Labour's claims that Housing New Zealand is verging on bankruptcy are irresponsible and stupid, Housing New Zealand Minister Bill English says.
Labour leader Andrew Little and Finance Minister Bill English Photo: RNZ
In papers released to Labour under the Official Information Act, Housing New Zealand chair Adrienne Young-Cooper told Mr English a variety of factors were placing pressure on the agency's balance sheet.
She warned the agency would be facing increasing and significant financial constraints, affecting both its operational performance and its capacity to deliver growing housing supply.
The agency also said it was likely to exhaust its cash balance by February 2017 - a statement that Labour and the Greens read as the corporation saying it would go broke.
Labour's Phil Twyford put that questionable interpretation to Mr English in Parliament today.
"Isn't it pure incompetence to have driven a $20 billion organisation to the brink of insolvency and worse to have asset-stripped the very agency that should be leading the government response to the homelessness crisis?"
Mr English replied that even though the opposition knew they were wrong, it did not surprise him that they were continuing to push a line that was incorrect.
"Because they seem to have almost no understanding whatsoever of the financial situation of Housing New Zealand, which has $20 billion worth of assets, $4 billion worth of debt and not much short of a billion dollars in cash-flow. It's in fine shape."
Mr Twyford persisted.
"Can he confirm that his musings about building 30,000 houses, on what is now state housing land, is not actually an affordable housing programme, it's just a desperate sell-off of land and housing to try and stop Housing New Zealand from going bankrupt?"
Mr English rubbished that claim.
"That's a ridiculous assertion about Housing New Zealand and I know that won't stop the member making it vigourously, no doubt for as long as he thinks anyone might be listening, but it's just verging on stupid actually."
Green Party co-leader James Shaw also weighed in.
"How much more money will he have to give to Housing New Zealand so that it can continue to operate after February 2017?"
Mr English was quick to clarify.
"None, to allow Housing New Zealand to continue to operate, it can easily do that and reports that it is 'going broke' are simply wrong."
Mr English said as the agency ramped up its building programme, the government would fund it as necessary.
