Nats target social housing again.

[Oh_hunnihunni]

Claiming John Key as an unbiased source for a review is a bit much  for most to swallow; in fact so blatant is it that it gives the strong impression that this govt not only doesn't care about the welfare of those already strruggling, it also does not care to disguise to any great extent, its very clear agenda to widen the gap between rich & poor.
Impoverishing those already struggling while further enriching the already wealthy seems to be the only agenda of this govt.

https://www.scoop.co.nz/stories/HL2405/S...tealth.htm

The scathing “independent” review of Kāinga Ora barely hit the table before the coalition government had acted on it. The entire Kāinga Ora board will be replaced, and a new chair (Simon Moutter) has been announced. Hmm. No aspersions on Bill English, but the public would have had more confidence in this “independent” critique of Kāinga Ora’s expanded building programme if it had been carried out by someone other than a former National Party leader.
In this case, it was carried out by the same National Party leader whose own administration’s inadequate housing build – and selling of state houses- had caused Kāinga Ora to embark on its crash building programme in the first place.
Supposedly, Kāinga Ora was “underperforming,” had “little accountability” and was on a “financially unsustainable” debt path. Really? While the coalition government has chosen to highlight the rising debt, it has deliberately ignored the rising value of the assets being created via that debt. This is called investment in the future. Alien territory, I know, for the National Party.
Frankly, a $9 billion debt looks acceptable in future, because:

(a) Kāinga Ora would be building housing assets on a debt pathway that as Labour’s Kieran McAnulty has pointed out, would by 2060, have generated assets worth in the region of $200 billion, against that debt of $9 billion. Along the way, McAnulty added, debt was estimated to be running at only 25% of the worth of the assets being created.

(b) Kāinga Ora would be receiving an income stream from its rents, and

© Kāinga Ora has the ability to borrow to service its debt at cheaper rates than anyone else.

Ultimately, debt is what you inevitably incur when you make the investments necessary to address a housing crisis.

How many mortgages are only 25% of the value of the property?