Bubble wrap for council tenants - $15,000 rates rebates for luxury apartments in city centre.
The problem
• There is a huge housing need for tenants and families on low incomes. We have a waiting list of over 1000 in
Christchurch for council/state housing. Canterbury also has the second highest percentage growth in need for
council/state housing (48% increase from March 2018 to March 2019 - Press 1 July 2019)
• Approximately 300 council houses were destroyed in the earthquakes and well over 100 more have been lost since
then as the council has closed and demolished units rather than repair/refurbish them. Cecil Courts and the council’s
housing complex in Carey Street are the latest – the removal of another 52 units.
• Council now is working to “transfer” 428 council housing units to the Otautahi Community Housing Trust – out of
sight, out of mind. The last thing the current council wants to talk about is its legacy of neglect and indifference to
the suffering of families on low incomes.
• Council housing has been run down over 40 years of neglect and underinvestment with enormous levels of human
misery as a result. People have been left to suffer in quiet desperation. Congratulations to the courageous tenants who
have spoken out last week about the lack of insulation on their cold, damp units.
• The council has bowed to pressure and adopted a corporate-inspired policy saying no rates money will be used for
council housing BUT tens of millions has been spent on rates rebates for new private housing in the city centre – many
of them luxury apartments. Assuming she buys a new apartment, the current mayor will be a beneficiary of this policy
when she moves into the city centre next year. (Our OIA request shows $8.5 million in city centre residential rate
rebates from 2014 to 2018 – an average rebate of $15,000 per unit)
• The current council runs a policy of callous indifference and shameful neglect towards council housing while
forcing less well off ratepayers to subsidise wealthier ratepayers moving into new apartments in the city centre. So
it’s bubble wrap on the windows to keep out the cold for council tenants but $15,000 rates subsidies for luxury
apartments in the city centre.
Minto for Mayor Solution
• Use $220 of the $300 million grant from the government to rebuild and refurbish the council housing portfolio –
we would have 1000 additional units to what we have at the present time. This additional supply would reduce rents
across the city to the benefit of low and middle income earners.
• This means no rate increases to pay for the rebuild and upgrade but it does mean spending on the proposed new
covered rugby stadium would go to the back of the queue (the current council wants to spend the $220 million on a
stadium)
• End rates rebates for new housing in the city centre.
Under Minto for Mayor every child in Christchurch will have a warm, dry home BEFORE the rugby union gets a new stadium.