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Posts Tagged ‘Paula Bennett’

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

17 June 2016 4 comments

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1949-state-house-in-taita

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From December 2014…

A year and a half ago, Paula Bennett showed little hesitation in milking the opening of community housing for a photo-op*;

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paula bennett opens community housing

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Bennett was not shy in using tenants with disabilities as part of her “feel good” propaganda piece.

The Present…

Bennett appears to have lost her willingness to front up to the media and be photographed with the homeless who have been given shelter by the Te Puea Marae;

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Message of hope at Te Puea Marae

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According to John  Campbell, Bennett refused to appear on Radio NZ’s Checkpoint  for an interview.

Poverty in New Zealand has been put under the glare of  the media spotlight (at least, by Radio NZ) and National ministers have gone-to-ground. Their inaction on poverty has created a crisis in our society that is no longer possible to ignore.

When ministers  of an incumbent government are no longer willing to defend their policies and track-record, and refuse to be held to account by the media, then it is a clear sign they are in deep trouble.

No doubt Bennett’s taxpayer-funded spin-doctors have advised her to keep her head down; refuse all requests for interviews; and hope desperately that this latest crisis for National will blow over.

Unfortunately for Bennett and her parasitic, dogma-driven Tory cronies, they do not realise the tenacity and sense of fair-mindedness from one of New Zealand’s best investigative journalists: John Campbell.

This is what an inept, self-serving politician looks like when the bullshit is stripped away; their spin-doctors have no answers; and they stand revealed in the glare of public attention.

This is what speaking truth to power looks like.

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* Note: The identity of the tenant has been redacted to protect his privacy, and the title of the article removed for similar reasons. Readers are asked not to post  information or links which identify the tenants. – FM

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References

Radio NZ: Message of hope at Te Puea Marae

Previous related blogposts

Job Hunting, Bennett-style

Parata, Bennett, and Collins – what have they been up to?

Bennett & Borrows – where are the jobs?!?!

Paula Bennett on unemployment: spin baby, spin!

How Paula Bennett and National are wasting our taxdollars

Paula Bennett: one strike and she’s out.

Paula Bennett – massive *facepalm*

Paula Bennett shows NZ how to take responsibility

Was Paula Bennett ever drug tested?

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

Climate Change Minister Paula Bennett revealed

Homelessness, Poverty, and the Final Solution

State house sell-off in Tauranga unravelling?

Upper Hutt residents mobilise to fight State House sell-off

Recommended previous related blogpost

Hon. Paula Bennett, Minister of Hypocrisy

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homelessness in new zealand - tom scott - dominion post cartoon

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This blogpost was first published on The Daily Blog on 11 June 2016.

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State house sell-off in Tauranga unravelling?

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1949-state-house-in-taita

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State Houses – “Wrong place/wrong size”?

Last year (2015), National confirmed it’s intention to sell-off thousands of state houses to “community groups”;

Hundreds of state houses in Tauranga and Invercargill could be sold to independent providers in the first phase of the Government’s plans.

In January Prime Minister John Key announced that state house reforms would see up to 2000 state homes sold to “community housing providers” this year, as it cuts the number of state houses it owns by 8000 over three years.

Although the Government was marketing the process as “transfer” the houses would be sold to community groups, generally charity based providers. Because the houses would have to be kept as social housing rather than private sales, the houses were expected to be sold at a discount to the market value.

After nationwide consultation, Housing New Zealand Minister Bill English and Social Housing Minister Paula Bennett said that the first sales were likely to take place in Invercargill and Tauranga.

In a blogpost in November last year, I pointed out the oft-repeated phrase used by our esteemed dear Leader and various Ministers;

Various ministers, including our esteemed Dear Leader,  have indicated that up to “a third” of state houses are “in the wrong place or wrong size (or ‘type’).

The “wrong size/wrong place” claim is the argument used by National to advance a major sell-off of Housing NZ properties.

On 1 November, 2014, Social Housing Minister Paula Bennett said on TV3’s ‘The Nation’,

“It’s about being smart in what we’re doing. So you just look at us having the wrong houses, in the wrong place, of the wrong size..”

On 2 December, 2014, the Minister responsible for Housing NZ, Bill English expressed his agreement with the proposition of one third of Housing NZ homes being in the “wrong size/wrong place” ;

“Yes. As recently as just last month Housing New Zealand issued a press release that said: ‘around one third of our housing stock is in the wrong place, wrong configuration or is mismatched with future demand’.

[…]

… in fact, a third of them are the wrong size, in the wrong place, and in poor condition.”

On 28 January this year, John Key announced in his “state of the nation” speech;

 “Around a third of Housing New Zealand properties are in the wrong place, or are the wrong type to meet existing and future demand.”

After lodging an OIA request with relevant Ministers late last year information released under the  Act suggests that National’s oft-repeated claim that around “one third” ( or 22,000)  of  state houses are in the “wrong place and wrong size” was not wholly supported by Housing NZ’s own figures. As I reported last November;

Housing NZ currently  “manages 67,245 homes” (as at 30 June 2015). When Key, and other National ministers refer to “around a third of Housing NZ properties”, simple arithmetic translates that fraction into 22,190 homes being the “wrong size/wrong place” .

[…]

In a response eventually received on  29 October 2015,  information in the form of a  chart -“Stock reconciliation taking into account impaired properties as at 31 January 2013” – was attached;

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minister english oia response 29 october 2015 - HNZ housing stock - wrong place wrong size

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In two columns headed “Right Place, wrong home” and “Wrong Place“, the respective figures add up to 13,560. This constitutes a little over half of the “22,000” that is being bandied about by National.

Like much of National’s “facts”,  the numbers did not stack up.

Which led to the last question I put to the Minister; “If HNZ houses that are in the “wrong place” are sold/given away to community organisations – what will make those houses suddenly become in the “right place”?

Because if it’s in the “wrong place” when owned by Housing NZ – why would it suddenly be in the “right place” owned by someone else?

The Minister’s response was baffling. In his 29 October 2015 letter to me he said;

“The Government has no plans to offer Housing New Zealand properties that have been
identified as being in the ‘wrong place’ to community housing providers. In Tauranga and
Invercargill for example, the areas identified for initial potential transfers of social
housing properties from Housing New Zealand to community housing providers, MSD’s purchasing
intentions anticipate stable demand. Following a transfer, any new provider would receive
both the properties and a contract with MSD to continue to provide social housing.”

[See full text of letter here]

English’s response seemed to cast a distinction between State housing “in the wrong place/size” and properties to be sold/transferred to community organisations.

Yet, his statement above would appear to contradict a statement issued by English and Bennett earlier on 6 May last year, which is explained further below under the heading, “The Great Invercargill and Tauranga Sell-Off”.

See: State houses – “wrong place, wrong size”?

State Houses, “Wrong place/wrong size”? – Up-date

English’s responses to my questions were vague and offered little in the way of specific detail. In a follow-up letter to the Minister, I repeated two of my questions;

I refer you to two questions which you have not answered in my OIA request;

4. Where are they situated that are considered the “wrong place”?

5. How many areas have been designated “wrong places”?

His response arrived too late to be included in my November 2015 blogpost, but is still highly relevant to the growing housing crisis in this country. On 9 December 2015, English said;

“The analysis produced by Housing New Zealand  in 2013 and provided to you with my previous response [see table here – FM] identifies  the number of houses as being in the wrong place on a regional basis. No specific locations have been designated ‘wrong places’ and, based on this analysis, each region has some properties assessed as being in the wrong place. These will generally be in provincial  areas away from the main centres.”

[See full text of letter here]

In none of the Minister’s correspondence was he able to provide specifics as to where State houses were in the “wrong place”. The ‘best’ he could do was list five regions; Auckland East & South; Auckland North West & Central; South Island, Central North Island, and Lower North Island.

Surprisingly, Auckland was deemed to have  8,180 houses  that are supposedly “Right Place, wrong home”  and a further 420 that are in the “Wrong Place” – 8,600 in total.

However, the Minister’s data was contradicted by the 2014/15 Housing NZ Annual Report which confirmed the on-going high demand for housing in Auckland;

“Across the country we also have too many three-
bedroom properties, while demand has grown for smaller
one- or two-bedroom homes or for much bigger homes.
Demand for homes in the Auckland region is high and
more Housing New Zealand homes are needed.” (p22)

English did, however, point out that “these will generally be in provincial  areas away from the main centres“.

Even that has proven to be a mis-leading assertion from the Minister. Tauranga is certainly a “main centre” by most definitions, and the choice of that city would  prove to be embarrassing to National, as the next chapter below showed.

The Great Invercargill and Tauranga Sell-Off

As National began to roll  out it’s sale of State houses, Bill English specifically referred to State houses being sold in  Tauranga and Invercargill. On 6 May last year, Bennett and English released this statement;

“This is another important step to creating a more effective and efficient social housing sector with more housing providers supporting tenants and their needs.” – Housing New Zealand Minister Bill English.

As announced by the Prime Minister in January, the Government’s Social Housing Reform Programme includes plans to transfer 1000 – 2000 HNZC houses to registered CHPs over the next year.

“We’ve gone through a robust process to identify the first areas for potential transactions. Tauranga and Invercargill have been chosen because they have stable demand for social housing, and active community housing providers keen to consider the next steps. Providers in other regions are also interested.” – Social Housing Minister Paula Bennett

The same media statement referenced;

The Social Housing Reform Programme (SHRP) is designed to get more people in need into quality social housing – either through Housing New Zealand Corporation (HNZC) or registered Community Housing Providers (CHPs). The objectives of the Social Housing Reform Programme are to:

  • […]

  • Ensure social housing is the right design and size and is in the right places for people who need it.

English and Bennett continued to exploit the “wrong size/wrong place” spin that National was using to disguise the privatisation of State housing.

Bear in mind English’s statement in his 29 October 2015 letter to me, where he said;

“The Government has no plans to offer Housing New Zealand properties that have been
identified as being in the ‘wrong place’ to community housing providers. In Tauranga and
Invercargill for example, the areas identified for initial potential transfers of social
housing properties from Housing New Zealand to community housing providers, MSD’s purchasing
intentions anticipate stable demand. Following a transfer, any new provider would receive
both the properties and a contract with MSD to continue to provide social housing.”

Obviously the Ministers find it difficult to keep their “story” straight.

In March this year, potential buyers for State houses in Tauranga and Invercargill had been lined up;

Four potential buyers have made the final shortlist to buy over 1400 state houses being sold in Tauranga and Invercargill.

[…]

In Tauranga, Accessible Properties, Hapori Connect Tauranga, and Kaiana Community Housing Partners made the shortlist to take over 1124 properties or tenancies.

However, even as National’s English and Bennett were prepping State houses for sale, the country’s housing crisis began to be reported elsewhere throughout New Zealand.

Tauranga was one of them;

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Housing situation critical - Tauranga principal - radio nz

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Tauranga gripped by housing crisis - sunlive

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Housing crisis hits Tauranga, forcing families into garages and cars - TVNZ TV1 News

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Community leaders, social agencies call for urgency on 'housing crisis' - bay of plenty times

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People living in caravan parks while waiting for a rental - bay of plenty times

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Campsites for emergency housing debate - bay of plenty times

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People resorting to living in camping sites and caravan parks?

Is that what this country has come to after thirty years of neo-liberal “reforms”? To become a South Pacific version of America’s trailer-park “communities”?

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trailer park community USA

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If, by shuffling ownership of State houses from Housing NZ to “community groups”, National believes it will solve our housing crisis and growing homelessness – they are far more out of touch than I ever thought possible.

This is not just a stubborn pursuit of a free market dogma that has failed to meet basic social needs – this is pseudo-religious self-delusional behaviour from our elected representatives. English, Key, Bennett, Smith, et al, appear to be paralysed into inaction, like possums caught in the headlights of an approaching truck.

Nowhere is this better illustrated than Social Housing Minister Paula Bennett floundering around like a beached cetacean. She first denied that a housing crisis existed in New  Zealand on 20 May;

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No housing crisis in NZ - Paula Bennett - radio nz

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Five days later, she was willing to bribe homeless and State housing tenants up to $5,000 to quit Auckland, making  a sudden announcement that caught Finance Minister Bill English off-guard;

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Paula Bennett announces plan to offer $5,000 to homeless Aucklanders and state house tenants to leave Auckland

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I have said it before and will repeat my conclusions that National is incapable of resolving this crisis. Considerable State intervention is required, and that is anathema to a political party whose very DNA is based on the free market; reducing State involvement in commercial and social activities; and promoting private good over community benefit.

It will take a collective anger from New Zealanders to take notice of what is happening in their own society. At the moment, so many New Zealanders seem insulated from the  growing social problems that are worsening with each passing day.

As Shamubeel Eaqub said on Radio NZ’s Checkpoint, on 26 May, there is an absence of empathy amongst many New Zealanders – a moral-disconnect with the poor; the homeless; those who have been left behind after thirty years of failed neo-liberal theory.

Remarkably, Eaqub invoked the name of Michael Savage, when New Zealanders were capable of building and solving social ills. For an economist,  Eaqub has deep insight where we have arrived in the year 2016;

The only thing that’s missing now is aspiration and leadership,” he said.

Perhaps our economist friend has nailed the problem perfectly; 21st century New Zealand is not just suffering from economic poverty. There is a poverty much, much worse.

A poverty of spirit.

And that affects us all, regardless of wealth and income.

 

 

 

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References

Fairfax media: Invercargill and Tauranga chosen for first state house sales

TV3: The Nation – Social Housing Minister Paula Bennett

Parliament: 6. State Housing—Suitability of Housing Stock

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

Letter from Bill English, 9 December 2015

Housing NZ: 2014/15 Annual Report

Beehive.govt.nz: Next steps in social housing reform announced

Fairfax media: Invercargill state houses may survive sell-off as Government reveals short-list

Radio NZ: Housing situation critical – Tauranga principal

Sunlive: Tauranga gripped by housing crisis

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

Bay of Plenty Times: Community leaders, social agencies call for urgency on ‘housing crisis’

Bay of Plenty Times: People living in caravan parks while waiting for a rental

Bay of Plenty Times: Campsites for emergency housing debate

Radio NZ: No housing crisis in NZ – Paula Bennett

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

Radio NZ: Airport CEO, health leader & economist look at the Budget

Additional

Dominion Post: Housing MPs cost taxpayers more

Treasury: Social Housing Transactions

Other bloggers

The Daily Blog: Paula Bennett blindsides her own Finance Minister in desperate scramble to respond to housing crisis

The Standard: Newshub poll – Key’s government has failed on housing

The Standard: Bennett’s housing “announcement” is a re-announcement and a lie

Previous related blogposts

Can we do it? Bloody oath we can!

State houses – “wrong place, wrong size”?

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emmerson - homeless - National govt housing

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This blogpost was first published on The Daily Blog on 27 May 2016.

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Climate Change Minister Paula Bennett revealed

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70 percent pure NZ

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TVNZ’s Q+A on Sunday 24 April featured an interview with Climate Change Minister Paula Bennett. Her responses were further evidence that  National was  increasingly  unable (or unwilling) to cope with the growing threat of climate change.

Posing a series of surprisingly incisive questions and follow-ups, the ever-youthful-looking Jack Tame held Minister Bennett to account in a way that few other interviewers have done;

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paula bennett - climate change - Q+A - 24 april 2016

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Up untill now, Jack Tame’s presence in the US focused mainly on the theatrics of the  Hollywood entertainment industry or the equally-theatric Presidential primaries. They were for the most part light, breezy stories – even with the increasingly bizarre and somewhat menacing nature of the rise and rise of  Lex Luthor Donald Trump, as the potential Republican candidate.

However, on this occassion,   Tame’s Q+A interview was a masterful deconstruction of Minister Bennett’s waffle, revealing  how woefully unprepared for Tame’s skillful probing she really was.

As the thirteen minute segment progressed, it rapidly became apparent that, aside from platitudes and rhetoric,  Bennett had no real answers or  any actual, meaningful commitment to addressing New Zealand’s increasing emissions of  greenhouse-gas pollution of our atmosphere. It was as it she were still Social Welfare Minister, patiently explaining how National would be “helping” solo-mums with contraception, all the while sounding like an overly-concerned, benevolent, tough-loving  nana.

In fact, not since 2 May 2015 – when Corrections Minister Sam Lotu-Iiga was interviewed and demolished by seasoned interviewer, Lisa Owen, on TV3’s The Nation – has a government minister had their ineptitude so publicly paraded for the entire country to witness (if they so decided to tune in on a Sunday morning, at 9am.

Unfortunately, we should not be surprised that National is luke-warm on the looming crisis of climate change. Despite making very clear promises, National has broken one of it’s prime committments to the Emissions Trading Scheme – to eventually  include agriculture.

The time-line to this act of duplicity clearly illustrates National’s early promises and then reneging;

13 May 2007

In a speech by  then Opposition-leader, John Key;

In particular I’m going to speak about the biggest environmental challenge of our time: global climate change.

The National Party will ensure that New Zealand acts decisively to confront this challenge.

The scientific consensus is clear: human-induced climate change is real and it’s threatening the planet. There are some armchair sceptics out there, but I’m not one of them…

… National is committed to growing our economy. Confronting climate change will be a vital part of the policy mix for fuelling that growth…

… In the decades ahead, peoples’ perceptions around climate change will affect the brand image of New Zealand and its exports. New Zealand must take credible steps to reduce greenhouse gas emissions or risk becoming a trading pariah…

… National will have policies that reflect the fact that living on a diet of carbon will be increasingly bad – bad for the world and bad for our economy. We will have policy that encourages ‘climate friendly’ choices like windmills, hydro power and tree planting, and reduces the desire for ‘climate unfriendly’ behaviours, like burning coal…

… National will bring all Kiwis – industry, energy producers, farmers, mums and dads – closer to a shared and well-understood goal. We need to be united in our pursuit of a ’50 by 50′ target.

8 April 2010

Prime Minister John Key rejects demands  to amend the  Emissions Trading Scheme before it takes effect on the energy and transport sectors in July despite calls from business groups, farmers, and ACT.

Key tells reporters at the launch of the Global Research Alliance’s inaugural meeting on agricultural greenhouse gas emissions,

I’d say it’s unlikely it would be amended.”

6 June 2010

Climate Change Minister Nick Smith announces that whether or not agriculture comes into the emissions trading scheme  in 2015  will depend on technological advances and what other countries do.

9 November 2011

Environment Minister Nick Smith announces,

… It is not in New Zealand’s interests to include agricultural emissions in the ETS yet.“

2 July 2012

Then-Climate Change Minister, Tim Groser,  announces four amendments to the Emissions Trading Scheme;

  • Keeping the ‘one-for-two’ obligation in place until after this year. This means participants in the scheme will continue to surrender units for half the carbon they emit;
  • Maintaining the $25 ‘fixed-price option’ until at least 2015, which caps the price firms will face if carbon prices begin to rise internationally;
  • Introducing off-setting for pre-1990 forest land owners, and allocating the full second tranche of compensation where off-setting is not taken; and
  • Leaving agricultural emissions out of the ETS until at least 2015.

20 August 2012

National introduces  “Climate Change Response (Emissions Trading and Other Matters) Amendment Bill 2012”, which will remove agricultural emissions indefinitely, and will,

remove a specified entry date for surrender obligations on biological emissions from agriculture”.

National’s repudiation of it’s 2007 committment to include agriculture was complete. Despite a clear promise by our esteemed Dear Leader, agriculture was permanently omitted from the ETS.

As I pointed out in October 2012;

During National’s four years in office, they have broken several promises and the weakening of the ETS is simply one more on the list. It also further highlights  John Key’s ability to say one thing – whilst knowing full well that he has no intention of fulfilling committments, or will do completely the opposite.

An editorial in the Dominion Post, on 20 April, was no less scathing in it’s condemnation of National’s inertia;

The Government’s climate change policy has been a failure and will have to be rebuilt. There needs to be a fundamental change in the Emissions Trading Scheme, the subject this week of a damning report by the Gareth Morgan Foundation.  But other changes are also needed.

[…]

Bennett concedes, however, that the ETS was “not perfect”, and is now being reviewed. In fact the ETS has been a fiasco. What’s more, it continues to cast its dirty shadow. 

The Government has banned the purchase of  foreign credits, but it could still use the bad credits to meet its climate change targets up to 2020.

It must not do so. Instead, it needs to revamp the whole scheme, starting by ending the subsidies it gives to polluters such as the oil industry. The “one for two” scheme introduced in 2009 allows businesses to pay only half the cost of their greenhouse gas emissions.

It also needs to reverse its decision to keep agriculture, which produces half the country’s emissions, out of the ETS. National argues that making farming pay for its pollution would be unfair because there is no workable way yet of reducing animal emissions and our export industry should not be penalised. 

Farmers, however, are not exempt from the country’s global environmental duties, and will also respond to economic signals – even if this is a pledge to bring agriculture into the scheme within, say, five years

Jack Tame’s superb interview on 24 April merely confirms pathetic National’s track record on this issue and it now appears that  Minister Bennett will simply follow in the footsteps of her do-nothing-predecessors, Ministers Smith, Groser, et al.

Bennett certainly has no intention of adopting any of the bold, radical – but much-needed – policies as advocated by Professor Jim Skea, co-chairperson of the IPCC Working Group III, and interviewed by Radio NZ’s Kathryn Ryan on 27 April;

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How do we wean ourselves off fossil fuel - Radio NZ - Kathryn Ryan - Prof Jim Skea - IPCC

(alt. link)

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Listen to the two interviews and judge for yourself which person is seriously committed to combating climate change – and which person is a politician who has plenty of empty platitudes to offer, but little else.

In her previous role as Social Welfare Minister, Paula Bennett had much to say about welfare-fraud.

Her empty words on  addressing climate change is a fraud on a much grander, and ultimately vastly more destructive,  scale.

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Postscript1: Memo to TVNZ

Jame Tame’s interview with Minister Bennett reveals a young man with considerable journalistic skills. He should be given every opportunity to make full use of his under-utilised talents.

TVNZ (and TV3) should maximise the talents of their journalistic and production staff by shifting Q+A and The Nation to prime time viewing slots during the early evening.

Why hide excellence early on weekend mornings, where it is not easily appreciated and valued by the general public?

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Postscript2: Memo to Paula Bennett

Ms Bennett, your performance on 24 April was a dismal failure. You are either unwilling to seriously confront the challenges of climate change or, apparently, you are in way over your head on this issue.

Either way, you should resign your Climate Change portfolio. This job is too important to be left to your glib inanities.

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References

TVNZ: Q+A – Climate Change Paris Agreement signed

NZ Herald: NZ’s greenhouse gas emissions soar

Fairfax media: Beneficiary contraception plan ‘intrusive’

Scoop media: John Key Speech – Climate Change Target

NZ Herald: ETS changes ‘unlikely’ despite pleas

NBR: ETS may exclude agriculture – Climate Change Minister

Interest.co.nz: National would phase in ETS obligations for transport, electricity, industrial sectors; Will review Agriculture in 2014

Beehive.co.nz: Government announces ETS amendments

Parliament: Climate Change Response (Emissions Trading and Other Matters) Amendment Bill 2012

Dominion Post: Editorial – Big changes are needed in the Government’s climate change plan

Radio NZ: How do we wean ourselves off fossil fuel ? (alt. link) (audio)

Previous related blogposts

Johnny’s Report Card – National Standards Assessment y/e 2012 – environment

John Key – more pledges, more broken promises?

As predicted: National abandons climate-change responsibilities

National ditches environmental policies

ETS – National continues to fart around

Dear Leader – fibbing again?!

National – what else can possibly go wrong?!

National’s moving goalposts on climate change targets

“The Nation” reveals gobsmacking incompetence by Ministers English and Lotu-Iiga

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

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State houses – “wrong place, wrong size”?

6 November 2015 5 comments

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1949 state house in Taita

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Information released under the Official Information Act (OIA) suggests that National’s oft-repeated claim that around “one third” ( or 22,000)  of  state houses are in the “wrong place and wrong size” is not supported by Housing NZ’s own figures.

Various ministers, including our esteemed Dear Leader,  have indicated that up to “a third” of state houses are “in the wrong place or wrong size (or ‘type’)“.

The “wrong size/wrong place” claim is the argument being used by National to advance a major sell-off of Housing NZ properties.

On 1 November, 2014, Social Housing Minister Paula Bennett said on TV3’s ‘The Nation’,

“It’s about being smart in what we’re doing. So you just look at us having the wrong houses, in the wrong place, of the wrong size..”

On 2 December, 2014, the Minister responsible for Housing NZ, Bill English expressed his agreement with the proposition of one third of Housing NZ homes being in the “wrong size/wrong place” ;

“Yes. As recently as just last month Housing New Zealand issued a press release that said: ‘around one third of our housing stock is in the wrong place, wrong configuration or is mismatched with future demand’.

[…]

… in fact, a third of them are the wrong size, in the wrong place, and in poor condition.”

On 28 January this year, John Key announced in his “state of the nation” speech;

 “Around a third of Housing New Zealand properties are in the wrong place, or are the wrong type to meet existing and future demand.”

Housing NZ currently  “manages 67,245 homes” (as at 30 June 2015). When Key, and other National ministers refer to “around a third of Housing NZ properties”, simple arithmetic translates that fraction into 22,190 homes being the “wrong size/wrong place” .

On 17 September I lodged OIA requests to Ministers Nick Smith, Paula Bennet, and Bill English. Only English was prepared to answer – and even that took  42 days (30 working days) to eventuate after a reminder was emailed to the Minister’s office.

In a response eventually received on  29 October,  information in the form of a  chart -“Stock reconciliation taking into account impaired properties as at 31 January 2013” – was attached;

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minister english oia response 29 october 2015 - HNZ housing stock - wrong place wrong size

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In two columns headed “Right Place, wrong home” and “Wrong Place“, the respective figures add up to 13,560. This constitutes a little over half of the “22,000” that is being bandied about by National.

I  specifically asked Bill English;  “How many [state houses] are the “wrong size and in what manner are they the “wrong size“? “Do they have too many rooms; too few rooms?

English replied;

“In general terms, Housing New Zealand has a shortage of smaller two bedroom homes and
larger family homes and a surplus of three bedroom homes, with the exception of Auckland
where there is a demand for homes of all sizes. The type or configuration of particular
properties may also affect demand making them difficult to let.”

English totally ignored the direct question “How many [state houses] are the “wrong size“. He either does not know, or is unwilling to admit the number. “In General terms” is not a specific quantity.

Furthermore, English says that “Housing New Zealand has a shortage of smaller two bedroom homes and larger family homes and a surplus of three bedroom homes, with the exception of Auckland where there is a demand for homes of all sizes.”

Unsurprisingly, the 2014/15 Housing NZ Annual Report confirms the high demand for housing in Auckland;

“Across the country we also have too many three-
bedroom properties, while demand has grown for smaller
one- or two-bedroom homes or for much bigger homes.
Demand for homes in the Auckland region is high and
more Housing New Zealand homes are needed.” (p22)

Yet, the chart referred above (“Stock reconciliation taking into account impaired properties as at 31 January 2013“) states that there are 8,180 houses in the Auckland region that are supposedly “Right Place, wrong home”  and a further 420 that are in the “Wrong Place” – 8,600 in total.

This would appear to contradict the Minister’s assertion that “there is a demand for homes of all sizes” throughout Auckland.  Both cannot be right.

This contradiction is further compounded by the fact that, as of 30 June, there were 2,267 people on the waiting list in the Auckland City area;

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auckland city housing nz waiting list 30 june 2015.

Even where houses have been the wrong size, Housing NZ has been undertaking a programme to add extensions, or entire new, smaller dwellings on larger sections;

Overcrowding is an issue that affects many of our
tenants’ health and wellbeing, especially in Auckland,
where there is high demand for larger homes. Our
bedroom extensions programme is helping to meet
demand from the social housing register in Auckland
by converting three-bedroom homes into four- and
five-bedroom homes. Adding an extra one or two
bedrooms (and another bathroom where necessary)
means more of our tenants are living in appropriately
sized and healthier homes. During 2014/15 we
completed bedroom extensions to 247 homes.

Our existing land in Auckland will also house more small
families, couples and single people in need. We are
building new two-bedroom homes on Auckland sections
that are big enough to have another dwelling. During
2014/15 we built an additional 107 two-bedroom units
on existing Housing New Zealand sections, which also
included making improvements to the existing homes
where these were required.“(p23)

If we substract the 8,600 homes in the Auckland region, from Housing NZ’s original estimate of 13,560 (see above chart), this leaves 4,960 houses “wrong place/wrong size”.

Nearly five thousand homes supposedly in the “wrong place/wrong size” category in Auckland – and there are still 2,267 people on Housing NZ’s waiting list in Auckland City. How is that feasible?

I further enquired from English; “Could you please explain what the term “wrong size, in the wrong place” actually refers to? Where are they situated that are considered the “wrong place“?”

English replied;

In 2011 Housing NZ carried out an assessment of it’s future projected stock
requirements for the purpose of forward planning, based on its future use of intention of its
properties and informed by demand forecasting. This assessment was not intended to reflect
current demand at a point in time…

[..]

The analysis identifies some properties as being the wrong home, not specifically the wrong
size.”

It is worthwhile noting English’s comment that “Housing NZ carried out an assessment of it’s future projected stock  requirements for the purpose of forward planning,  [but] this assessment was not intended to reflect current demand at a point in time”.

The apparent purpose? According to English’s 29 October statement to me;

This relates to the number of bedrooms that a property has and also includes
properties that are wrongly configured to meet demand for social housing.

“Social housing” is National’s code for private providers.

The 2011 Housing NZ  assessment of it’s “future projected stock” appears to have been designed to meet the needs of “social housing”, aka private providers.

In respect to answering my question “Where are they situated that are considered the “wrong place”?”, English’s response was vague and lacked any informative value (as did many of his answers);

“A property being in the wrong place refers to the location of the property in relation
to demand. On a regional basis, there are areas of general low demand. However, some of
Housing New Zealand’s properties may be in locations with high concentrations of state
housing or existing social issues that may contribute to them being difficult to let or
result in a high turnover of tenants.”

There were no geographical locations; no cities or towns; no suburbs given. The statement in itself is meaningless twaddle with a vague reference to “some of  Housing New Zealand’s properties may be in locations with high concentrations of state housing or existing social issues”.

Where these “wrong places” might be is anyone’s guess.

My follow-up question – “How many areas have been designated “wrong places”?” – was ignored entirely.

In an effort to drill down and assess where houses might be in the “wrong place”, I asked English; “where houses are in a particular “wrong place”, how many people are on HNZ waiting lists in those same “wrong places”?

The purpose of this question was straight-forward. Where demand for housing is high in a given region, it seems inconceivable that any properties in that same region would be in the “wrong place”. Auckland being a prime example.

I wanted to know how many other regions had high numbers on their waiting lists – whilst also having houses in the “wrong place”.

According to the above chart, the following regions designated as having houses in the “wrong places” have the following numbers of houses attached to them;

Auckland: 420

South Island: 740

Central North Island: 870

Lower North Island: 1,740

“Community Group Housing”: 100

Total: 3,870

Because of the (deliberate?) vagueness of English’s response, we have no way of knowing where, for example, the South Island’s supposed 740 houses are located in the “wrong place”.

It is difficult to understand why the Minister could not be more precise.

If the “wrong size/wrong place” issue is real, then National must have hard data, with supporting numbers, identifying where state houses are located  in the “wrong place”. This information should be on-file; readily accessible; and easily released to interested parties.  Then again, my OIA lodgement to Minister English took 30 working days (including one “request” for an extension) to complete.

Perhaps such data does not exist.

According to Housing NZ itself, every district within it’s authority has people on their waiting list;

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Housing NZ waiting list - by region - by bedrooms needed

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Source

Source

There is no district recording zero-need.

I asked English; “What replacement houses are being built to replace those that are the “wrong size”, and how many rooms will they have? More? Less?” andWhere Housing NZ houses are in the “wrong place” – will new State houses be built in exactly the same place?”.

The Minister responded;

Housing New Zealand’s Asset Management Strategy provides for the redevelopment of its
land holdings in order to align the typology, location and size of its portfolio with demand.
As a result, it is building more two, four and five bedroom properties. Where there is low
demand, Housing New Zealand will look to sell surplus properties and reinvest the proceeds
into providing homes in areas of high demand.

As outlined above, Housing NZ has a current programme of adding bedrooms to existing three bedroomed houses, and, where the land is big enough, adding two bedroom houses onto an existing built-up section.

English’s reference to selling “surplus properties” is troubling, as we are still none-the-wiser where such properties exist. Especially when all Housing NZ districts have people on waiting lists.

As for English’s assertion that “Housing New Zealand will look to sell surplus properties and reinvest the proceeds  into providing homes in areas of high demand” – Paula Bennett was not willing to give that assurance on 1 November last year, speaking on Q+A.

Which leads on to the last question I put to the Minister; “If HNZ houses that are in the “wrong place” are sold/given away to community organisations – what will make those houses suddenly become in the “right place”?”

Because if it’s in the “wrong place” when owned by Housing NZ – why would it suddenly be in the “right place” owned by someone else?

The Minister’s response was baffling;

The Government has no plans to offer Housing New Zealand properties that have been
identified as being in the ‘wrong place’ to community housing providers. In Tauranga and
Invercargill for example, the areas identified for initial potential transfers of social
housing properties from Housing New Zealand to community housing providers, MSD’s purchasing
intentions anticipate stable demand. Following a transfer, any new provider would receive
both the properties and a contract with MSD to continue to provide social housing.”

That statement appears to be at complete variance with this undated Beehive document, headed “Social Housing Reform Programme – Media Qs and As“;

SOCIAL HOUSING REFORM PROGRAMME – Media Qs and As

“Around one third of the $18.7 billion Housing New Zealand portfolio is in
the wrong place or of the wrong type to meet this need.”

[…]

“To help community housing providers grow, there will be sales of
Housing New Zealand properties and we will involve these providers
in the redevelopment of Crown land…”

[…]

“Details will be determined after national engagement, including
with community housing providers and iwi,over coming months.
Providing we can achieve better services for tenants and fair
and reasonable value for taxpayers, we will look to sell
between 1,000 and 2,000 Housing New Zealand properties over
the next year.”

[…]

“15. Will properties being sold be tenanted, and if so what
happens to the tenants?

In most cases where houses transfer to a community housing
provider, the properties will have tenants. The new owners
will continue providing social housing with the income-
related rent subsidy.”

[…]

“Look at selling between 1,000 and 2,000 Housing New Zealand
properties for continued use as social housing, run by approved
community housing providers. These providers might buy
properties on their own or go into partnership with other
organisations lending them money, contributing equity, or
providing other services.”

The document specifically refers to the sale of state housing, that are “the wrong place or of the wrong type“,  to community service providers.

And in Parliament, on 24 March, Bill English himself made reference to the sale of “wrong place” Housing NZ properties to Community providers;

“In the first place, Housing New Zealand has an ongoing sales
policy, and often it is selling houses that we do not need or
that are in the wrong place, or some of them have just become
unsuitable to be lived in and cannot be upgraded at reasonable
cost. In respect of the transactions that are coming up over
the next 6 months or so, there is a process of testing what
the real values of those houses are. For instance, many
community providers believe those houses are not up to date
on maintenance, and therefore are overvalued when they are
valued as if they can be sold for the best price on the day
in the location that they are in. Those are exactly the things
we are having discussions about over the next few months.”

[…]

“Neither property developers nor community housing providers
are compelled to buy houses off the Government. If they do
not want to do that—if they do not want to manage the tenants
or own the stock, which may be the wrong size in the wrong
place—then they certainly do not have to do that.”

Which creates doubt over English’s assertion that  “the Government has no plans to offer Housing New Zealand properties that have been
identified as being in the ‘wrong place’ to community housing providers”.

So if Housing NZ properties that are in the “wrong place” are sold to community housing providers – as confirmed by Minister English on at least two occassions – what will transform those “wrong place” houses into “right place” houses?

Very little of National’s “wrong size/wrong place” proposition makes sense – unless viewed through the lens of raising revenue by way of partial asset-sales.

That is the only thing that makes any sense of this issue.

The only reason that the “wrong size/wrong place” meme has worked for National thus far is that very few (if anyone) has delved behind the phrase to check it’s validity.

Perhaps it is time this issue was scrutinised more carefully?

The apparent fudging of Bill English’s response to my OIA request, in itself, speaks volumes.

Postscript

On 29 October, I wrote to Bill English expressing my dissatisfaction with his response to my OIA lodgement;

from: Frank Macskasy <fmacskasy@gmail.com>
to: “B English (MIN)” <B.English@ministers.govt.nz>
date: Thu, Oct 29, 2015 at 8:01 PM
subject: Re: State houses – wrong place, wrong size

 

Thank you for your letter dated 29 October.

I refer you to two questions which you have not answered in my OIA request;

4. Where are they situated that are considered the “wrong place”?

5. How many areas have been designated “wrong places”?

Please advise if you do not intend to answer those questions, and I will lodge a formal complaint with the Office of the OImbudsman.

Regards,

-Frank Macskasy

Appendix1

In 2014/15 Housing NZ “returned” $321 million to the government’s Consolidated Fund. This comprised of $118 million in tax; $96 million in interest costs, and $107 million as a dividend. (2014/15 Annual Report, p24)

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References

TV3: The Nation – Social Housing Minister Paula Bennett

Parliament: 6. State Housing—Suitability of Housing Stock

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

Housing NZ: 2014/15 Annual Report

Housing NZ: Register by priority and Auckland local board – 30 June 2015

Beehive.govt.nz: Social Housing Reform Programme – Media Qs and As

Parliament Today: Social Housing Reform — Objectives

Other Blogs

The Jackal: More homelessness under National

Previous related blogposts

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

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

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

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)

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Housing NZ - state housing - over crowding

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This blogpost was first published on The Daily Blog on 1 November 2015.

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= fs =

On ‘The Nation’ – Anne Tolley Revealed

2 October 2015 5 comments

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children-crossing-triangle-sign

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On past occassion, I have been critical of ‘The Nation‘ for not making greater use of facts and data when confronting National ministers. Without cold, hard facts and stats, slippery Ministers like Steven Joyce can find wiggle-room to avoid straight answers and indulge in wild flights of fantasy-spin.

But when the team at ‘The Nation‘ get it right, they do it well, and Ministers are laid bare for the public to see, hear, and assess for themselves.

Cases-in-point, the 2 May interview with Corrections Minister, Sam  Lotu-Iiga, and the more recent (26 September) interview with Social Development Minister, Anne Tolley;

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The Nation - Interview - Social Development Minister Anne Tolley

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Both interviews showed Ministers out of their depths, and grappling with critical problems that apparently have “snuck up” on them – though the rest of the country had long been aware that not all was well in the Land of the Long White Cloud (and possible Red Peak).

Recent “revelations” of massive problems for children in State-care are only confirmation of what many in the sector already knew. According to Tolley’s own speech to the Fostering Kids New Zealand Conference  on 24 September;

By the time children with a care placement who were born in the 12 months to Jun 1991 had reached the age of 21:

Almost 90 per cent were on a benefit.

Over 25 per cent were on a benefit with a child.

Almost 80 per cent did not have NCEA Level 2.

More than 30 per cent had a youth justice referral by the age of 18.

Almost 20 per cent had had a custodial sentence.

Almost 40 per cent had a community sentence.

Overall, six out of every ten children in care are Māori children.

[…]

64 per cent of the 61,000 children notified to CYF in 2014 had a previous notification.

In 2013, children who had been removed from home were on average 8 years old and many of these children had been involved with the system since 2 or 3 years of age.

[…]

Seven year-old children should not have eight different home placements.

A study of those in care in 2010 showed that 23 per cent of children who exited care and returned to their biological parents were subject to neglect or physical, emotional or sexual re-abuse within 18 months. Ten per cent of those who returned to kin or whānau were re-abused, while re-abuse rates for those who exited into non-kin and non-whānau placements was one per cent.

It has taken seven years for a National minister to come to understand this? Where have they been all this time – playing golf on Planet Key?

But not only has  this government ignored this crisis in supporting young people in State care – but they have been criminally guilty of making matters worse by job cuts and destabilisation by constant re-organisation of  MSD (Ministry of Social Development);

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Job cuts for MSD

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Then Social Development Minister, Paula Bennett, was adamant that there would be more frontline social workers, despite the massive number of redundancies. Her mantra at the time was;

”I can absolutely assure them that the concentration is on frontline staff, on social workers that are working with those people that need it most, and that’s where this Government is putting their priorities.”

Take note that in the “re-structuring”  in 2009, the job cuts included “a team of 18 child abuse education social workers“.  In effect,  skilled professionals working on behalf of children suffering abuse were sacked.

Only the Minister of Finance trying to balance his books, and those who perpetrate child abuse on small bodies, could possibly have been delighted at that announcement.

To deflect criticism from the growing problem of  child poverty and New Zealand’s “under-class” (which, in  October 2011, even Key was forced to admit was rising), Bennett resisted demands to assess just how bad the problem really was;

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Combating poverty more important than measuring it - Paula Bennett - MSD

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No measurement; no way of telling how bad it is. Very clever, Ms Bennett.

But worse was to come, as National slashed the state sector to make up for revenue lost through two tax cuts and the recessionary effects of the Global Financial Crisis;

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MSD restructure lacks transparency

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98 MSD staff face the axe - union

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This time, the person over-seeing on-going job-losses and re-structuring was the current Social Development Minister, Anne Tolley. This time, the cuts were given a new euphemism; “re-alignment”.

Despite Bennett’s reassurances in June 2009  that there would be a “concentration […] on frontline staff, on social workers that are working with those people that need it most” – six years later the cutting of back-room support staff resulted in inevitable (and predictable) consequences. As Tolley herself was forced to admit on ‘The Nation‘;

“Well, there’s 3000-odd staff, but only 25% of them are actually working with children. And of that 25%, they’re only spending 15% of their time actually with children.”

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twitter - msd job cuts - anne tolley - the nation

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At that point, Lisa Owen asked Minister Tolley the question;

“So are you telling me that we need more back-room staff to allow those people to get on to the front line and deal with the kids?”

Tolley’s reply was pure gobbledegook;

“What we need is a system that is designed to look after those children when they first come to our attention, we need good interventions with them and their families, and we need to free up the front-line social workers to do the work they come in every day to do which is to work with children, not a system that’s built on layers and layers of risk management and bureaucracy and administration, which is what we’ve got now.”

The reason it is risable gobbledegook is that after hundreds of job losses – of mostly so-called “back room staff” one assumes – and restructurings, there cannot be too many “layers and layers of risk management and bureaucracy and administration” left in MSD.

Lisa Owen pushed the Minister further;

“…But some evidence that was provided last year was the case-load review, which said that you were 350 social workers short. So can we expect more social workers?”

When the Minister offered vague assurances that “we may well” expect more social workers, Ms Owen was blunt;

“But ‘may well’ is not a definitive answer, is it, Minister? So yes or no? Will we get more?”

Tolley’s response was anything but reassuring;

“I don’t know, because the final system proposal will come to me in December, so I’m not going to pre-empt what the panel’s coming up with. What they’ve done in this interim report is give us the building blocks…”

Listening to the Minister was not only far from reassuring, but left a sense of unease.

Our esteemed Dear Leader, John Key, has already said that “outsourcing” to private providers for MSD services is possible;

“Child Youth and Family does outsource to the private sector already some contracts, and I think last year $81 million of business went to private sector contractors, so I can’t get up and say there is no involvement with the private sector, because there already is that.

I don’t think we’re seriously talking about the private sector taking control of all the children, but if there is some small function they could do, maybe, I’d have to see what that is.”

“Some small function”?

What is Key referring to – delivery of afternoon tea and biscuits to CYF staff?

Or, as more likely, would “some small function” involve Serco – already in deep trouble over it’s incompetence over running of Mt Eden prison?

This is a possibility that Tolley herself touted as a possibility on TVNZ’s ‘Q+A‘, as recently as June this year;

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Tolley Serco could run social services - MSD - CYF

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On 31 August,  CEO of the Association of Social Workers, Lucy Sandford-Reed,was reported on Radio NZ as saying  she believed call-centre operations might be outsourced;

“That really creates an opportunity for further fragmentation of the service delivery and could potentially create the opportunity for failure. And there has been a sense that a organisation like Serco could be looking at picking up those contracts.”

Tolley was adamant on ‘The Nation‘ that there would be no outsourcing of MSD’s front-line services. She told Lisa Owen to her face;

“Look, I- Let’s put it to rest – this is a state responsibility. There’s no talk within Government at all of outsourcing that responsibility.”

However, only two days earlier (24 September), it was reported that Serco had indeed been ‘sniffing’ around CYF facilities in Auckland;

CYF sites visited by Serco – Tolley

Thursday 24 Sep 2015 4:30 p.m.

Serco case managers have visited several Child, Youth and Family facilities in Auckland, Social Development Minister Anne Tolley has confirmed.

She’s previously denied knowledge of such visits, and told Parliament today she had been given incorrect advice by her ministry.

“I apologise for giving an incorrect answer (to previous questions)… I’m disappointed that I got incorrect information,” she said.

Opposition MPs suspect the visits were connected with the possibility of some CYF services being contracted out to Serco.

The question that begs to be asked is; why has National drawn attention to the (supposed) “failings” of CYF/MSD? Why was Tolley so eager to receive a report so scathing of her own department, as she stated in her 27 August press statement;

“I welcome the release of this report, which makes for grim reading for those involved in child protection, and have met with the Commissioner to discuss his findings.”

Usually, this is a government whose ministers are desperate only to present “good news” stories. They are quick to dismiss, minimise, or deride any criticism that does not fit with their “good management” narrative. Blaming the previous Labour government has become the #1 Default position of National ministers.

The only possible rationale why Tolley has commissioned a report into MSD/CYF – where no public or media pressure had demanded one – is that Paula Rebstock’s highly critical findings of MSD/CYF were pre-determined.

As Chris Trotter wrote in his analysis of Rebstock’s report on 2 April;

“The Rebstocks of this world are spared the close-up consequences of their recommendations. They are experts at reading between the lines of their terms of reference to discover exactly what it is that their commissioning ministers are expecting from them – and delivering it. So it was with Paula Bennett’s welfare review, and so it will be with Anne Tolley’s review of Child Youth and Family (CYF).

Once again in the lead role, Ms Rebstock will not have to work too hard to decode the meaning of Ms Tolley’s comment that: “CYF has drafted its own internal modernisation strategy and while it is a good starting point, it doesn’t go far enough”.”

Without doubt, Rebstock’s eventual (and predictable?) report into MSD/CYF was highly critical of that organisation.

Key has publicly disclosed that he is not averse to privatisation (aka, “outsourcing”) aspects of MSD/CYF’s services.

Despite Tolley’s denials, Serco has shown interest in CYF facilities.

Which leads to the inescapable conclusion that the Rebstock report; the willingness of Ministers to front up to the media to candidly admit to MSD/CYF’s shortcomings; is setting up a Problem demanding a Solution.

That “Solution” is privatisation of services.

Which perhaps is what Tolley was referring to in her 24 September speech;

“While the new operational model is being developed, a feasibility study of an investment approach to improving outcomes for vulnerable children is being commissioned by MSD on behalf of the panel, and the findings will inform the Panel’s December report.”

Investment approach”?

As in business investment.

This explains  Tolley’s rejection of Lisa Owen’s suggestion of paying caregivers more money;

“Well, I think you’ve always got to be very careful that you’re not setting up a professional caregiving regime. And when you talk to people who are fostering, most of them don’t do it for the money.”

Indeed, “people who are fostering, most of them don’t do it for the money” – but it sure helps pay the bills, especially for professional services for some very damaged children.

No wonder Tolley was vague on whether more money or social workers would be provided to MSD/CYF, in her replies to Lisa Owen. This was never about increasing resources to the Ministry or caregivers.

This is about a private enterprise “solution” to a National government “problem”.

The Rebstock Report is simply the means to sell that “solution” to the public and media.

Machiavellian does not begin to cover this mad agenda.

 

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References

TV3: The Nation – Interview – National’s Chief Strategist Steven Joyce

Beehive.govt.nz: Speech to Fostering Kids New Zealand Conference

Fairfax media: Job cuts for MSD

NZ Herald: Key admits underclass still growing

Scoop media: Combating poverty more important than measuring it

Radio NZ: MSD restructure ‘lacks transparency’

Fairfax media: 98 MSD staff face the axe – union

Twitter: Frank Macskasy to The Nation

Radio NZ: Key – More CYF private sector involvement possible

TV3 News: Tolley – Serco could run social services

TV3 News: CYF sites visited by Serco – Tolley

Beehive.govt.nz: Minister welcomes State of Care report

Additional

MSD: Redesigning the Welfare State in New Zealand: Problems, Policies and Prospects (1999)

Other Blog posts

The Daily Blog: Fixing CYFs – Paula Rebstock is asked to “rescue” another state agency

The Daily Blog: Why The State Needs To Support Young People Until They’re 21

Previous related blogposts

WINZ, waste, and wonky numbers – *up-date*

Bill English: When numbers don’t fit, or just jump around

The law as a plaything

Random Thoughts on Random Things #3

John Key’s government – death by two cuts

The cupboard is bare, says Dear Leader

Government Minister sees history repeat – responsible for death

“I don’t know the details of that particular family” – Social Development Minister Anne Tolley

Polls and pundits – A facepalm moment

“The Nation” reveals gobsmacking incompetence by Ministers English and Lotu-Iiga

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Phil-Disley-30102010-005

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This blogpost was first published on The Daily Blog on 27 September 2015.

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Four Ways to Madness, Kiwi-style – a day in our media

22 September 2015 6 comments

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crazy-promises

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September 15 – A day in our history when four items of news were reported in our media, and few people seemed aware of  the new depths of craziness that our country has sunk to.

It was said that the old Soviet system was riddled with contradictions that, by 1991, led to it’s demise.

That charge could just as easily be levelled against the neo-liberal system, where the pursuit of the almighty dollar/euro/yen/etc has resulted in levels of crazy contradictions that are becoming more apparent with each passing day, and  increasingly difficult to sustain and justify by it’s proponents.

Those contradictions, I suspect, were part of the reason of Jeremy Corbyn’s ascension in the British Labour Party, and left-wing governments gaining ground in France, Greece, and elsewhere.

New Zealand has often been behind the times, so it may take a wee while longer for voters to fully comprehend that the neo-liberal system is a fraud, with only a few benefitting.

Four headlines. Four more examples of “free” market, corporate quackery. Four more nails in the neo-liberal coffin.

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Nail #1

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Silver Fern chair sees no problem with Chinese buy-in - radio nz - Bright Foods - China - state owned enterprise

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The purchaser of Silver Fern is Shanghai Making Aquarius Group. Shanghai Maling Aquarius Group will be purchasing a 50% shareholding of Silver Fern, paying $261 million for the buy-in.

Shanghai Maling Aquarius Group is one of four subsidiaries of Bright Foods, a State Owned Enterprise, 100% owned by the Chinese government (though registered in the Cayman Islands – no doubt for tax-avoidance purposes). Bright Foods owns 39.12% (as of September 2015) of Synlait Milk Ltd, which it bought into five years ago.

At $261 million, the purchase price is still a small fraction of the estimated US$4 trillion it has “in foreign currency reserves, which it is determined to invest overseas to earn a profit and exert its influence“, according to a recent report in the New York Times.

As usual, our National-led government has turned a blind eye to yet another buy-up of one of New Zealand’s primary industry producers.

Yet, with a 50% holding, that almost guarantees that half of Silver Fern’s profits will end up going back to Bright Foods and the Chinese government.

Another report states that investors from China are set to invest US$10.9 billion in our real estate, according to said Andrew Taylor, Juwai.com’s co-chief executive;

“Juwai.com projects that the pilot program will enable US$11 billion of new Chinese money to flow into New Zealand’s real estate market. That’s based on wealthy Chinese investing 10 per cent of their assets into international property, including commercial. It’s also based on NZ getting about 3.3 per cent of that property-specific investment, as it has in the past.

The question is; why is it permissable for a  foreign State Owned Enterprise to buy up New Zealand companies – whilst our own government is busy shedding ownership of Genesis Energy, Meridian, Mighty River Power, Air New Zealand, land owned by Landcorp, and houses owned by Housing NZ?

Why does National think that State ownership by the NZ Government in our productive industries is undesirable – but State ownership by foreign nations is perfectly acceptable?

This appears to be a major flaw in  neo-liberal ideology and one that National has yet to confront head-on.

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Nail #2

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Radio NZ - Politicians fling flag barbs - flag referendum - john key - red peak - andrew little

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It has been fairly obvious that the flag referendum has been foisted upon New Zealand for two reasons,

  1. A distraction to deflect public and media attention away from the deepening economic downturn that has every indication of turning into another full-blown recession,
  2. A personal vanity-project for John Key, because eradicating child poverty; addressing the Auckland housing crisis; or making meaningful inroads into New Zealand’s worsening greenhouse gas emissions is not the kind of legacy our esteemed Dear Leader thinks is important enough to warrant his attention (he is a busy man).

On 14 September, John Key surprised many people by “reaching out” to the NZ Labour Party to assist National to include the so-called “red peak” flag in  the up-coming referendum. As Radio NZ reported Key’s comments;

“If I drop out one of them, if I drop out one particular flag, there will be a group that will say that was wrong because I was going to vote for that – there will be another group that will say ‘I just didn’t realise this was a process that could be influenced through social campaign’.

If you look at Labour, they’ve been very disingenuous throughout the whole process so if I’ve got to go back to Parliament and change the law to have five, are you really telling me they wouldn’t then run a campaign that said I’m wasting Parliament’s time because I’m now going back to it?

I mean, these people can play games forever.

Well, they would need to go back and change their position on the flag process, instead of lying to the public and saying they’re opposed to this when their policy is actually to change the flag.

If they want to treat the whole process with respect, they’re welcome to come and have a discussion with me, but that is not the way they’ve played this thing.

And if Labour want to publicly come out and support the process and the change, that it’s an appropriate thing to do and argue that it’s an appropriate thing to do… then we might, but that hasn’t been what they’ve done so far.”

There seemed an element of desperation in Key’s plaintive demand for Labour’s support on the issue.

Which is hardly surprising, as support for the “red peak” option had surpassed 50,000 in an on-line petition – a number equivalent to the 50,000 who marched through Auckland in May 2010, opposing National’s proposed mining in protected Schedule 4 DoC conservation land and marine reserves. The sheer number forced National to back down, and on 20 July 2010, then-Energy Minister Gerry Brownlee announced;

“At the time the discussion document was released, I made it clear that it was a discussion. There were no preconceived positions from the Government. We have no intention of mining national parks.”

The question though is, who is playing games here?

Andrew Little explained;

“The Prime Minister can put Red Peak on the ballot paper without any party political support. He does it by Order in Council – he does not need other parties’ support for that.”

A brief explanation on what is an Order In Council;

Order in Council
A type of Legislative Instrument that is made by the Executive Council presided over by the Governor-General. Most Legislative Instruments are made by way of Order in Council. For more information about the Executive Council, see the Department of the Prime Minister and Cabinet website. To find Orders in Council on this website, search or browse under Legislative Instruments.

Source: Parliament – Legislation – Glossary

Executive Council

The Executive Council is the highest formal instrument of government. It is the part of the executive branch of government that carries out formal acts of government.

By convention, the Executive Council comprises all Ministers of the Crown, whether those Ministers are inside or outside Cabinet. The Governor-General presides over, but is not a member of, the Executive Council. When a new Cabinet is sworn in, Ministers are first appointed as Executive Councillors and then receive warrants for their respective Ministerial portfolios.

The principal function of the Executive Council is to advise the Governor-General to make Orders in Council that are required to give effect to the Government’s decisions. Apart from Acts of parliament, Orders in Council are the main method by which the government implements decisions that need legal force. The Executive Council also meets from time to time to carry out formal acts of state.

Meetings

The Executive Council generally meets every Monday. At the meetings, the Executive Council gives formal advice to the Governor-General to sign Orders in Council (to make, for example, regulations or appointments). The meetings also provide an opportunity for Ministers to brief the Governor-General on significant political and constitutional issues that may have arisen during the week.

Source: Department of the Priome Minister and Cabinet – Executive

So apparently, unless I am missing something else, Andrew Little is 100% correct; “The Prime Minister can put Red Peak on the ballot paper without any party political support. He does it by Order in Council – he does not need other parties’ support for that.”

Which then begs the question; why is John Key trying to strong-arm Labour into supporting the addition of  the “red peak” option onto the ballot paper?

Answer: He is attempting to manufacture “cross party support” to extricate his government from a tricky situation. The flag referendum appears to be spiralling out of control with popular support growing for a flag design that is not simply a pathetic branding exercise (ie; silver fern) – but has become popular with a significant portion of the country.

If Key is to bow to popular pressure, he desperately needs Labour to come on-board, to neutralise a  guarenteed attack from the Opposition benches. As Key himself said on 15 September;

“And if Labour want to publicly come out and support the process and the change, that it’s an appropriate thing to do and argue that it’s an appropriate thing to do… then we might, but that hasn’t been what they’ve done so far.”

In effect, Key is employing precisely the same tactic Labour employed in 2007, where Helen Clark sought cross-party support to pass the Crimes (Substituted Section 59) Amendment Act (a.k.a the ‘Anti-Smacking Act’).

National’s parliamentary support, fronted by the then-Opposition Leader, John Key, gave a “seal of approval” from the Political Liberal-Right, to an otherwise contentious piece of legislation that was provoking howls of hysterical outrage from certain quarters.

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Key - Clarke- section 59 repeal

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Bringing Key on-board was risky for Labour, as it elevated Key to a near-equal position with then-Prime Minister, Helen Clark. But it was seen as necessary, to attempt to dilute the perception that this was “social engineering” inspired by Labour-Green “extremists”.

Eight years later, and this time John Key needs Labour to stifle a growing disenchantment with his personal vanity-project, which is threatening to take on a life of it’s own.

Key cannot afford to lose control of the flag debate. There is a reason that this is a binding referendum –  the framing of the debate; the four choices; and the sequence of questions (#1, which alternative flag do you want, followed by #2, pick one of two flags, an alternative or the current one) – are all under his personal control, via the Executive Council.

Andrew Little is correct, our esteemed Dear Leader could choose to add the “red peak” option by an Order in Council. Key does not require Labour’s assistance, either constitutionally or legally. But he doesn’t want to leave himself open to ridicule from Labour, and the perception that he has “lost control”.

When John Key stated on 15 September;

“I’m more than happy to meet with him but only on the condition it’s not about a yes or no vote. A yes or no vote doesn’t work. It doesn’t deliver what New Zealanders want.”

–  he was not talking about “what New Zealanders want”.

He was talking about what he, John Key, wants. And he needs Labour to do it.

The question is: why should Labour help Key?

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Nail #3

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This next bit comes courtesy from Paula Bennett, currently  Minister for Social Housing.

Radio NZ reported on 15 September,

A government think tank has released its final report on the country’s social services and is urging major reform.

But the Productivity Commission is unable to offer specific solutions as to how the government should deal with the group that is most difficult to look after.

Every year, the country spends $34 billion on social services, more than 10 percent of the GDP.

Read today’s final report into social services by the Productivity Commission (PDF, 4.3MB)

The commission recommends a move away from the current top-down approach, with more responsibility given to providers.

But it could not decide how to deal with the people with the most complex needs, instead suggesting that the government look at two possible solutions.

One option would be a standalone agency which oversees a client’s case across a number of agencies.

The second would be to fund District Health Boards (DHBs) to be responsible for the country’s most disadvantaged people.

It also recommends establishing a Ministerial Committee of Social Services, rather than an Office of Social Services, which had been recommended in its draft report. The ministerial committee would be responsible for reform of the sector.

The commission has defined social services as those including health care, social care, education and training, employment services and community services.

It has looked at agencies and services including Housing New Zealand, Work and Income, Whanau Ora, services for people with disabilities, and home care for the elderly.

Interviewed on Radio NZ’s Checkpoint, Paula Bennett was quick to reassure listeners that National was not penny-pinching at the expense of the most vulnerable in our society;

@ 2.47

“But we’ve never thought that money was the problem as such. If it needs more money, we will.”

The usual lie from a National Minister, considering the severe funding cutbacks to community organisations such as Women’s Refuge, Rape Crisis, community health organisations, Relationship Aotearoa, and many others.

But the following words to gush from her mouth simply beggared belief;

“What we’ve been really big on is the data analytics, that makes sure that we’re targetting the right services to the right kids and more importantly getting actual results for them.”

“Data analytics”?!

Bennett was adamant that  National has been  “really big on is the data analytics, that makes sure that”  they are  “targetting the right services to the right kids and more importantly getting actual results for them

Let’s take a moment to step back in time.

Specifically, set temporal co-ordinates of your Toyota Tardis to 16 August 2012. This NZ Herald story, from that year, tells the story;

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Measuring poverty line not a priority - Bennett

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The question here is; How can Bennett “target the right services to the right kids and more importantly get actual results for them” – when three years ago she stated categorically that finding the “data analytics” was not a priority?

What “data analytics” is she talking about?

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Nail #4

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The fiasco surrounding  the private company running Mt Eden and Wiri prisons got more bizarre on 15 September when it was revealed that  Serco had been let off $375,000 in fines for serious contract breaches.

Fines for breaching the contract between Serco and the Crown are one of the few sanctions that the government can levy on the company for not upholding contractual obligations.

A 15 September report from Radio NZ revealed;

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Serco let off $270k in fines - Minister

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The story then explained why  the heading – “$270k in fines’ – was an under-estimation;

Under questioning from Green Party corrections spokesperson David Clendon this afternoon, Corrections Minister Sam Lotu-liga spelt out the sum of Serco’s cancelled fines.

“Mr Speaker, since Serco took over management of Mt Eden Prison in 2011, I’m advised that Corrections has issued a total of 55 performance notices to Serco – seven have been withdrawn,” Mr Lotu-liga said.

“And the total amount of the withdrawals is $275,000.”

But it seems there are more fines that Serco has had cancelled and Mr Clendon asked the minister about one of them.

“Does the minister approve of Corrections’ decision to excuse the $100,000 fine that was imposed when Serco failed to take back razors that had been issued to prisoners, to inmates, if so why?” Mr Clendon asked.

Mr Lotu-liga responded that that was not one of the seven withdrawn fines he was referring too.

The chronically inept and terminally-tragic Corrections Minister, Sam Lotu-liga, was either unaware of the $100,000 fine – or was wilfully engaged in a cover-up.

However, whether the actual figure of $275,000 or $375,000 is actually irrelevant.

What is truly astounding is that someone within either the Minister’s office or the Corrections Dept had made the decision to scrub $375,000 in fines for serious contract breaches.

The obvious questions which beg to be asked and answered are;

  1. Who made the decision to dismiss $375,000 in fines issued to Serco?
  2. Why was the decision made to dismiss the fines?
  3. Does the same principle  of waiving fines extend to every citizen in New Zealand who has exceeded the speed limit; parked illegally; or committed  some other offence which resulted in a monetary penalty?
  4. What the hell is going on?!

The next time our esteemed Dear Leader or some other National minister utter the phrase, “One law for all” – they should be immediatly reminded that obviously “One Law for All” does not extend to companies like Serco.

15 September – one hell of a day for National. It got about as crazy as crazy can be in this country.

Or is there more to come?

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References

Radio NZ: Silver Fern chair sees no problem with Chinese buy-in

Wikipedia: Bright Foods

NZ Companies Office: Synlait Milk Limited

China Daily: China’s Bright Dairy invests in NZ’s Synlait

NY Times: China’s Global Ambitions, With Loans and Strings Attached

NZ Herald: Chinese investment set to boom

Radio NZ: Red Peak – Politicians fling flag barbs

Ministry for the Environment:  New Zealand’s Greenhouse Gas Inventory 1990-2013

Radio NZ: A flutter of hope for Red Peak?

NZ Herald: Red Peak – 50,000 strong petition handed over at Parliament

Fairfax media: Thousands march against mining

TV3: Govt confirms no mining Schedule 4, national parks

Te Ara – The NZ Enclyclopedia: Cross-party negotiation on legislation

Radio NZ: Major social service changes recommended

Radio NZ: Checkpoint – Government willing to spend more on social services (alt. link)

Dominion Post: Women’s Refuge cuts may lead to waiting lists

NZ Herald: Govt funding cuts reduce rape crisis support hours

NZ Doctor: Christchurch’s 198 Youth Health Centre to close its doors as management fails to implement directives from CDHB

Scoop media: Relationships Aotearoa – our story

NZ Herald: Measuring poverty line not a priority – Bennett

Radio NZ: Serco let off $270k in fines – Minister

Radio NZ: Serco let off $375k in fines (alt. link)

Previous related blogposts

Kiwis, Cows, and Canadian singers

That was Then, this is Now #10

Doing ‘the business’ with John Key – Here’s How (Part # Rua)

Three Questions to Key, Williamson, Coleman, et al

Taiwan FTA – Confirmation by TVNZ of China pressuring the Beehive?

Why Labour should NEVER play the “race card”

Letter to the editor: An idea regarding a new(ish) flag

The Flag Referendum – A strategy for Calm Resistance

Flying the flags of discontent – MOBILISE!

It’s a Man’s World, I guess

The cupboard is bare, says Dear Leader

The closure of three prisons and loss of 262 jobs – five issues for the National govt

So what is the rationale for private prisons?

Questions over Serco’s “independent” monitors and it’s Contract with the Crown

“The Nation” reveals gobsmacking incompetence by Ministers English and Lotu-Iiga

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184mupp

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This blogpost was first published on The Daily Blog on 17 Septembr 2015.

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

18 September 2015 8 comments

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cold and damp houses - newspaper magazine front pages

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Recent statements by Minister for Social Housing, Paula Bennett,  Minister Responsible for Housing New Zealand, Bill English,  Building and Housing Minister, Nick Smith, and Prime Minister John Key, have been shown to be deceptively misleading – and in many instances, outright lies.

Their public utterances have been revealed  to be untrue after this blogger discovered a statement from Housing NZ, buried deep within one of their Annual Reports.

#1 – Nick Smith

On 25 April 2014, Building and Housing Minister, Nick Smith, was indignant when he rejected a claim by the Labour Party that National was planning to siphon off  Christchurch earthquake insurance payouts to Housing NZ as government dividends.

As Radio NZ reported;

Papers obtained by Labour under the Official Information Act reveal plans to delay maintenance and redirect Canterbury quake insurance payouts to meet the Government’s demands for increased returns from state housing.

Labour’s housing spokesperson Phil Twyford says Housing New Zealand has agreed to pay higher dividends to the Government by using some of its $320 million insurance payment and putting off repairs and maintenance.

Mr Twyford says the Government is robbing Housing New Zealand in Canterbury to fund dividends going into the Crown account. He says Housing Minister Nick Smith needs to explain why money that should have gone into the rebuild has gone into Government coffers instead.

But Housing Minister Nick Smith says it’s not a case of earmarking any particular income towards the dividend, but it’s not true to say it will come from the insurance payout.

He says insurance proceeds are going towards capital expenditure, including 2000 new houses, which will be under construction by the end of 2015.

Dr Smith says Housing New Zealand has always been expected to return a dividend to the Crown, including under the previous Labour-led Government. This comes from normal operating revenue, including rent and rent subsidies from the Government.

Housing New Zealand’s latest statement of intent shows $308 million in insurance money earmarked for capital expenditure this financial year.

#2 – Bill English

Barely five months later, Housing NZ announced a dividend of $118 million to be paid to the government for financial year – the largest since 2009-10;

Housing New Zealand returned a $108 million dividend in the past financial year, the third largest ever paid.

At the time the responsible minister, Bill English said the higher dividend would allow the Government to help more people with serious housing needs.

Green Party co-leader James Shaw said the idea the Government was continuing to make money off State housing when children were getting sick from living in those houses was unacceptable.

He said the Crown must rule out taking a dividend until all Housing New Zealand stock was up to standard.

“Given that Housing New Zealand homes are actually killing their residents, I think it makes no sense for there to be any dividend at all.

“Everything that they get should be ploughed back into making sure that their homes are safe.”

Minister Responsible for Housing New Zealand, Bill English justified the massive  dividend with the extraordinary statement;

“Housing New Zealand has sufficient cash to invest in new houses and at the level that we’ve specified, and to do its maintenance programmes. So really the dividend is about just a bit of pressure on them to be efficient.”

The cash-grab by National had been hinted earlier, on 24 March, when Bill English signalled that maintenance on HNZ properties would be deferred;

Mr English says the lack of maintenance on state houses is concerning and that in the long run the government will need to invest the $1.2 billion dollars in state houses to get them up to scratch.

However, he says that won’t all happen this year.

When asked why Housing New Zealand had not spent as much money as it should have on maintenance, Mr English put the blame partly on the previous Labour government saying they had chosen to build new state houses rather than fix up old ones.

Yet, that quiet admission did not stop both Paula Bennett and Bill English from repeating their ‘spin’ that Housing NZ had sufficient cash for necessary maintenance of their housing stock;

Bill English  – 5 June 2015

“They’ve done a very large scale programme – insulated every house that it can, which is 48,000 houses over the last four or five years.

It’s got to deal with the same limitations of process as everybody else, it’s got to get consents, it’s got to find a workforce, but it’s not short of money to do the job.”

#3 – Paula Bennett

Paula Bennett, Minister for Social Housing – 12 June 2015

@ 4.28

“What I will say is that it’s not, um, not a money problem. So there is enough money there for us to get that stock up.”

@ 5.42

“It’s not actually about the money. The money is there to be spent on the maintenance.”

Bill English – 8 September 2015

“Housing New Zealand has sufficient cash to invest in new houses and at the level that we’ve specified, and to do its maintenance programmes.”

Bill English – 9 September 2015

@ 2.36

“The constraint on repairs isn’t cash. They have enough money to do the jobs that they need to do.”

@ 4.28

“With respect to the maintenance. Ah, yes, if any tenant lets Housing NZ azbout any, what they call urgent maintenance needs, and they got 125,000 of those notifications, ah, in the last year or two, ah, then Housing NZ has the cash to act on those…”

@ 6.11

“In fact, our main challenge there is not [a] lack of money…”

@ 6.35

“So the constraint isn’t cash, it’s a lack of houses.”

All of which was  revealed to be dishonest spin by these two Ministers, when this statement was discovered from Housing NZ’s 2013/14 Annual Report;

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housing nz annual report 2013-14 maintenance cutbacks

The responsive repairs programme, which includes work on vacant properties, is dependent on demand, which was higher than expected in 2013/14. Consequently, the budget was overspent due to higher volumes of work orders. The average cost per work order was also higher as a result of more comprehensive repairs and upgrades being carried out on vacant properties. To mitigate this overspend, we deliberately reduced the planned maintenance programme, which decreased the percentage of maintenance spend on planned activity.” – [p28]

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Perhaps English and Bennett forgot – or did not realise – that Housing NZ would disclose the true nature of their lack of funds for on-going maintenance of their increasingly dilapidated properties.

#4 – John Key

Perhaps English and Bennett both hoped that the media and public would buy their #1 deflection – that it was all a problem left over from the previous Labour government. Even our esteemed Dear Leader repeated the same spin in Parliament on 26 August this year;

“But what I can say is that this Government is proud of the fact that it is spending $300 million a year improving the mess we inherited from Labour. Its own house was never in order. It is not in order at the moment. No wonder we inherited-“

“It would be easier to take the member seriously if what Labour did when in Government was actually maintain the houses. But, in fact, not only did it not do that, it let them run down … It is a joke for the Labour Party members to come here and talk about this. They ran the housing stock down. They should hang their heads in shame—that is what they should do.”

“Where is the moral compass of an Opposition that just failed to upgrade and maintain houses? They were a mess under the Labour Government. They were a disgrace, and this Government has actually had to fix them up. It is the same old story all the time with Labour: hopeless in Government; roaring like lions in Opposition.”

“I am advised by the Minister responsible for HNZC that the previous Labour Government suspended the maintenance on those properties to build more properties. Labour let those houses run down, it let those tenants get sick, and now in Opposition it wants to pass the buck to someone else. It is a disgrace, Mr Little. It is a disgrace.”

In that one exchange, Key repeated the Blame Labour mantra four times.

During the 9 September interview on Radio NZ’s ‘Checkpoint‘ with Bill English, Guyon Espiner voiced his obvious disgust/weariness at that hoary old excuse;

“Ok, I think after seven or eight years we’ve had enough of you blaming the [previous] Labour government.”

Bennett and English did the same throughout various Radio NZ and television interviews.

At one point during the  9 September Radio NZ interview, English even  blamed tenants for the state of their run-down homes;

English: “And generally the reason a repair or an upgrade doesn’t happen is because they don’t –  is because they need to be told it’s needed, ah, they’re not in every house every week  but when, y’know as I said -“

Espiner: “So hang on, it’s the tenant’s fault, for not telling them, is it?”

Key used that blame-gaming on 26 August, in Parliament,  during his previously mentioned blame-game session;

“But also I will say that my mother took absolute pride in making sure that she kept the house clean, tidy, and ventilated.”

So, according to Key, English, and Bennett, the poor state of Housing NZ properties is due to;

  1. The previous Labour Government
  2. Tenants

Nothing to do with $664 million in dividends siphoned off by National to fund reduced tax revenue post-2009/10 tax cuts, which led to National demanding bigger and bigger dividends from SOEs such as Solid Energy; state-owned power companies, and social services such as Housing NZ.

If ever there was a clearer picture of transferring wealth from low-income New Zealanders to the top 10% of income earners and “high net worth” (ie; filthy rich) individuals – it is the financial gutting of Housing NZ.

Despite claims that Housing NZ has “the money is there to be spent on the maintenance” – the facts prove otherwise. Housing NZ’s own statement condemns two ministers and the Prime Minister as manipulative liars;

“To mitigate this overspend, we deliberately reduced the planned maintenance programme, which decreased the percentage of maintenance spend on planned activity.”

# 5 – Nick Smith (again)

Perhaps the most tragic result of National’s cash-grab was the death of two-year old Emma-Lita Bourne, who died in a grotty, damp, cold State house. The death was preventable, as the Coroner, Brandt Shortland ,reported;

The coroner’s report into the toddler’s death, which was released on Thursday, says the poor condition of the state house in the South Auckland suburb of Otara was a contributing factor to Emma-Lita’s death.

[…]

“I am of the view the condition of the house at the time being cold and damp during the winter months was a contributing factor to Emma-Lita’s health status.”

Building and Housing Minister* Nick Smith, expressed his version of human empathy with this callous observation of the little girl’s short life;

“People dying in winter of pneumonia and other illnesses is not new.”

Three lying ministers and an emotionless psychopath/automaton.

This is what we have for a government.

It also offers a third option for National’s blame-gaming spin when challenged on their failures;

 

  • The previous Labour Government
  • Tenants
  • Winter illnesses

 

No doubt National will come up with other excuses and others to point a finger at. This is, after all, the party of personal responsibility.

#6 – Memo to Mainstream Media

In the meantime,

Memo to Mainstream Media:

Next time English, Bennett, or Key claim that Housing NZ has sufficient money, after dividends are extracted, to carry out maintenance please ask them why HNZ stated in their 2013/14 Annual Report;

“To mitigate this overspend, we deliberately reduced the planned maintenance programme, which decreased the percentage of maintenance spend on planned activity.”

Because we’d really like to know.

* National has not one, but three ministers for housing portfolios. And they still can’t get it right.

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Addendum1 – 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)

Addendum2 – Housing NZ dividends under Labour

Annual Report 2001/02 – $9 million (p51)

Annual Report 2002/03 – $3 million (p55)

Annual Report 2003/04 – $176 million (p50)

Annual Report 2004/05 – $44 million (p42)

Annual Report 2005/06 – $14 million (p71)

Annual Report 2006/07 – $20 million (p54)

Annual Report 2007/08 – $13 million (p51)

Annual Report 2008/09 – $2 million (p71)

Total: $281 million (over 8 years – no figures found for ’00-’01 period)

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1-in-10health

Source: Shelter.org.uk

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References

Radio NZ: Housing NZ not cash cow – minister

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

Radio NZ: Morning Report – English defends $118M Housing NZ dividend (alt. link)

Radio NZ: Housing NZ to pay Crown $118m dividend – audio (alt. link)

Housing NZ: Annual Report 2009-10 (p86)

Radio NZ: State housing criticism valid, says English

TVNZ News: English concerned by State House deferred maintenance bill

Radio NZ: The state of state housing (alt. link)

Parliament: 2. Housing New Zealand Corporation, Minister – Confidence

Fairfax media:Damp state house played part in toddler’s death

National Party: About Personal Responsibility

Previous related blogposts

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

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Theres always a market solution - housing nz - bill english

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This blogpost was first published on The Daily Blog on 13 September 2015.

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