Kia ora. Long stories short, here’s my top things to note in Aotearoa’s political economy around housing, climate and poverty on Wednesday, November 27:
The News: Housing and Infrastructure Minister Chris Bishop disappointed Community Housing Providers (CHiPs) yesterday by pouring cold water on the idea of Government guarantees for CHiPs’ borrowing from KiwiSaver managers and by proposing more leasing of social homes, which CHiPs don’t want.
Scoop du jour: Michael Morrah reveals this morning the Government has built a secret radioactive waste facility near Palmerston North via NZ Herald/Youtube
Deep-dive du jour: Fox Meyer and Laura Walters report in depth this morning via Newsroom from official advice documents about the lack of evidence behind the Government’s decisions in its first year in office.
Solutions news: SolarZero was put into liquidation last night. RNZ
Editorial Opinion du jour: Sharon Murdoch’s cartoon on fossils finding fossils.
(There is more detail, analysis and links to documents below the paywall fold and in the podcast above for paying subscribers. Normally, if we get over 100 likes we’ll open it up for public reading, listening and sharing, but I’ve decided to open this up from the start due to the public interest involved.)
The News: Bishop soft-pedals on guarantee for CHiPs
Bishop says wants level playing field, but reluctant to guarantee CHiPs
Housing and Infrastructure Minister Chris Bishop disappointed Community Housing Providers (CHiPs) yesterday in a speech to the Community Housing Aotearoa (CHA) conference by pouring cold water on the idea of Government guarantees for CHiPs’ borrowing from KiwiSaver managers and by proposing more leasing of social homes, which CHiPs don’t want.
Here’s Bishop’s full comments below on the guarantee idea, which Community Finance called for on Monday night. He was clearly downplaying any action soon, despite saying he wanted urgent action to build more social houses and put CHiPs on a level playing field with Kāinga Ora. Here’s Bishop’s comments (bolding mine):
I am pleased to announce that the Government is committed to exploring a credit enhancement intervention for CHPs, so that they can access suitable debt.
Over the next three to four months, the Government will consider a range of options to support CHPs’ access to debt on terms reflective of their real risk and circumstance.
These options include, but are not limited to: providing direct lending or guarantees to CHPs; establishing a Crown intermediary to provide financing efficiencies, or providing lending or guarantees to a private lender.
CHPs having access to financing that is not unnecessarily restrictive gives them a stronger economic case for building more social houses and goes some way to levelling the playing field with Kāinga Ora.
The days of the state preferring its own entity are over.
But – I will be blunt – this work will take time, and there are many details to comb through. I have requested that the Treasury, with support from the Ministry of Housing and Urban Development, report back to me early next year with details on a fulsome credit enhancement proposal for consideration next year.
Depending on what that looks like, it also may take some time to implement.
I’m being realistic about timelines, because I don’t want you to wait for the Crown and put a break on the fantastic momentum that we want the CHP sector to continue. Bishop in a speech to the Community Housing Aotearoa (CHA) conference in Auckland yesterday.
The timeframes here suggest a guarantee won’t be possible until 2026 at the earliest.
CHA CEO Paul Gilberd repeated the sector’s preference for social homes to be owned by either CHiPs or Kāinga Ora when commenting to RNZ after the speech, arguing there was a risk that at the end of a lease, developers could sell the homes, removing them from the social housing pool.
"We would love for that new supply to be held and retained and recycled forever within the charitable community housing sector, or within Māoridom, or by the agency of the government, Kāinga Ora," he said.
But the community housing sector had to accept the government was tightening its belt, meaning they had to "learn to do more with less", said Gilberd.
"That's the challenge that we've been set, and I suppose my reticence here is just simply that it's going to be difficult," he said. Via RNZ
‘What are you waiting for?’
Labour Housing Spokesman Kieran McAnulty said Bishop’s speech “should have been titled ‘we want you to build houses, but we refuse to spend money so you’re on your own’.”
“Chris Bishop is all talk when it comes to housing. It was hoped that in his speech there would’ve been government support for desperately needed public housing.
“Instead, there was no commitment to build any more public homes, no further support for the community housing providers and no increases to Income Related Rent Subsidies.
“Everyone was hoping the government would at least announce it would guarantee loans for the newly established community housing funding agency to make them cheaper. But again, no commitment from the Minister.” Kieran McAnulty in a statement.
Editorial Opinion du jour: Fossils finding fossils
The Kākā’s Journal of Record for Wednesday, November 27
Housing: Housing and Associate Finance Minister Chris Bishop announced changes to the way Community Housing Providers deliver social housing, including removing termination for convenience clauses for new housing contracts and increased use of leasing to provide housing. The Labour Party said the changes didn't include any commitment to build more public homes or increase income-related rent subsidies.
Health & poverty: University of Canterbury research found that children who move from well-off areas into more deprived neighbourhoods were three times more likely to suffer from depression as teenagers. A separate study identified several factors, including family socioeconomic status, associated with more frequent household moves.
Housing & poverty: A Public Health Communication Centre briefing found LGBT+ NZers are disproportionately affected by housing instability. The PHCC noted Government does not collect data on compliance with Healthy Homes Standards and assessments, putting the onus on tenants to report non-compliance.
Health: Health Minister Dr. Shane Reti announced the shifting of $30 million in funding for Te Whatu Ora Health New Zealand to hire 50 new senior doctors and nurses. The New Zealand Nurses Organisation said the funding is "reallocated money from within existing budgets”, and insufficient to fix nurse shortages. RNZ
Environment & courts: The Court of Appeal rejected J Swap Contractors' bid to expand its subsidiary Kaimai Properties' andesite quarry into protected Waikato land. QEII Trust CEO Dan Coup said J Swap brought four cases to court over the past eight years challenging the QEII covenant preventing mining on its land.
Housing & poverty: A report by the New Zealand Council of Christian Social Services found older people struggled to get emergency and public housing. The report urged the Government to develop a comprehensive plan.
Timeline-cleansing nature pic of the day: Flapping its wings
Ka kite ano
Bernard
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