Govt writing off $3.2m meth debt

The Government is cancelling up to $3.2 million of debt racked up by hundreds of people wrongfully kicked out of Housing NZ homes over a flawed methamphetamine test.

But the debt write-off won’t cover social welfare payments for medical or dental costs, nor is compensation being offered for any private debt that followed the evictions.

Last year Housing NZ apologised after admitting to using a meth test that had little merit and led to about 800 tenancies being shut down. The test, 10 times lower than it should have been, was based on guidelines meant only for former labs.

The turnaround came after then Chief Science Adviser Sir Peter Gluckman told the Prime Minister not a single person had been found to have become sick from the residue left over when someone smoked P.

Many of those evicted then built up debt after Ministry of Social Development (MSD) payments for issues including emergency housing, moving costs, storage, replacement furniture — they had to abandon belongings in the mistaken belief that they were contaminated — and bond money for a new tenancy.

Social Development Minister Carmel Sepuloni yesterday said the MSD would write off any debt directly related to the wrongful evictions.

“The debt is a burden for many and has caused distress for those who lost their homes through no fault of their own,” Sepuloni said.

MSD would also refund any money people had already paid back. MSD hoped to have those payments completed by mid-year. Cabinet has agreed those payments would not lead to a reduction in any benefit payments for 12 months.

An MSD team has identified about 900 people who went to it for support after being wrongfully evicted.

Auckland Action Against Poverty welcomed the debt write-off, but called for a “generous and compassionate” approach.

A spokeswoman for Sepuloni said there were no plans to compensate for private debts.