New Leadership and Reforms for Kāinga Ora Following Review
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- Government to implement significant changes to Kāinga Ora after critical review.
- Review led by Sir Bill English highlights financial and operational issues.
- New chair Simon Moutter appointed, board to be refreshed by July.
The Government is making “immediate” changes to Housing New Zealand (Kāinga Ora) following a critical review led by former Prime Minister Sir Bill English. The review highlighted serious issues within the agency responsible for managing public housing and providing tenancy services.
“We have seen a lack of transparency and accountability in the social housing system, coupled with a poor understanding of tenant outcomes,” the review stated. It found that Kāinga Ora is not financially viable under current settings, with limited attention to value for money and opaque cost and revenue apportionment making it difficult to identify financial drivers. The agency’s deteriorating performance and the risk to its asset maintenance and renewal capability were also noted.
Prime Minister Christopher Luxon and Housing Minister Chris Bishop announced the changes from Parliament on Monday. Bishop highlighted the review’s findings, stating, “The review found that Kāinga Ora has had easy access to debt but insufficient focus on fiscal discipline, leading to growing annual losses and a deteriorating financial situation.” Bishop also confirmed the Government would be scrapping KiwiBuild and conducting a broad review of all housing programmes.
Among the seven recommendations made for Kāinga Ora, the Government will expect the Board to develop a “credible and detailed plan to improve financial performance with the goal of eliminating losses.” Another recommendation involves “refreshing” the board by July. Bishop emphasized the need for Kāinga Ora to focus on fiscal sustainability, value for money, and a back-to-basics approach to its essential functions.
Simon Moutter has been appointed as the new chair of Kāinga Ora, starting June 4. Moutter, with extensive change leadership experience at Powerco, Auckland International Airport, and Spark NZ, where he won the Deloitte Top200 NZ CEO of the Year in 2017, replaces former chair Vui Mark Gosche, who resigned in March.
The Government also plans to issue simplified direction to Kāinga Ora and align contractual arrangements across Kāinga Ora and Community Housing Providers. Bishop said that other proposed changes, including adopting a model where the Government becomes an active purchaser with a social investment approach, will be considered in the coming months.
Labour’s housing spokesperson, Kieran McAnulty, criticized the Government for not committing to fund the income-related rent subsidy (IRRS) post-2025, stating it created uncertainty and project cancellations among community housing providers and Kāinga Ora.
The independent review, initiated as part of the Government’s 100-day plan, highlighted that Kāinga Ora’s operating deficit was forecast to grow, driven by interest on debt-financed capital investments. The agency’s debt is expected to peak at $28.9 billion in 2033, with $8.9 billion still owed by 2081. Bishop underscored the need for significant changes to ensure Kāinga Ora’s financial sustainability and improve housing outcomes for New Zealanders.