Government divvies out housing infrastructure fund

The Government has shared out its $1 billion housing infrastructure fund across five regions that it says are in critical need.

It'll help speed up 60 thousand new homes - but despite getting almost a third, Auckland's Mayor says it's nowhere near enough to keep up with demand.

It was a sea of high-viz vests as politicians of all levels clambered to be a part of the announcement.

Hamilton was first cab off the rank, soon to receive a new housing development.

"More homes for Kiwis… Lots more homes," Hamilton Mayor Andrew King says.

The money's not actually going towards building new houses, but the infrastructure that will support them - "all the big unsexy stuff that allows the sexy stuff to happen," Finance Minister Steven Joyce says.

Auckland gets $300 million for 10,500 houses in Whenuapai and Redhills.

Te Kauwhata will receive $37 million for 2600 homes. Hamilton will get $272 million for 8100 homes in the Peacockes Development.

Tauranga will be boosted by $230 million for 35,000 homes and two water treatment plants, and for Queenstown, $50 million for 3200 homes for Frankton Flats and Kingston.

But the $300 million announced today for Auckland barely touches the sides. The city's facing a seven billion dollar shortfall over the next decade.

"They're hard men to get money out of, finance ministers - always have been," Auckland Mayor Phil Goff says.

The fund is actually just a loan, however. It has to be paid back within ten years, and because Auckland's already reached its debt level it couldn't receive any more without having its credit rating being downgraded.

"If our debt to revenue ratio exceeds 265 percent we are liable to lose our credit rating and that will affect the credit rating of every council in New Zealand," Mayor Goff says.

Further funding for Auckland is set to be announced at the end of the month.