Govt's social housing funding 'disastrous' - Labour

Govt's social housing funding 'disastrous' - Labour

Labour has rubbished the Government's claims it has a number of community providers ready to build more social housing.

The Government has upped the amount it was putting into social housing from 30 percent to 50 percent - with Paula Bennett confident providers will be able to fund the rest needed to build 750 new homes.

However Labour spokesperson for housing Phil Twyford says it's not a solution.

"We've got 42,000 people homeless or living in severe housing deprivation - and the best Paula Bennett can say, after months of putting out press releases and making announcements, [is that] they've only funded an extra 300 places. This is disastrous," he said.

The Salvation Army has said the Government funding only 50 percent is unrealistic, and maintains most providers don't have the cash or equity to meet that.

Twyford says he's convinced Paula Bennett is simply making up housing policies as she goes - and says it's just been one lie after another.

He says Bennett's failure to name the community providers she claims are ready to build is a clear sign she's making it up.

"If the Salvation Army says they can't make it work on 50 percent capital grounds, then I believe them," he said.