

English then issued the most ridiculous explanation ever heard, that the figures in this year’s May 26 Budget “appear to be based on older HNZ numbers dating from almost a year ago“.

Yeah, right, Bill.

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flying-pig-clipart-1

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Is the Finance Minister really expecting New Zealanders to believe that the government’s May 2016 budget was full of inaccurate figures?

What is really galling is that Bill English, Steven Joyce, and other National Ministers expect us – the public – to believe this rubbish. It is revealing just how stupid they think we are.

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Who is in charge anyway?!

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Whenever National implements unpopular legislative changes, they often point to Labour having carried out similar policies.

In 2014, National “borrowed” Labour’s policy by implementing free health-care for children under 13.

Last year, National raised benefits by $25 (to take effect this year) for people on welfare.

This year, having their ‘hand forced’ by Labour’s housing policy, the Nats have cancelled dividends from Housing NZ for the next two years.

National seems to be highly influence by Labour.

Which  raises the question; who is actually setting policy and governing the country? Because it appears we almost have a de facto Labour Government pulling the strings.

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A Cautionary Note for Labour

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On TVNZ’s Q+A on 10 July, Corin Dann quizzed Andrew Little on Labour’s policy toward Housing NZ tenants. Corin  Dann specifically asked Little about whether or not tenants should have state houses for life;

Corin Dann: You talk about state houses – an extra thousand state houses. Does Labour believe that someone should have a state house for life?

Andrew Little: I think we think when people are in circumstances where they can’t afford to buy their own home, can’t afford to rent, they’ve got to have a home. They’ve got to have a home, get their life on track, underway.

Corin Dann: Do they have it for life?

Andrew Little: If they’re at a point in their life where their circumstances have changed, and actually, they can afford to buy, my view is I would rather work with them to get them to buy that house so we could then release some funds to build the next state house.

Corin Dann: So you keen National’s policy? They don’t keep them for life?

Andrew Little: Well, I don’t agree with the policy that says we’ll target elderly people on fixed incomes in a state house and see if we can toss them out. That’s not a solution to anything. But what I would say is people who have gone into a state house early, got their lives sorted out,…

Corin Dann: They should move on if they can.

Andrew Little: …the circumstances are right, if we can sell that house to them, why wouldn’t we? And use the funds then to build the next state house for the next vulnerable person.

Selling State houses to tenants is text-book privatisation policy for National, and was a prime plank for the Bolger and  Shipley-led governments in the  1990s.

It is a dangerous road for a Labour government to go down.

Selling a state house to a tenant may seem a kindly gesture from a  benevolent left-wing government.

But eventually a National-led government will be elected back into power. Their track record on selling State houses is evident and they would have no hesitation in taking a Labour policy of selling State housing to tenants and expanding on it.

This is thin-edge-of-the-wedge, slippery-slope stuff.

This is mis-guided to the extreme, and will provide a future right-wing government a ready-made policy to act upon. And not in a nice way.

If Labour is serious in returning to it’s social democratic roots, it would do well to think carefully before embarking on such a naive policy.

Instead, it should consider the following;

[1] Transience

Transience is one of the greatest problems affecting low-income, poverty-stricken families. Moving from one house to another is debilitating to such families – especially for children.

A government report states that transience for children can have extreme, negative impact on  their learning;

Nearly 3,700 students were recognised as transient during the 2014 year. Māori students were more likely to be transient than students in other ethnic groups.

[…]

Students need stability in their schooling in order to experience continuity, belonging and support so that they stay interested and engaged in learning.

All schools face the constant challenge of ensuring that students feel they belong and are encouraged to participate at school. When students arrive at a school part-way through a term or school year, having been at another school with different routines, this challenge may become greater.

Students have better outcomes if they do not move school regularly. There is good evidence that student transience has a negative impact on student outcomes, both in New Zealand and overseas. Research suggests that students who move home or school frequently are more likely to underachieve in formal education when compared with students that have a more stable school life. A recent study found that school movement had an even stronger effect on educational success than residential movement.

There is also evidence that transience can have negative effects on student behaviour, and on short term social and health experience

Encouraging families to stay long-term in State housing not only creates a sense of community amongst tenants; stability for fragile, vulnerable families,  but assists in the long-term stability and education of children.

Not only is a state house “for-life” fair, it provides real, tangible, long-term benefits.

[2] Guaranteed Tenancy

Low-income, vulnerable families in State housing must be given guaranteed, protected security-of-tenure.

Currently, tenants are exposed to the winds-of-change whenever there is a change in government. Their tenure is at the pleasure of right-wing governments, and mass-evictions have been commonplace under John Key’s administration;

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state housing insecurity

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A progressive government must do all within it’s power to protect such vulnerable families. Otherwise what is the point of throwing out right-wing regimes when their ideologically-driven policies no longer palatable, and well past their Use-By date?

Tenancies must be secured. Either by the use of long-term contracts, enforceable in Courts of law, or by some other means such as entrenched legislation.

Labour-led governments come and go.

But tenancies for our most vulnerable must be protected from the whims of others.

[3] State Housing Protected

As well as protection for tenants of state housing, state houses themselves must be entrenched and protected from the rapaciousness of right-wing governments.

In modern, First World societies, the power of contract is supposedly sacrosanct.

It should not be beyond a progressive government to use some means of contract-law to safe-guard state housing. Once this is accomplished, it should make it near-impossible for a right-wing regime to wreak havoc with the lives of the poor.

Perhaps it is time to look at how we can make the concept of contract-law work in the favour of those who have least wealth to lose.

There is much more work to be done.

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References

Scoop media: Key – Speech to New Zealand Contractors Federation

theyworkforyou.co.nz: State Houses—Sale and Disposal

NZ History: Construction and sale of state houses, 1938-2002

Housing NZ Corporation: Rent, Buy or Own – overview (archived page)

Beehive: State houses available to buy from today

TV1 News: First home buyers set to be disappointed with Budget

Department of Building & Housing: Estimated building costs (archived page)

Dominion Post: Inequality report ignores tax cuts for rich – Goff

NZIER: Home

TVNZ News: NZ economic outlook grim until 2013 – NZIER (archived page)

Interest.co.nz: Paula Bennett announces plan to offer $5,000 to homeless Aucklanders

Hive News: Hive News Tuesday – Key blames ‘Dirty Politics’ for lack of state house sale debate

Reuters: NZ Prime Minister says central bank should get on with housing measures

Parliament Today: Housing NZ’s Woes Blamed on Labour

TV3 News: Housing blame game flares up in Parliament

NewstalkZB: Govt accused of blaming Auckland Council for its own failings on housing

Sharechat: Key blames Labour for barrier to foreign buyer ban

Youtube: Bill English Blames Greens for Housing Crisis

Otago Daily Times: Homelessness increasing in NZ

NZ Herald: Auckland has the fifth least-affordable houses in the world

Fairfax media: NZ home ownership at lowest level in more than 60 years

TV3 News: Key – No housing crisis, foreign buyers’ influence ‘minor’

Labour Party: Andrew Little’s Centenary policy speech

Treasury: Income from State Asset Sales as at May 2014

Fairfax media: Labour’s plan to tax property investors slammed as ‘attack’ on rental property providers

Radio NZ: High Auckland rents forcing people onto the streets – Sallies

IRD: Company Tax Rate

Radio NZ: Housing NZ to pay Crown $118m dividend

Radio NZ: Housing NZ confirms it will not pay govt dividend

Fairfax media: Bill English denies U-turn after Steven Joyce reveals Housing NZ won’t pay dividend

National Business Review:  Govt blames outdated Budget figures for Housing NZ dividend U-turn

Metro mag: Opinion – Is John Key the finest actor of his generation?

NZDoctor.co.nz: Free care for the under-13s features in growth Budget

Radio NZ: Welfare increases – what $25 buys you

TVNZ: Q+A – Corin Dann and Andrew Little (video)

TVNZ: Q+A – Corin Dann and Andrew Little (transcript)

Te Ara NZ Encyclopedia: Housing and government – Total Housing Stock

Education Counts: Transient students

Dominion Post: Housing policy will destabilise life for children

Fairfax media: State tenants face ‘high need’ review

NZ Herald: Elderly, disabled included in state house review

NZ Herald: State tenants to make way for workers

Previous related blogposts

Can we do it? Bloody oath we can!

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)

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

Another ‘Claytons’ Solution to our Housing Problem? When will NZers ever learn?

Government Minister sees history repeat – responsible for death

Housing Minister Paula Bennett continues National’s spin on rundown State Houses

Letter to the Editor – How many more children must die, Mr Key?!

National under attack – defaults to Deflection #1

National’s blatant lies on Housing NZ dividends – The truth uncovered!

State house sell-off in Tauranga unravelling?

Upper Hutt residents mobilise to fight State House sell-off

Park-up in Wellington – People speaking against the scourge of homelessness

National and the Reserve Bank – at War!

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wheel estate

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This blogpost was first published on The Daily Blog on 12 July 2016.

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= fs =

Foot in mouth award – Bill English, for his recent “Flat Earth” comment in Parliament

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idiot bill english

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I won’t be wanting to see any hint of arrogance creeping in… One of the big messages I’ll be wanting to give incoming ministers and the caucus is that it is incredibly important that National stays connected with our supporters and connected with the New Zealand public.John Key, 22 September 2014

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It appears that Finance Minister, Bill English did not get the memo from Dear Leader Key’s office:  “Dont get arrogant!”

On 29 June, near two years after Key’s warning, Bill English’s cockiness has landed him in deep, fetid water when he responded to a question from Labour’s Grant Robertson in Parliament;

Grant Robertson: “Does he agree with the statement of Pope Francis I that “Inequality is the root of social evil”,  given that inequality has risen in New Zealand on his watch, and is it not time he got back to confession?”

Hon Bill English: “ There is no evidence that inequality in New Zealand is increasing.

A day later, interviewed by an exasperated Guyon Espiner, English again denied that inequality was increasing in this country. English’s tortuous mental and verbal gymnastics to deny rising inequality was utterly unconvincing and judging by the tone of his own voice, he wasn’t convincing himself either;

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Porirua family can only afford biscuits - bill english - radio nz - inequality - poverty

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English’s assertion that inequality in New Zealand is not rising beggars belief, when nearly every metric used has come precisely to that conclusion.

From the Salvation Army, last year;

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income inequality - salvation army - child poverty

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The Children’s Commissioner reported on increasing child-poverty, rising by  45,000 over a year ago to now 305,000  children now live in poverty;

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A third of NZ children live in poverty - childrens commissioner

 

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Statistics NZ’s report on the problem was unequivocal – “Between 1988 and 2014, income inequality between households with high incomes and those with low incomes widened“;

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income inequality - statistics nz - poverty

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1988 – When Rogernomics began in earnest. What a surprise.

Interestingly,  income inequality fell slightly in 2004, when Working for Families was introduced by the Clark-led Labour Government. Working For Families was the same policy derided by then-Opposition Finance spokesperson, John Key, as “communism by stealth“.

From the last bastion of “radical marxism”, the OECD, came this damning report on rising inequality in New Zealand impacting on our economic growth;

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income inequality - oecd nz - poverty

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The Report stated that “rising inequality is estimated to have knocked more than 10 percentage points off [economic] growth in Mexico and New Zealand“.

And even our Dear Leader once admitted that New Zealand’s “underclasses” was growing;

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key admits underclass still growing - poverty - foodbanks - homelessness

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So, is everybody – including Bill English’s boss – wrong?!

Is Bill English the sole voice-in-the-wilderness trying to spread The Truth, whilst everybody else – including faraway OECD – is wrong?!

Or has he run foul of Dear Leader’s prescient warnings not to become arrogant?

Enjoining the poor to ignore hunger and simply “Let them eat cake” did not work out well for a certain person 223 years ago. Bill English may not lose his head over his obstinate refusal to see the world around him – but he may lose the election next year.

So for Bill English, on behalf of those who are low-paid; homeless; unable to afford to buy a home; unemployed; poor; and will be spending tonight in a car or an alleyway, I nominate Bill English for a Foot In The Mouth Award;

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Foot In Mouth Award

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References

NZ Herald: Election 2014 – Triumphant PM’s strict line with MPs – Don’t get arrogant

Parliament Today: Questions & Answers – June 29

Radio NZ: Porirua family can only afford biscuits (audio)

Fairfax Media: Child poverty progress ‘fails’, Salvation Army says

Radio NZ: A third of NZ children live in poverty

Statistics NZ: Income inequality

MSD: Future Directions – Working for Families

NZ Herald: National accuses Government of communism by stealth

OECD: Trends in Income Inequality and its impact on economic growth

NZ Herald: Key admits underclass still growing

Newstalk ZB: Demand for food banks, emergency housing much higher than before recession

Additional

Office of the Children’s Commissioner:

Previous related blogposts

When National is under attack – Deflect, deflect, deflect!

State house sell-off in Tauranga unravelling?

The Mendacities of Mr English – Fibbing from Finance Minister confirmed

Why is Paula Bennett media-shy all of a sudden?

Park-up in Wellington – People speaking against the scourge of homelessness

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national's free market solution to housing

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This blogpost was first published on The Daily Blog on 5 July 2016.

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= fs =

Park-up in Wellington – People speaking against the scourge of homelessness

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1949-state-house-in-taita

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Wellington, NZ, 26 June – It was a cold and stormy rainy night… No, really, it was – cold, wet, and miserable. The kind of night that a growing number of homeless people – including families –  are having to put up with regularly in once-egalitarian Aotearoa-New Zealand.

Several dozen cars and between 200 to 300 people – including families with children – braved the chill and intermittent drizzle to make a point about the growing scourge of homelessness in Aotearoa-New Zealand.

The event was organised through Facebook by Sam and Becs. The Wellington event followed a recent, similar “park up” in Auckland on 17 June. Whilst Green and Labour MPs participated in both events, no National MPs attended despite being invited.

The Wellington Cathedral car-park (and surrounding streets) quickly filled with vehicles;

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Each and every car  would contain people sleeping in them overnight. The signage around the area held a simple message;

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Frank Macskasy Frankly Speaking blog The Daily Blog fmacskasy.wordpress.com homelessness - park-up - wellington - wellington cathedral

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The family-symbols on the back of this vehicle indicated how many would be sleeping in it this night;

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Alexia, Claire, Ezra, and Ashton prepared to bunk down for the night. For the youngsters, it was a camping-out adventure. For their older family-members, this was about showing their disapproval of our housing crisis and homelessness.

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Alexia told this blogger that the Park-Up was the first time they had ever done anything of this nature. When asked why, she replied simply;

“There’s just too much homelessness in this country. It’s not good enough.”

She was clearly angered at the problem of homelessness facing many Kiwi families, saying;

“The government’s  not doing enough. Key isn’t doing shit about this problem.”

Alexia’s comments were echoed by one of the organisers, Shannon. She told this blogger that this event was the first political protest she had ever participated in and she had been motivated because her own brother was homeless.

Shannon said that the “Government… what they do is not enough.

A food-tent provided simple, hot food to keep stomachs full and warm for the night, and was cheerfully staffed by volunteers;

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This was one of two barbecues keeping a steady-stream of hot sausages available for the crowd;

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For young people (and some a bit older), face-painting  made the evening a fun-event;

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Veteran city-councillor, Helene Ritchie, with her friend, Peter, attended to add their support for the cause;

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Ms Ritchie derided National’s unwillingness to address the housing crisis, describing their stance as “ideological“.

The Brass Razoo Band – veterans of many previous community activities – kicked off the night’s musical entertainment;

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This family expressed their disgust at the realities of fellow New Zealanders homeless and having to sleep in their cars;

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Frank Macskasy Frankly Speaking blog The Daily Blog fmacskasy.wordpress.com homelessness - park-up - wellington - wellington cathedral

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Young people were in high attendance,  suggesting a consciousness-raising  of their generation  as deep social issues and problems were becoming more and more prominent and harder to ignore;

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Park-up in Wellington - homelessness - 25 June 2016 (79)

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While for the “Littlies”, it was more of who could catch-the-balloon;

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Frank Macskasy Frankly Speaking blog The Daily Blog fmacskasy.wordpress.com homelessness - park-up - wellington - wellington cathedral

 

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Sleeping rough the hard way, without a car for at least a modicum of shelter from the elements;

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Wellington Central MP and Spokesperson on Employment, Grant Robertson and Bishop Justin Duckworth, shared their thoughts on the issue problem of homelessness;

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Veteran activists for social justice, Warwick, Greg, and Geoff. The fellow behind them is another Wellington citizen who had turned up with a donation of food to help feed those Parking Up for the night;

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Frank Macskasy Frankly Speaking blog The Daily Blog fmacskasy.wordpress.com homelessness - park-up - wellington - wellington cathedral

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Sam and Becs – organisors of Park-Up Parliament – welcomed people to the event;

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Frank Macskasy Frankly Speaking blog The Daily Blog fmacskasy.wordpress.com homelessness - park-up - wellington - wellington cathedral

 

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Becs spoke first, saying,

“We had Paul Henry last week deride what we were doing, saying that what we were doing isn’t going to make a difference. But this does make a difference. The only thing that  has ever made a difference in history is people protesting in physical form like you are today. So here we are on the back-steps of the Beehive saying to our policy makers, that this is not good enough, that no child deserves to be sleeping in a car, without a home. To be sleeping in a garage or in a tent.”

Sam followed, relating the recent story of “TA”, who along with her family of seven, slept in their van after losing their rental accomodation and their father losing his job. The family had lived in their van for six months.

The story was poignant, and “TA” spoke from her p.o.v. as a child, finding it hard to do her homework in her van. “TA” said that whilst it was warm, with plenty of blankets, she had no private space to do her homework. She said it was stressful for her parents.

“TA” said it was her dream to have her own room, to share with her little sister, and to have books on a shelf beside her bed.

Sam concluded by saying;

“This is an 11 year year old girl who has been sleeping in her van for six months. This is not ok!”

Before Becs introduced the next speaker, she told the crowd;

“Let’s not forget the reason that we are here, and that is to demand that the government starts playing a larger role in the provision of housing for all New Zealanders. So that means that they actually have to put money into good, quality, affordable housing!”

Right Reverend Justin Duckworth was next who spoke that night;

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Right Reverend Duckworth spoke of “homelessness being at the heart of the Christian story” and said it was unacceptable that our fellow New Zealanders found themselves in the position of being homeless.

He led the crowd in prayer, saying,

“We pray for our leaders to do the right thing. We pray there will be a loud voice raised for those who are homeless.”

Next, Jason Clarke, from ‘MAD’, Making a Difference, said that he was part of  a group of concerned citizens in Wainuiomata who had decided to get together to work to alleviate deprivation in their community;

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Jason spoke of the needs of people in their community;

“The problem is really bad, and it’s quite upsetting to see, especially when we have to see our own tamariki having to sleep in their own cars. It’s a shocking thing to see…

… it’s a nationwide problem and everyone just has to get involved. We need to make ourselves heard. Not just because it’s winter and it’s cold now, but to get everybody off the streets and get them into their own homes.”

He thanked the organisers of Park Up,

“It’s quite inspiring to see these younger ones to get involved, and make a difference. It’s… just a blessing.”

Dr Philippa Howden-Chapman, a professor of public health at the University of Otago, spoke next;

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Dr Philippa Howden-Chapman said;

“When I was a teenager, parking-up was something you did on top of Mt Victoria, or at the Hutt River… So what is happening in New Zealand now? What has happened that they can’t find a secure, affordable house? Even when the parents are in the paid workforce. And most of those 42,000 [homeless] people that were mentioned, many of the parents of those children were actually in the paid workforce. So it’s partly a problem of wages being far too low.

What is happening when we hear and see daily that children actually can’t go to school and do as well as they want to? What is happening when a really ill child who should be kept particularly warm and dry in a house is sleeping in a van when she’s recieving chemotherapy? What is happening to our country?”

She questioned the priorities of this government;

“Why do we no longer expect that the government should step in? The state has power over it’s citizens so it has clear responsibilities. I think those are financial, moral, ethical. Good, affordable, housing is a public good. It is a key infrastructure which we need to enhance and maintain.

In my mind it is a thousand times more important than spending three billion dollars each year on roads.”

Dr Howden-Chapman suggested possible solutions;

“We do have choices. Given different instructions by the current government, Housing New Zealand could use it’s assets and land to work with Local Councils and Iwi to again increase the scale and pace of building houses, and set the standards for good, quality, affordable housing. The government should not be taxing and taking dividends from Housing New Zealand.

Housing people, currently living in cars and over-crowded housing, are much more important than the government trying to reduce it’s debt.

Life-choices are being made here, and it’s not the choices of the people in the cars.”

Dr  Howden-Chapman said the property developers were not interested in the lower-end of the housing market as there was more profit to be made building high-end housing, for greater profit. She put the case for Housing New Zealand to take up the challenge;

“Housing New Zealand has the land, it has the skills, it has the capacity to build in scale. We can build affordable housing, in scale. We’ve done it before and we can do it again.”

The following two speakers received a rapturous applause and cheers. Not because of who they were, but because they were appearing together. Green Party co-leader Metiria Turei and Labour’s Grant Robertson walked up to the microphone together;

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They appeared at ease; totally comfortable to be sharing the stage together. As Grant Robertson quipped with a grin, at the cheering and applause,

“Sonny and Cher!”

Metiria quipped back.

“Oh yeah, this is the MoU, changing the government in action!”

The crowd responded with laughter. One of the few lighter moments of the  night.

Metiria became serious again and accused the government of neglecting and degrading essential social services, forcing people to live in cars, garages, motels, and over-crowded housing.

“We as citizens are entitled to decent health, decent education, and decent, safe, affordable housing. How hard is it to make sure that a country as rich, and beautiful, and diverse as ours, can take care of all of our kids and make sure they are living in safe, healthy, affordable homes. It’s not hard at all. It’s [government] choices.”

She added,

“The choices aren’t with the families. Health issues happen to a family. Evictions happen to a family. Redundancy happen to a family. And it could happen to any of us, at any time. Maybe that’s why there’s this huge surge of compassion by New Zealanders, now.

This [homelessness] is not new, but it is so, so, much worse now. And so now is the time to work together; the politicians; with our community organisations that are doing such amazing work; with each other to build compassion, to build connection, that will make our country deliver for our kids. Because if we’re not here doing for our kids, why are we here at all?”

Grant Robertson followed, acknowledging Metiria, before addressing the crowd;

“Every single week, I meet and work with people who are homeless in the city. It happened yesterday. Someone came into my office in Willis Street, who’s been evicted. They’ve got nowhere to live. They’ve got health conditions that they need to manage. And what we find every single time we try and help we try and deal with this, we might have a success. And we’ve been seeing that at Te Puea Marae, the awesome job they’ve been doing there, and they have successes; they get people into homes.

That’s fantastic, and that is rewarding when you can do it, and it’s great to see when people get in [to homes].

But we’re only scratching the surface. We’re not dealing with the systemic problem. That we’re not as a country, and the current governmment is not… housing every New Zealander in a warm, dry, safe home…

…It should be the core of any decent society that we house every citizen.”

Grant said,

“To me that is non-negotiable.  We have  to make a fundamental change. We have to say we will end homelessness and we will only do that if we build houses!”

He added,

“We have a government today that is selling state houses! When forty-odd thousand people are homeless, the government is selling state houses. Their priorities are not just wrong, they are morally bankrupt! And we have to turn that around!”

Grant said that whilst Housing New Zealand had good people working for it, that every mandate to be a social housing provider had been stripped away, and Housing NZ acts as a [commercial] landlord.

“We need a proper social housing agency.”

He said the only way to effect change is to change the government, “It is the only way this will happen. Hashtag change the government.”

Grant finished by making a promise committing both Labour and the Greens to work together to abolish homelessness;

“So you’ve the commitment I know from Metiria and myself, and our Parties that this is our priority. Housing first. House everyone. We will start to solve the education and health issues that are around us.”

Major Campbell Roberts from the Salvation Army followed next;

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In March this year, the Salvation Army had rejected an offer by National to buy state houses. At the time, Major Roberts was damning of the proposal to shift Housing NZ stock onto community organisations such as the ‘Sallies’.

As he stood on the steps to Wellington Cathedral, Major Roberts was in no mood to be placatory to the current government.

“A few weeks ago, I arrived in my office in south Auckland and in the carpark was a car, and I got in a conversation with the young woman who was in the car with her baby. And found that they’d been sleeping there in the carpark overnight. Trying to seek some safe place in which they could sleep for the night.

That’s the situation which is appalling. In which all of us just think shouldn’t be happening in our country and that’s why we’re here tonight.

In the 1940s, in the building over here [points to Parliament, across the road], housing was seen as a priority. Something that actually we needed to something about. And politicians decided to do something about that. And the State house system was born. During the ’40s and ’50s, that was expanded upon by cheap loans; the ability to get in to home ownership, and a number of other things and that carried on.

In the 1980s, suddenly that sort of emphasis on housing started to disappear. And that which over the road [points to Parliament], which was happening since the 1940s, started to disappear… And politicians no longer said, ‘housing is the most important thing’.”

Major Roberts accused successive governments of taking their eyes off the ball.

“And so we have the situation that we now have in New Zealand where appalling circumstances are endured by families. It’s time for government, for politicians, to get back on the horse, and to say we need to do something and we need policies and we need action that will actually change the situation.”

He said,

[The] present government when it came into power said it was going to be involved in housing reform. And housing reform was needed. Certainly our system had run down. Certainly our system wasn’t delivering.

But what we’ve had the five or six years, in housing reform, is not delivering to those people who need it. It’s not delivering to low income people in New Zealand. It’s not delivering to families in New Zealand.”

Major Roberts accused current government policies of delivering “some fairly expensive housing” that some people were enjoying.  Then added,

“But affordable rentals, state rentals, and home ownership which can be afforded, is not being delivered.”

Major Roberts concluded,

“There are policies that can be put in place. Things can be done differently. It needs the will that, over the road [points to Parliament], they had in 1945 but that will is not here today. We need to keep the pressure so that will is recovered and that people are housed in New Zealand.”

The hosts next invited  Harriet Willis (L) and Bella (R)  to read out a poem written by their father;

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A Verse for Neoliberalism

I’m sleeping in the car with my dear old Ma and Pa
‘Coz we can’t afford a house or pot to piss in.
For the rents are all too high, sometimes I think we’re gonna die
For the food from last month’s cheque has all gone missin.

You see they say we’re all to blame, we’re just bludgers who just came
To lean upon the State for far too long.
We could have taken chances in the ladder – climbing dances
Then like the rich we would have become strong.

Yet my family is asleep, at the bottom of the heap,
In the back of Uncle Wally’s Holden Ute.
Some are drugged out in despair, some are just too sick to care,
For government interventions far too cute.

So wake up you investors, and supporting political jesters,
Who exacerbate the gulf ‘tween rich and poor.
All you property owning classes, please get up off your *sses,
And help us find real homes with roof and door.

—  RPW,  May 2016

The following speaker was a woman, Lou, who stood and with her voice shaking, explained to the crowd that she was  imminently about to become homeless herself. She shared details of her situation, which included surviving and escaping domestic violence  and asked if anyone could assist her and her two children;

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Lou’s situation was dire, having only one more night remaining in her current accomodation. Her rent had been increased by $200 to $700 per week, which was totally unaffordable to her on her meagre income.

As she made her way down the Cathedral steps, Grant Robertson approached her;

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Grant later advised this blogger that he had asked her to contact her local MP for Mana, Kris Faafoi, and to also get back in touch with him on Monday.

The band ‘The Hope Genetics‘ entertained the crowd until the “witching hour” drew close;

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Yes, even Every Man’s Dog turned up – reminding us that whether Human or Companion Animal, decent housing was basic to our needs;

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This blogger spent the night in a sedan vehicle. With plenty of old-style woollen blankets, it was not cold – but it was cramped. Four-door sedans are not meant for sleeping in and by the morning my back paid the price of sleeping in a semi-foetal position on the back-seat.

Furthermore,  the psychological aspect to sleeping in a car, out in the open became apparent. One cannot escape a feeling of being exposed and vulnerable. I slept fitfully; awoken by any slight noise outside. People in such circumstances would certainly endure varying degrees of sleep deprivation.

It is barely imaginable how several people could fit in one car, and live and sleep like this for weeks or months on end. It was not pleasant.

I would challenge any National MP to have the guts to spend a night in their car, out on the street. I suspect it would be a challenge not taken up by a single man or woman from the government benches.

Postscript

We like to describe ourselves as an egalitarian society, where fairness and equal access to opportunities are unshakeable social norms. They are the pretty little lies we tell ourselves. We are not those things. Whether it is income inequality, home ownership, or building state houses, we stopped making progress in the late 1980s or early 1990s. Even our treatment of criminals shows that we are not egalitarian, nor equal opportunity.

There is hope. We just need to add a little bit of empathy, love and civic duty to our blind faith in neoliberalism. We will be a better and fairer society for it.” – Shamubeel Eaqub, economist, 23 June 2016

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References

Radio NZ: Hundreds parkup overnight in homelessness protest

Facebook: Park-Up Parliament

Facebook: Parkupforhomes

NZ Herald: This is how the other half lives

NZ Herald: Salvation Army rejects buying state homes – ‘Housing NZ is making a mess’

Additional

Shamubeel Eaqub: Is NZ facing a crisis of conscience?

Shamubeel Eaqub: NZ egalitarian? That’s a pretty little lie

Previous related blogposts

Can we do it? Bloody oath we can!

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

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

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

The cupboard is bare, says Dear Leader

Government Minister sees history repeat – responsible for death

Housing Minister Paula Bennett continues National’s spin on rundown State Houses

Letter to the Editor – How many more children must die, Mr Key?!

National under attack – defaults to Deflection #1

National’s blatant lies on Housing NZ dividends – The truth uncovered!

Wellingtonians say; “Everyone deserves a home – no more homelessness!”

Letter to Radio NZ – Homelessness, Poverty, and the Final Solution

Letter to the editor – “Throwing money at the problem” of homelessness

Letter to the editor – homelessness, class eugenics, and middle class sensibilities

State house sell-off in Tauranga unravelling?

Upper Hutt residents mobilise to fight State House sell-off

Why is Paula Bennett media-shy all of a sudden?

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John Key can't hear a thing about homelessness

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This blogpost was first published on The Daily Blog on 28 June 2016.

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Letter to the editor – “Throwing money at the problem” of homelessness

23 June 2016 2 comments

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Frank Macskasy - letters to the editor - Frankly Speaking

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from: Frank Macskasy <fmacskasy@gmail.com>
to: Listener <letters@listener.co.nz>
date: Sun, Jun 19, 2016
subject: Letter to the Editor

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Letter to the editor
The Listener

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On TVNZ’s Q+A on 19 June, former National Party President, Michelle Boag referred to solving homelessness as “throwing money at the problem”.

Because as we all know, the homeless should just bunk down at the nearest Marae or in a ute parked up by some handy public toilets.

Meanwhile, National forked out a $30 million subsidy to Rio Tinto; $26 million for a flag referendum, and $11.5 million to a Saudi businessman for a farm in the middle of the Saudi desert. These are evidently not “throwing money at the problem”. They are ‘investments’.

In the next breath, Boag shed a couple of crocodile tears saying, “we want to be a compassionate society”.

Well, actually, many of us already are compassionate.

It’s Boag who seems to have trouble with the concept.

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Frank Macskasy

[address and phone number supplied]

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References

TVNZ: Q+A – The Panel

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