The review of Kainga Ora has been released and it shows without a shadow of doubt that Labour and anyone from Labour, couldn’t run a bath or anything else for that matter.
The report is damning and finds that the social housing system is not socially or financially sustainable.
Alarm bells are ringing over the financial situation of Kainga Ora – Homes and Communities, with Housing Minister Chris Bishop announcing a new chair will be appointed and the board will have a “refresh”.
The scathing review into the Government’s public housing landlord, led by former Prime Minister Sir Bill English, was released on Monday. It found the social housing system is not socially or financially sustainable.
The Government commissioned an independent review of Kainga Ora to look into the Crown agency’s financial situation, procurement and asset management. The other panel members are investment advisor Simon Allen and strategy advisor Ceinwen McNeil.
When Housing Minister Chris Bishop announced the review back in December, he said he was deeply concerned about the agency’s deficit and had worrying advice about its financial situation.
Kainga Ora is a large Crown entity with an annual expenditure of $2.5 billion and total assets of $45 billion.
A report by the Treasury and the Ministry for Housing and Urban Development found Kainga Ora’s level of debt had grown from $2.7 billion in 2018 to $12.3 billion in June 2023.
The review said the agency has been reporting operating deficits before tax over the past four years. The total level of debt is forecast to grow significantly in the coming years to reach a level of $23 billion by 2028.
“Advice released last year suggests that if Kainga Ora continues on its current trajectory, their debt would reach $28.9 billion by 2033,” Bishop said.
Newshub
And who was responsible for this?
Well, let’s start at the top: the two ministers in charge of this portfolio were Phil Twyford and Megan Woods. Those two fools should be barred from running anything more than a meat raffle at the Cossie Club.
Add the board chair, former Labour Party minister Mark Gosche, and the rest of the entire board which was populated with woke wombles. Thankfully they are getting the arse card for their economic sabotage.
It is almost criminal what these clowns have perpetrated.
Labour has never been and never will be responsible managers of taxpayers’ money.
Twyford and Woods were supposed to fix housing, firstly with Kiwibuild, then by building state houses. All they achieved building was a massive mountain of debt.
It also just goes to show that renaming an organisation with a Maori name does not in fact make anything better, and empirical evidence would suggest that it actually makes things worse.
This is yet more evidence that Labour are unfit to govern for the foreseeable future.
Cam Slater is a New Zealand-based blogger, best known for his role in Dirty Politics and publishing the Whale Oil Beef Hooked blog, which operated from 2005 until it closed in 2019. Cam blogs regularly on the BFD - where this article was sourced.
5 comments:
Who was responsible for this?
Don't forget:
https://kaingaora.govt.nz/en_NZ/about-us/our-structure/
Some forensic accounting probably wouldn't go amiss. It has been suggested elsewhere so why not?
A distant contact got into the state apartment building business after being offered an excessive price for a block of new flats. I was amazed how comfortable the aprtments. Far removed from the unlined concrete block sausage flats of the 1970s.Parasdise for the idle, except for the neighboursand no garage for the Legacy or Harley.
What really scares me is the question which, if any, Government Department or SOE would come out of a review conducted by Bill English with a clean bill of health? I suspect that the answer would be in the range of 0 - 5.
Cam Slater.
Sir, you are "asking Phil Twyford & Megan Woods to run a raffle at the local Cossie.."??
I would hope that they have had "some financial training in ticket sales & cash management" from some one other than The VC (Otago Uni) Grant Robertson!
And will they be accorded a Security Team (suggestion - Michael Wood & Kieran McAulty), to protect them from "would be could be delinquent's intent on armed robbery'?
I second the comment about the need for forensic accounting. I suspect that there have been a lot of dirty deals done under the last government that are likely to be found to be fraudulent and require prosecution.
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