Hints of change for State house rentals

Press, 28 November 1984, Page 42

Hints of change for State house rentals

PA Wellington The Government may make State house rentals and mortgage repayments suit the financial positions of the families with them, said the Minister of Hous* Ing, Mr Goff. Mr Goff said the Government fully supported the concept of subsidised assistance to people when they were in need to ensure every New Zealander had access to adequate and affordable accommodation. A further housing package would be introduced in March next year, he said in a speech to the Institute of Valuers and the Property Management Institute. In that package there would be a policy of relating rental for State houses, and interest rates and mortgage repayments on corporation loans, more closely to the circumstances of the tenant or borrower. But the Government did not accept that the subsidy needed to remain in place for life. “In a time of economic constraint, subsidising higher income earners is a luxury we can no longer afford.

“The March package will mean that as or when a family’s circumstances and

income improve, the level of subsidy being given will abate.” The package would also tackle the problem of how the Housing Corporation should be funded. At present it was advanced money through the Government’s

loans accounts. “We are now examining the proposal that the corporation could raise much of its own finance in the private capital market, with assistance from Government coming by way of subsidy.”