Sam Cooper1114581

ERST302 Policy Narrative Social Housing Reform Act

2013

Monday 29th August 2016

Introduction

The Social Housing Reform (Housing Restructuring and Tenancy Matters Amendment) Act 2013, passed on the 19 November 2013, aimed to put an end to New Zealand’s all too well-known social housing crisis, an issue relating to the relationship between the built environment and its people. The roots of the crisis drift back to the 1970’s, through the Government’s implantation of a number of policies focussed on economic growth. Since then, many economically marginal New Zealanders have progressively found it a major struggle to afford a house (Basset & Malpass, 2013, p. 1). From the debating chamber to the media, this Reform Bill was the subject of much discussion. Many political party leaders and other stakeholders have had particularly large vested interests in this Reform Bill, and continue to do so around the topic of social housing affordability and supply. The line of debate has proven that housing issues today have become far more concerning than what they were in 2010. Thousands of families now currently remain on a social housing waiting list while living in poverty never imagined by New Zealanders. Many people believe the 2013 Reform has been a failure in improving the social housing crisis (Wesley-Smith, 2013).

Background to the Reform Bill

In April 2010, the origins of the Social Housing Reform Act 2013 began, through a report named ‘Home and Housed - A Vision for Social Housing in New Zealand’. It was released by the Housing Shareholders Advisory Group to help unravel the contextual issues of New Zealand’s social housing unaffordability. (Housing Shareholders Advisory Group p. 25). The findings of this report reopened the debate around New Zealand’s social housing issues, where it emerged that New Zealand’s social housing supply wasn’t meeting its then-current demand (Housing Shareholders Advisory Group p. 31). Alan Jackson, the chairman of the Housing Shareholders Advisory Group, began the debate in the media on the 13 of August 2010, stating that the ‘home and housed’ report pointed out concerns surrounding New Zealand’s inability to supply affordable social housing. Jackson stated the report identified solutions to rectify these concerns, such as forming better partnerships between the Government and community sectors and an income related rent subsidy for those who are economically marginal living in social houses (Jackson, 2010). These recommendations were approved by then-housing Minister Hon Phil Heatley in December 2010, agreeing that community housing agencies should not only look after housing policy issues, but also monitor the housing supply and demand (New Zealand Government, 2010).

Heatley reshaped the debate’s direction further on March 22nd 2011, stating that New Zealand’s social housing system failures were being caused by families living in state houses who were able to afford a market rent, hence preventing the economically marginal families on the social housing waiting list from having a place to live. Heatley stated that the Government had to work collaboratively with state housing tenants to help them find a new home (New Zealand Government, 2011). In late August 2012, the Public Health Association (PHA) introduced a new key aspect to the debate. Their main concern was that many families, particularly children, were living in overcrowded homes of “poor quality”, which will ultimately have a detrimental impact on a child’s education and health. The PHA urged Housing New Zealand to construct more homes (Smellie, 2012). On the 9 th of February 2013, newly appointed Housing Minister Nick Smith joined the debate, agreeing with the PHA, stating that there were significant social housing affordability issues for poverty stricken families in Auckland, Nelson and Canterbury. Smith further stated that only 56% of residents on a normal income in Nelson could afford to buy a house, and $3.3 million Government funded grants was set to help solve similar problems in Auckland and Christchurch (Roberts, 2013).

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The Social Housing Reform Act 2013

The key laws of the Social Housing Reform (Housing Restructuring and Tenancy Matters Amendment) Act 2013 enabled renewable tenancy assessments to be enforced on those tenants living in state houses who were financially capable of paying a full market rent. These assessments meant that the tenants would likely have to move out of their state houses to make way for families on the social housing waiting list. Secondly, the Act enabled income related rent subsidies (explained in Part 7 of the Act) to enable people who struggle to afford a house to pay with what is within their financial situation. Lastly, the proposed Act also saw responsibility passed on down to community housing providers to help get homes built, and get people in homes. The pinnacle aim of the Act was to “provide rental housing, principally for those who need it most” (Social Housing Reform Act 2013; CORT, n.d). It is important to note that all of these aspects of the Act Reform were recommendations from the 2010 ‘Home and Housed’ report (New Zealand Parliament, 2013).

Debate

The key players of the in-house debate were National Party speakers (Phil Heatley, Mike Sabin and Alfred Ngaro) who all supported the Bill, and those firmly against the Bill, namely, Dennis O’Rourke (NZ First), Moana Mackey (Labour), Kris Faafoi (Labour – Mana) and Jan Logie (Greens). The key arguments for National were that the Bill’s passing would mean that those in social housing will receive income subsidies from the Ministry of Social Development, which they believed would be a strong contributor to making social housing more affordable. The National speakers maintained that the Bill would help those on the social housing waiting list who are in ‘dire need’ of a house, which would be achieved by creating more community housing providers. The speakers opposing the Bill reshaped the debate by highlighting the disastrous social impacts of forcing state housing tenants out of their homes. In particular, both Logie and Faafoi explained that forcing the disabled and elderly tenants was essentially an ‘eviction’ of a cruel manner (New Zealand Parliament, 2013). Mackey added that affected state housing tenants would ‘live in fear’ on a weekly basis not knowing when they will be told to move out, and when they do, they will have ‘nowhere to go’. Mackey added that the consequences would be community displacement, and a negative effect on children’s education by having to move from school to school, similar to the PHA concerns in 2012 (Marlborough Express, 2013).

Labour Housing spokesman Phil Twyfork on the 2nd of October 2013 continued to shape the debate, reaffirming that the Government failed to consider what the effects of moving state housing tenants out of their homes would cause, such as ‘needless stress’ and ‘vulnerability’. Nick Smith brushed off the statement, maintaining that state houses aren’t currently being utilised in an appropriate manner (Marlborough Express). On the 19th of November 2013, the Bill was passed in Parliament. Phil Twyfork again stated his disappointment in the outcome, explaining that the Bill will ‘squeeze the life blood out’ of tenants who would be forced to move out (Radio New Zealand Newswire, 2013). Nick Smith emphasised the positives of what the Bill would do for those vulnerable families on the social housing waiting list, and said the amount of social houses would increase by 20% by 2018 (Scoop Media, 2013). Dennis O’Rourke and the Green Party again stressed their same issues about the negative impact on children’s education, health and adult job security that the Bill would create. O’Rourke also added a new component to the debate, as he criticised the Government for trying to attain a surplus demand in order to drive out state housing tenants, instead of working out ways to simply build new social housing units (Scoop Media, 2013a).

There was much debate in the following years relating to the 2013 Reform Bill. In April 2014, news writer Stacy Kirk entered the debate, attacking the Government for being slow in sorting out needs

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assessments in relation to working out tenant’s income related rent cost. She reported that the social housing waiting list had risen to 5000 people, including 1200 in South Auckland (Kirk, 2014). Conversely, Community Housing Aotea Director Scott Figenshaw was happy with the Reform Bill’s passing, stating that social housing organisations have so far been working smoothly with each other, but acknowledged that more partnerships between the Government and private landowners was required (Scoop Media, 2014). After the passing of a new 2015 Social Housing Reform Bill (Flexible Purchasing and Remedial Matters) on May 22nd 2015, New Zealand First believed the Government had hidden from the issues and instead handed them down to Housing New Zealand and the Ministry of Social Development to sort out (Scoop Media, 2015a).

Where are we at today in light of the Social Housing Reform Act 2013?

Policy surrounding social housing since 2013 has seen new reforms passed in an attempt to ultimately solve the crisis which is proving to be alarmingly slow and unsuccessful (Scoop Media 2015; Scoop Media, 2015a). 2016 has seen social housing hit terrible lows, and in serious need for action. A documentary called ‘Auckland’s Hidden Homeless’ aired on the 14th of May 2016 and showed many families with kids in South Auckland living in cars and in very cold garages, simply because of the general housing unaffordability, as well as slowness in which social housing homes were being built and therefore supplied (Wesley-Smith, 2013). This documentary outraged the community, prompting Newshub’s current affairs show, ‘The Nation’, to air a debate on the 18 th of June 2016 that included Penny Hulse (Auckland’s Deputy Mayor), Paul Majurey (Tamaki Collective Chairman), Pamela Bell (Prefab NZ), Hurimoana Dennis (Te Puea Marae Chairman) and Alan Johnston (Salvation Army Policy Analyst). All five agreed that families living in cars is ‘appalling’, and that the Government has to come up with a policy that restricts private land-banking, and that more vacant land is used for social housing construction (Newshub, 2016).

In many people’s eyes, the Social Housing Reform Act 2013 has appeared to be an utter failure, with serious action needing to be taken to remedy the social housing crisis. Unfortunately, this is proving to be no easy feat and remains to be a regular headline in the news today.

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References

Bassett, M., & Malpass, L. (2013). Priced Out: How New Zealand Lost its Housing Affordability. Retrieved on September 24, 2016

CORT. (n.d). Government Housing Reform. Retrieved on August 20, 2016, from http://cort.org.nz/government-housing-reform/

Housing Shareholders Advisory Group. (2010, April). Home and Housed A Vision for Social Housing in New Zealand. Retrieved on August 17, 2016, from http://www.baybuzz.co.nz/wp-content/uploads/2010/08/vision-for-social-housing-nz.pdf

Jackson, A. (2010, August 13). A struggle to ensure the neediest Kiwis are home and housed. Dominion Post, p. 7. Retrieved on August 19, 2016

Kirk, S. (2014, April 14). Social-housing reforms kick in. Nelson Mail, p. 5. Retrieved August 21, 2016.

Marlborough Express. (2013, October 2). Fears raised over all-inclusive reviews. Fairfax NZ. Retrieved on August 19, 2016.

Newshub. (2016, June 18). Interview: Penny Hulse, Paul Majurey, Pamela Bell, Alan Johnson, Hurimoana Dennis [video file]. Retrieved on July 13, 2016, from http://www.newshub.co.nz/tvshows/thenation/interview-penny-hulse-paul-majurey-pamela-bell-alan-johnson-hurimoana-dennis-2016061812#axzz4D0kOOvO1

New Zealand Government. (2010, December 9). Government acts on housing recommendations. Scoop Media. Retrieved on August 19, 2016

New Zealand Government. (2011, March 2011). Heatley: Address to Community Housing Aotearoa. Scoop Media. Retrieved on August 20, 2016.

New Zealand Parliament. (2013, May 16). Social Housing Reform (Housing Restructuring and Tenancy Matters Amendment) Bill — First Reading. Retrieved on August 23, 2016, from https://www.parliament.nz/en/pb/hansard-debates/rhr/document/50HansD_20130517_00000004/social-housing-reform-housing-restructuring-and-tenancy

Radio New Zealand Newswire. (2013, November 20). Government squeezing life blood out of Housing New Zealand – Labour. Retrieved on August 20, 2016.

Roberts, A. (2013, February 15). Social housing to tackle shortage. Nelson Mail. Retrieved on August 20, 2016.

Scoop Media. (2013, November 20). New era for social housing after bill passes. Retrieved August 19, 2016.

Scoop Media. (2013a, November 20). Social housing will cause social damage. Retrieved August 19, 2016.

Scoop Media. (2014, May 28). Community Housing Aotearoa welcomes new housing entity. Retrieved on August 20, 2016.

Scoop Media. (2015, May 22). Social Housing Reform Bill passed into law. Retrieved on August 21, 2016.

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Scoop Media. (2015a, May 22). Social Housing Not Our Problem Says National. Retrieved on August 21, 2016.

Smellie, P. (2012, April 12). Social housing findings vital. Fairfax NZ. Retrieved on August 20, 2016

Social Housing Reform (Housing Restructuring and Tenancy Matters Amendment) Act 2013

Wesley-Smith, M. (2016, May 14). Auckland’s Hidden Homeless [video file]. Retrieved on August 22, 2016, from http://www.newshub.co.nz/tvshows/thenation/aucklands-hidden-homeless-2016051411

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