British company Serco may become involved in the provision of social housing in New Zealand but Labour leader Andrew Little doesn't think it's a very good idea.
Serco has a $300 million, 10-year contract, to run Mt Eden Corrections Facility but the Department of Corrections has taken over day-to-day operation of the prison after a number of incidents.
The Nation reported today that Serco does not intend to buy state houses but has explored the possibility of supporting registered community housing providers.
It wants to be involved in providing systems used by managers of social housing and front-line staff.
"They've demonstrated they can't run the Mt Eden correctional facility - why would we be handing over the management of state housing to an organisation that has such a bad record," Mr Little told The Nation.
Mr Little says Housing New Zealand, which manages state-owned homes, is already run on a commercial model.
Several social housing providers in Australia have been mooted as buyers of state houses the Government intends to sell.