Little relief likely in Budget for housing

Press, 15 August 1984, Page 1

Little relief likely in Budget for housing

By

MICHAEL HANNAH

in Wellington

Little immediate relief in State housing is predicted in the Budget by the Minister of Housing, Mr Goff, in spite of a report released yesterday, showing a 50 per cent increase in urgent housing cases in the last two years.

The report, prepared by the Housing Corporation, also shows that the number of State house units dropped 2712 to 57,753 in the three years to March, 1984.

Mr Goff told “The Press” yesterday there was no way he could get a Budget package which would compensate for the loss of so many units.

“This Budget is not going to reflect the ability of the Labour Administration to move in any of the social areas,” he said. He promised, however,, that the Budget might contain signals of what Labour hoped to achieve. A housing package for the lower-income groups has

been promised for the Budget, but Mr Goff indicated that it would not be able to be introduced overnight. He predicted there would be one or two tough years in the State housing area, but thought that several projects could be in place in two years. These included two already being implemented, involving the temporary suspension of the sale of State houses, and the; provision of a 535,000 loan' to State house tenants wanting to buy a house from the, private sector.

® Other measures would also be implemented, however, such as a requirement that tenants in State rental units pay a “fair market

rent” when the rent freeze expires.

© Better use of State units, possibly involving the construction of more pensioner units on very large sections which at present house older couples or widowed tenants.

@ A possible return to land development by the Housing Corporation. Mr Goff believed something might also be done to speed up planning procedures for land development,, and increase the number of builders available, though these required further investigation. He also thought that the suspension of sales of State houses was only temporary and would be lifted when a balance had returned between the need for housing and the ability to supply it. Once this happened, sales would proceed at a faster rate, though in the meantime, sales might be allowed where individual cases merited sale or where the Government was trying to achieve social balance.

Mr Goff’s comments arose after he released the results of a study by the Housing Corporation into the state of public renting. He said the report showed a clear worsening over the last three years, and the trend could continue before things got better. Of great concern to the Labour Administration was the sharp upward movement in the waiting list of people deemed to have an urgent housing need, he said.

The report showed the number in this category had risen from 585 applicants in June, 1982, to 685 in June, 1983, and to 876 in June, 1984.

Each one of that number represented a family or a' person in desperate need of adequate housing, Mr Goff said. The social consequences in terms of health, education, and family breakdown were appalling.

yet the National Government had year by year allowed the situation to continue to deteriorate.

Those on the ordinary State house waiting list had also increased dramatically over the last six months, Mr Goff said. The figure at present stood at 12,467 applicants, the highest since the mid-19705.

This was in spite of a purging of more than 600 applicants last October, whom the Housing Corporation recognised it had no chance of helping, he said. While the waiting lists grew longer, the ability of the Housing Corporation to house people was diminishing, Mr Goff said. Immediately before the 1981 election, the Housing Corporation had housed more than 7900 families each year, but in the last two years, the number had dropped to just over 4000

families. While this reflected generally worsening economic conditions and unemployment, the net loss of State house units was also a factor, he believed. In March, 1981, the corporation had 60,465 units, but this dropped by 2712 to 57,753 by March this year. Sales of State houses had vastly exceeded the ability of the Government to replace them, Mr Goff said. The severity of the housing crisis meant that it would take some time to resolve. The options available to alleviate increasing housing pressures were severely limited as the National Government had not only left a worsening housing crisis but also a huge debt and an economy “flat on its back.” The Labour Government was pledged to stopping a further rundown in the State rental units and to investigating ways to make better use of existing housing stock.