Kiwibuild not affected by the budget

There were comments about the omission of Kiwibuild from budget announcements

Newstalk ZB: No money for flagship housing policy KiwiBuild in the Budget

There have been plenty of winners in today’s Budget, but one of the big losers has been the housing portfolio.

Apart from $283 million for transitional housing, and $197 million to boost emergency housing, there’s not much in budget 2019.

One thing in particular stands out is the Government’s flagship housing policy KiwiBuild, which has not received any additional funding.

@HenryCooke explains:

I don’t understand why people are writing about KiwiBuild not getting any new money like it is interesting. it wouldn’t have got any even if the policy was going well. the $2b envelope has been fairly firm and its problems are NOT down to a lack of cash.

Maybe you could make the argument whatever comes out of the reset will require new cash, but two billion dollars is a lot of effing money.

If anything the Budget shows Kiwibuild’s one great success so far – because the money ain’t being spent it is making the short term surplus bigger.

Stuff: Govt made right call in leaving floundering KiwiBuild out of the Budget

Fixing New Zealand’s housing affordability crisis was one of Labour’s key policy goals going into the last two elections.

But KiwiBuild has been conspicuously absent from the Government’s vocabulary in recent months, and yesterday’s Budget was no different.

The Government might not have given up trying to improve housing affordability, but it seems to have realised that KiwiBuild is not the answer to the problem.

The bulk of the additional $90 million per year allocated to Housing and Urban Development in the Budget will go towards emergency and transitional housing. It’s not sensible to throw good money after bad, so the silence on KiwiBuild is welcome.

But:

Minister Phil Twyford is not short of cash to use for KiwiBuild’s supposed “recalibration” anyway. Just 101 KiwiBuild homes have been completed – and the majority of those had already been financed by developers and were under construction before Twyford put a KiwiBuild sticker on them.

So it’s not like the Government has used much of the $2 billion of capital set aside for the programme. Even by July 2020, the Government only expects to have completed 1535 homes, which is woefully short of its initial target.

The fact that more than 10 per cent of the small number of completed KiwiBuild homes have failed to sell reiterates the policy’s poor design.

Kiwibuild was not a problem in this budget, it has been a problem since it was conceived.

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13 Comments

  1. Ray

     /  1st June 2019

    Miss Ardern promised/threatened a reshuffle after the Budget.
    More than one minister have reason to be nervous about that option.
    The only reason for optimism for them is the serious lack of talent and experience in the rest of caucus.
    A serious cull would really be the making of the PM’s reputation, so far she hasn’t put a foot wrong but after the Budget debacle there is a feeling this Government is all spin and seriously inept when it comes to delivery.

    Reply
    • David

       /  1st June 2019

      Arderns problem is that the most talented members of her caucus are already cabinet ministers and she could be taking a step back and cause herself more problems. Also she really doesnt have the spine for sackings so at best we may see a voluntary re allocating of portfolios.

      Reply
  2. Blazer

     /  1st June 2019

    ‘Apart from $283 million for transitional housing, and $197 million to boost emergency housing, there’s not much in budget 2019.’

    so only around 1/2 billion…then.

    Reply
    • David

       /  1st June 2019

      Its being boosted because Twyford/Ardern have failed on what was their most important policy. That boost represents a crisis for real people now in terrible circumstances thanks to Arderns inability to do anything.
      What they have achieved is rising rents for some, less rentals, less reason to supply more rentals and now we are stuck with the state/taxpayer providers and just to top it off you cant be evicted from a state house so how do you deal with appalling neighbours..you cant because you are stuck.
      Its an epic disaster.

      Reply
      • Blazer

         /  1st June 2019

        it is certainly a crisis….fueled by National denying reality for 9 years…because it was/is a profitable crisis for some!

        Reply
      • Alan Wilkinson

         /  1st June 2019

        Yes, a predictable and predicted epic disaster. Meanwhile Blazer has his head in the sand as usual.

        Reply
        • Blazer

           /  1st June 2019

          the Blue Ostrich can keep its head in the sand for …9 years!

          Reply
          • Pink David

             /  1st June 2019

            “the Blue Ostrich can keep its head in the sand for …9 years!”

            Before that 9 years, what were the good policies that meant there was not a housing crisis?

            Reply
            • Blazer

               /  1st June 2019

              Labour failed to act too.

              Key realised the danger and had a 4 point plan in 2008…did not follow through.
              He personally,like many M.P’s made a fortune from RE.

            • Kitty Catkin

               /  1st June 2019

              How many did and how much did they make ?

            • Pink David

               /  1st June 2019

              “He personally,like many M.P’s made a fortune from RE.”

              You seem very knowledgeable about this Provide the detail for how much Key made.

            • Blazer

               /  1st June 2019

              look at the sale of his Parnell property ,biggest earn of his…life.

            • Pink David

               /  1st June 2019

              Is this the bit where I point out to you how wrong you are? Again.

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