Govt turns back on social housing, prepares to axe 300 Kāinga Ora workers

Kāinga Ora is proposing to cut a net 321 roles in the teams which play a key role in delivering social housing for thousands of New Zealanders as it significantly slows the building of new houses.

Staff were informed of the proposed change today making crystal clear the Government’s plans to downsize the state’s role in providing housing for low-income families. Kāinga Ora told staff that the ‘Government has asked us to deliver housing in lower volumes’.

“We feel for all those dedicated workers who are impacted by this proposal – they have been doing great work for a great purpose which this government is failing to value in its ideological obsession with outsourcing a key state function,” said Duane Leo National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

“This is a sad day for the proud tradition of the State building houses for those who depend on the government to provide a secure and healthy roof over their heads.”

People who look likely to lose their jobs are those critical to the planning, design and construction of social houses, like architects, technical advisors, project coordinators, urban designers, spatial planners, and quality assurance experts. They work across the country with a third in Auckland and represent around 10% of Kāinga Ora’s workforce.

“Kāinga Ora has done an extraordinary job in its short life in boosting the construction of social houses with nearly 5000 built last year alone. Staff should take credit for their efforts in providing modern homes for those who need them most.”

A host of Kāinga Ora developments are now on hold as the Government shifts back to a focus on community-provided social housing. This follows a so-called independent review by former Prime Minister Sir Bill English and significant cuts in funding in Budget 2024.

Duane Leo said; “The Government has made much of the fact that the demand for emergency housing is falling as some families shift to private rentals and into social housing. Many of those social houses were built by the previous government.

“The confirmation of Kāinga Ora’s much reduced role will only mean uncertainty in the future for these families as the supply of social housing provided by the State falls.

“Once again we see the Government’s misplaced priorities laid bare – it would rather give a helping hand to landlords than a helping hand to those who need it most.”

Background – previous PSA statements on Kāinga Ora cuts

1 August 2024 – Govt axes specialist Māori housing roles despite housing crisis facing many Māori

2 May 2024 – Government cuts put 130 jobs on the line at Kāinga Ora, and 40 at HUD

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