National asked to support vulnerable Christchurch tenants
16/02/09 13:40 Filed in: News Releases
There could be help for Christchurch tenants fighting Council-imposed rent increases if National picks up a proposal for government assistance that was prepared for the previous Labour-Progressive Government, Wigram MP Jim Anderton says.
Tenants have successfully opposed the rent increase in court, but the Christchurch city’s incumbent right-wing majority has now signalled it could again try to substantially increase rents or even abandon social housing altogether - leaving two and a half thousand vulnerable tenants with nowhere to live unless central government steps in.
Jim Anderton says the government should step in to help because it would have to pick up some of the costs of a rent increase anyway, including through increased Accommodation Supplement payments.
He today released a business case he sent to the previous finance minister Michael Cullen on behalf of Labour and Progressive Christchurch MPs after a thorough review of the Council’s plan to raise rents to help pay for refurbishment of the Council’s social housing.
The business case was sent by Jim Anderton and Labour MPs Ruth Dyson, Lianne Dalziel, Clayton Cosgrove and Tim Barnett. It sought a net government investment of $29 million over ten years. It would have reduced the rent increase from 24 per cent to ten per cent and allowed for the replacement of over three hundred homes and a continuous refurbishment programme.
He also released Treasury advice on the report that says it should be considered as part of Budget 2009. The Treasury response says there is no evidence that the Christchurch City Council ever approached the government itself to ask for the necessary funds.
Jim Anderton says the Council’s behaviour has created a huge problem, and it’s now up to the National government to help tenants out.
“Council never approached the government before it announced the rent increase. Its threats to abandon social housing are very worrying for some of the city’s most vulnerable residents.
“The net cost to the government of stepping in to help is not unreasonable if it is looked at in the context of a twenty year programme of investment to help very vulnerable people. Over that period, the net cost to the government of $29 million averages around $1.5 million per year.
“The National government has indicated it wants to shoulder some of the costs to local body ratepayers of providing social services, and it has also indicated a willingness to see housing expanded as a response to the global financial crisis. One obvious solution is to assist the council directly to make this investment.
“I hope Gerry Brownlee, as the senior Christchurch government MP, will take over the role of advocating within his government for vulnerable Christchurch city tenants, and I have sent the file on the work done so far to him,” Jim Anderton said.
Tenants have successfully opposed the rent increase in court, but the Christchurch city’s incumbent right-wing majority has now signalled it could again try to substantially increase rents or even abandon social housing altogether - leaving two and a half thousand vulnerable tenants with nowhere to live unless central government steps in.
Jim Anderton says the government should step in to help because it would have to pick up some of the costs of a rent increase anyway, including through increased Accommodation Supplement payments.
He today released a business case he sent to the previous finance minister Michael Cullen on behalf of Labour and Progressive Christchurch MPs after a thorough review of the Council’s plan to raise rents to help pay for refurbishment of the Council’s social housing.
The business case was sent by Jim Anderton and Labour MPs Ruth Dyson, Lianne Dalziel, Clayton Cosgrove and Tim Barnett. It sought a net government investment of $29 million over ten years. It would have reduced the rent increase from 24 per cent to ten per cent and allowed for the replacement of over three hundred homes and a continuous refurbishment programme.
He also released Treasury advice on the report that says it should be considered as part of Budget 2009. The Treasury response says there is no evidence that the Christchurch City Council ever approached the government itself to ask for the necessary funds.
Jim Anderton says the Council’s behaviour has created a huge problem, and it’s now up to the National government to help tenants out.
“Council never approached the government before it announced the rent increase. Its threats to abandon social housing are very worrying for some of the city’s most vulnerable residents.
“The net cost to the government of stepping in to help is not unreasonable if it is looked at in the context of a twenty year programme of investment to help very vulnerable people. Over that period, the net cost to the government of $29 million averages around $1.5 million per year.
“The National government has indicated it wants to shoulder some of the costs to local body ratepayers of providing social services, and it has also indicated a willingness to see housing expanded as a response to the global financial crisis. One obvious solution is to assist the council directly to make this investment.
“I hope Gerry Brownlee, as the senior Christchurch government MP, will take over the role of advocating within his government for vulnerable Christchurch city tenants, and I have sent the file on the work done so far to him,” Jim Anderton said.