After initially suggesting it was interested in the idea of taking on government social housing, the Salvation Army has proved its critics correct – it has neither funds nor expertise for the job.
Is the government’s social housing privatisation policy in tatters?
The biggest private social services provider, the Salvation Army, has rejected a plan to take over a large portion of the portfolio – suggesting the privatisation agenda faces big head winds, if it goes ahead at all.
After initially suggesting it was interested in the idea, the Salvation Army has proved its critics correct – it has neither funds nor expertise for the job.
The emergence of the plan may be seen as a typical third term government’s over-reach into fringe policies, similar to the pattern of the last Labour government when radical social policies like the anti-smacking law were enacted.
The announcement from the Salvation Army was sent to journalists over the weekend with an embargo until 3am Monday morning.å
In spite of the lead time, none of the major political parties’ media teams appeared to have prepared official responses, which were largely confined to sound bites.
Labour Party leader Andrew Little described the rejection as embarrassing for the government.
The Salvation Army’s Major Campbell Roberts says the lives of tenants wouldn’t be improved, after it carried out a study to test its capacity to become a major social housing landlord.
He did not rule out participating in some kind of social housing initiatives with other groups.
The army has built 99 homes for elderly people in Mangere in partnership with other providers and government.
The organisation provides homes for 293 elderly people, 198 supportive accommodation beds and seven emergency houses.
Major Roberts and the army have criticised government social housing policy as recently as last month, claiming state provider Housing NZ is 4000 houses short.
Critics have questioned the benefit of National’s planned sale of state housing and why any charitable organisation would wish to take over the portfolio or a large part of it when Housing NZ has long-established systems to manage properties.
Devestating blow
It is one of National’s long-standing policies to reduce state involvement in social housing.
Prime Minister John Key announced the proposal last November.
Labour Leader Andrew Little says the government’s state house selloff has been dealt a “devastating blow.”
He says it underlines how the plan has been about ideology.
“When Labour asked Social Housing Minister Paula Bennett for the evidence for the policy, she replied that no such documentation exists,” he says in a prepared statement.
“The Prime Minister earlier said he would be amazed if the likes of the Salvation Army was hesitant to get involved if it saw a way to make money from the investment.
“If the Salvation Army doesn’t have the resources or the capacity to take over Housing NZ’s responsibilities, who does?
“The government’s housing policy is a fiasco. House prices are skyrocketing, first homebuyers are locked out of the market and not enough houses are being built.”
