Govt resists tax to ease homeless crisis
The Government has ruled out an ‘‘empty homes tax’’ to battle homelessness in Auckland.
The city’s homeless crisis is expected to be worse than ever this winter, and and part of the blame has been directed at Housing NZ for boarding up state homes months in advance of plans to redevelop sections.
As a result ‘‘there are people sleeping in cars tonight who didn’t have to,’’ said Salvation Army social policy analyst Alan Johnson.
Meanwhile, Christchurch Progressive Network convenor John Minto was urging the Government to consider an empty homes tax of the same kind adopted in Vancouver, Canada.
It would penalise landlords who keep homes empty.
The Government’s announcement on Friday of $100 million for homelessness, with $37m allocated to finding 1500 new places by the end of winter, was ‘‘poor use of taxpayer money,’’ Minto said.
‘‘It is stupid for the Government to spend tens of millions on motel accommodation for homeless families when we have 33,000 empty homes in Auckland.’’
In June 2016 Auckland had 33,000 homes vacant – a vacancy rate of 6.6 per cent, higher than any Australian city, he said.
‘‘An empty homes tax would mean large numbers of ‘ghost’ homes would be available to rent at a time when homes are desperately needed.’’
Housing Minister Phil Twyford said the Government was not considering an empty homes tax at this stage.
‘‘The Labour-led Government has a comprehensive plan to address the housing shortage including cracking down on offshore speculators and changing rules around negative gearing,’’ Twyford said.
He also would not be asking Housing NZ to change its policy around leaving its homes empty months ahead of redevelopments.
‘‘Decisions around moving tenants while state houses are refurbished is an operational matter for Housing NZ.’’
Monte Cecilia Housing Trust chief executive Bernie Smith said Housing NZ should stop demolishing homes until it was ready to build replacements.
Housing NZ asset development group general manager Patrick Dougherty said the agency planned to deliver about 5000 new state houses up to 2019-2020.
Holdups could be caused by redesigns, requests for further information, the consent process and safe demolition of old buildings.
Moving tenants at the right time was an added complexity.