Latest news with #KāingaOra
RNZ News
12 hours ago
- Politics
- RNZ News
Opposition slams Kāinga Ora decision to scrap public housing builds
Labour's Kieran McAnulty said cancelling the builds made no sense, with homelessness rising. Photo: RNZ / Samuel Rillstone Labour housing spokesperson Kieran McAnulty has condemned the government's decision to halt thousands of planned state-housing builds. State housing provider Kāinga Ora has scrapped hundreds of developments that would have delivered nearly 3500 homes and will sell a fifth of its vacant land. The agency says the move will save up to $220 million. McAnulty said it made no sense to cancel these builds, while homelessness was rising. He said the housing crisis in New Zealand continued to worsen and this was a time the government should build more Kāinga Ora homes. "Homelessness is increasing at unprecedented levels and 15,000 construction worker have lost their jobs since this government came in," said McAnulty. "People will see this for exactly what it is - the National Party willing to promise all sorts to get elected, with no intention of following up. "Nicola Willis pledged a 1000 per year net increase in social housing in Auckland, but they're not going to do that. The only way they do that is if they count the houses the previous government funded. "Chris Bishop and Tama Potaka said they would build more houses than the previous Labour government - that would have been a decades-long record. Now they're selling houses and going backwards in some regions." Green Party housing spokesperson Tabitha Paul claimed the cost of not housing people was far higher than providing the housing they needed. "We know the wait list for public housing across the country is really high and homelessness is increase, because we're seeing it more on our streets," she said. "Kāinga Ora taking the narrow view that this might save them a few dollars will cost them more in their health fees, their justice fees and all the other ways the housing crisis manifests, when people are not properly housed." Housing Minister Chris Bishop ordered Kāinga Ora to deliver a turnaround plan that would ensure financial sustainability. The agency's plan will see it refocus as a landlord, rather than a developer, and the number of houses it owned would stabilise from 2026. Chief executive Matt Crockett said Kāinga Ora reviewed more than 460 social housing projects to ensure it was getting the best value for money and supplying houses in the areas of greatest need. "These reviews were essential to ensuring we only progress new housing projects that make commercial sense and that we sell land which is surplus to our requirements, so we can get on a more financially sustainable footing,'' he said. "Our reviews have highlighted an abnormally high number of projects and land holdings that no longer make sense for Kāinga Ora, if we want to get ourselves in a better financial position." The agency decided 212 projects that would have delivered 3479 homes would not proceed, because they did not stack up financially or were in the wrong locations. Another 254 projects would continue, building more than 1800 new homes. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
a day ago
- Politics
- Scoop
Public Housing Advocates Call Decision To Cancel State Housing Projects And Sell Land 'Devastating'
The decision to cancel 212 Kāinga Ora projects – 3,479 homes that could have provided decent and stable housing to communities is being called "devastating" by public housing advocates that have been calling on the Government to keep building state housing. 'The Government has made a choice to sell state housing land and cancel projects that would have provided thousands of decent and stable housing to people in our communities,' says Vanessa Cole, spokesperson for Public Housing Futures. 'These state housing projects were already not enough to house our waitlist, let alone the many people in our communities living in housing stress. By cancelling these projects the Government is going to force more people onto our streets and into their cars,' says Cole. 'Many of these projects, like the Jordan Ave project in Onehunga, had state housing and families living there. They were forced out on the promise that there would be more state housing built for their communities. Now the land is being sold to the highest bidder – this is devastating,' says Cole. 'State housing is infrastructure for care and connection – it's what makes our communities places where everyone can thrive. When we lose state housing, we all suffer – it means more people live in housing stress. 'Selling land to private developers and investors will only drive up the price of housing and rents. The Government is propping up the private market – while removing one of the only stable and suitable housing options. 'Building state housing should be a priority - it keeps our tradies in work, it houses our communities. The private market will not do this. 'This is heart breaking for the 20,000 households on the housing register, for the over 100,000 people who are living in severe housing deprivation and for the many people struggling to pay their rent each week,' says Cole.
RNZ News
a day ago
- Business
- RNZ News
Kāinga Ora halts hundreds of housing developments, sells vacant land
Kāinga Ora CEO Matt Crockett (right) and Housing Minister Chris Bishop. Photo: RNZ/ Marika Khabazi State housing provider Kāinga Ora is halting hundreds of housing developments which would have delivered nearly 3500 homes, and selling a fifth of its vacant land. The agency's chief executive Matt Crockett said on Thursday the "critical step" in its reset plan would see it write down up to $220 million. Housing Minister Chris Bishop ordered Kāinga Ora to deliver a turnaround plan that would ensure financial sustainability . The agency's plan will see it refocus as a landlord, rather than a developer, and the number of houses it owned would stabilise from 2026. Crockett said Kāinga Ora reviewed more than 460 social housing projects to ensure it was getting the best value for money and supplying houses in the areas of greatest need. It was decided 212 projects that would have delivered 3479 homes would not proceed because they did not stack up financially, or were in the wrong locations. It would press on with 254 projects, building more than 1800 new homes. Kāinga Ora would also sell about a fifth - 36 hectares - of vacant land because it was no longer needed. The proceeds would be put towards new housing or debt, and the agency would hold on to the remaining land for possible future development. "These reviews were essential to ensuring we only progress new housing projects that make commercial sense and that we sell land which is surplus to our requirements so we can get on a more financially sustainable footing,'' Crockett said. "Our reviews have highlighted an abnormally high number of projects and land holdings that no longer make sense for Kāinga Ora if we want to get ourselves in a better financial position." Crockett said the exact amount being written down would not be known until the end of year accounts are audited. But it included $150 to $180 million of capital that was spent on housing projects that will not go ahead as originally planned, and $40 million for land that has fallen in value since Kāinga Ora purchased it. Kāinga Ora could "largely absorb" the unbudgeted write-downs through operating efficiencies, a disciplined approach to spending, and reduced staff numbers, Crockett said. The agency last month slashed 620 jobs , of which nearly 200 were vacant. It would still exceed the annual budget for write-downs, Crockett said. "We need to bite the bullet on this," Crockett said. "There is often some short-term pain that comes with the resetting of past decisions, but it needs to be done." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
4 days ago
- Business
- Scoop
Bremworth Awarded Contract For Supply Of Wool Carpet To Kainga Ora
A decision by Kāinga Ora to award a two-million-dollar contract for the supply of wool carpet in some of its new builds and renovations is being hailed as a breakthrough for NZ's natural fibre sector by industry experts. The selection of locally owned manufacturer Bremworth as a supplier of wool carpet for Kāinga Ora's newly constructed and renovated homes will see wool carpet installed in around 900 planned state housing projects annually for the duration of the three-year contract. Bremworth CEO Craig Woolford says the win has far-reaching implications for both public sector procurement, the rural community and the broader property development industry. 'This isn't just a commercial contract, it's a signal to the entire construction sector that wool carpet meets the durability, safety and sustainability standards expected of any high-traffic housing environment. Government agencies like Kāinga Ora are seen as setting the benchmark for the wider industry,' says Woolford. 'Wool has now passed one of the most stringent testing processes in the country. It's proof that when put on a level playing field, New Zealand-made natural fibres can not only compete, but they can also win.' 'The fact this contract has been awarded is the result of years of effort to ensure wool had a seat at the table,' Woolford says. 'The inclusion of wool is a win for New Zealand's farmers and future tenants of these homes.' 'Beyond the public housing win, we're now expecting to be invited to present wool carpet solutions to property developers and construction firms involved in Kāinga Ora builds, and those working on private developments. It is expected that this project will give us access to projects that had previously defaulted to synthetic solutions. Woolford says that while the production volumes for the Kāinga Ora contract represent a relatively small portion of Bremworth's total capacity, the strategic value is enormous. 'To produce the annual wool carpet requirement for the Kāinga Ora contract you're looking at approximately 95 tonnes of wool, the annual fleece of circa 25,000 New Zealand sheep. It's a demonstration of the potential scale of opportunity for our wool sector.' 'It also opens the door for broader adoption in schools, commercial fit-outs and private homes.' He says wool's natural properties, including its flame resistance, air purification capabilities, thermal and acoustic insulation and biodegradability make it uniquely suited to New Zealand's sustainability goals. 'Kāinga Ora's new state homes are built to the latest standards, designed to deliver warmth, comfort and health outcomes for some of New Zealand's most vulnerable residents, and flooring choices like wool carpet help play a role in achieving that.' 'This is an important milestone, but also just the beginning of a much bigger conversation about the role of New Zealand wool in our built environment.
1News
12-06-2025
- Business
- 1News
Kāinga Ora to use wool carpet in new state homes
Kāinga Ora has announced it will use wool carpet in new state homes from July, following a directive that government agencies use wool in the construction and refurbishment of their buildings. The change in procurement rules, to make wool the preferred option in government buildings, was a directive to about 130 agencies in April and takes effect from July. On Wednesday, the state housing provider announced it would follow suit, with 4500 new state houses expected to be fitted out in the next three years. The return of wool carpets to state homes was welcomed by Economic Growth Minister Nicola Willis and Associate Agriculture Minister Mark Patterson at Fieldays the same day. "The decision is great news for sheep farmers, and all the New Zealanders whose jobs and incomes are tied to the fortunes of our world-leading wool industry," Willis said. ADVERTISEMENT The morning's headlines in 90 seconds including passengers stuck on ferry overnight, new flights to Sydney coming, and the weirdest things we leave in Ubers. (Source: 1News) She said the Government wanted wool producers to have more opportunities to supply woollen products to the construction industry "wherever practical and appropriate". "Kāinga Ora's new supplier agreement was made possible because the agency chose to re-open an initially nylon-only carpet tender and give wool a chance to compete. "I'm told woollen carpet manufacturers responded very strongly to that opportunity and that the new carpet supply agreements come with no additional cost." The new procurement requirements covered government-owned buildings that cost $9 million or more, and refurbishments of more than $100,000. A spokesperson said the total value of the Kāinga Ora contract was commercially sensitive and couldn't be disclosed. Nicola Willis speaks to media at Parliament on May 6. (Source: 1News) ADVERTISEMENT They said some contracts for carpet in homes had already been let, but under the new supply agreement newly contracted fit-outs would be met through the wool-carpet supply contract. Where nylon carpet had already been installed in existing homes Kāinga Ora would continue to use nylon carpet for single room or smaller patch repairs. Willis said the message was clear. "When wool was put back on the table it more than held its own, delivering value for taxpayers and a win for sheep farmers." She said the new policy directed government agencies to identify opportunities to use woollen products, and to properly consider a range of factors in procurement including whole-of-life cost, sustainability and health benefits. "We're leveraging government spending to back the wool industry and the New Zealand economy. I hope private businesses will follow our lead." A new Kāinga Ora home in Richmond, August 2023. Photo: RNZ / Samantha Gee (Source: ADVERTISEMENT She previously said natural qualities allowed wool to dampen sound and absorb pollutants, while woollen fibres contributed to healthier indoor environments by naturally regulating humidity and improving air quality. Patterson said the move continued to deliver on a New Zealand First and National Party coalition agreement to prefer woollen fibres in government buildings. "Woollen fibres create safer, healthier and more sustainable living environments for families." He said the sector contributed $549m to the economy in the financial year ending 2024 from exporting processed and unprocessed wool products. "The Government is determined to help lift the fortunes of the strong wool sector in supporting our sheep farmers."
