State houses were built by New Zealand's first Labour Government because overcrowding and escalating rents meant decent, affordable housing was not available for many low-income people.

Sadly, more than 63-years later the Labour-Alliance Government will be restoring income-related rents for the very same reasons. In doing so we will be delivering on a key commitmen to restore income-related state house rents.

In 1991 the previous Government introduced a market rents regime which saw state house rents soar.

Since 1992 Statistics New Zealand figures show that state house rents went up 106% while private sector rents rose 23%.

Market rent rises have left many state house tenants paying more than 50% of their income on rent. For nine long years low-income families who live in state houses have had less money to spend on healthy food, medicines, doctors bills, electricity bills, warm clothes - the list is endless.

Community advocates agree. In April 1998 71% of all people applying for a food parcel at the Auckland City Mission cited market rents as the main reason. Demand for South Auckland Salvation Army food parcels fell when state house rents were temporarily frozen in 1996 - but when the freeze was lifted went from 1,663 parcels to 2,540.

Last year Manukau City research found that most South Auckland families were paying between 45 and 60% of their household income on rent - people coped by crowding in.

Therefore it is sad but not surprising that the health of locals suffered.

South Auckland now has the highest rate of meningicoccal disease in the developed world. One in 100 Pacific babies and one in 200 Maori infants are likely to catch the life-threatening disease compared to one in 2000 European youngsters. Research released from the Ministry of Health last month shows that the disease - now an epidemic in our communities - is driven by overcrowded housing.

It is important to note here that the epidemic rise of meningicoccal disease began around the same time market rents were introduced.

It is clear that the previous Government's market rents experiment has failed and it has failed low-income, vulnerable families and communities most of all.

By December the experiment will be over.

All state rents will then depend on the income of a tenant.

Low-income tenants will pay no more than 25% of their income on rent while other rents will depend on a tenant's income. No ones rent will go up and no one will be worse off.

Low income households who rent privately will continue to receive an Accommodation Supplement to help pay their rents - this costs taxpayers more than $800 million a year. It demonstrates that this Government assists thousands of low income people to pay their rent - no matter where they live.

All state house tenants need to apply for an income-related state house rent and I would like to encourage all locals to do so.

You need to apply for an income-related rent to get one.

By December 1, 2000 the very people state houses were built for will be able to afford to live in them once more.

Ia Manuia