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Hon Mark Gosche Minister of Housing
'By April 1998 71% of applicants for food parcels at the Auckland City Mission cited market rents as the reason for applying.'
"Demand for Salvation Army food parcels fell when HNZ rents were frozen in 1996. But when the freeze was lifted in July 1997 demand for food parcels rocketed. The foodbank gave away 1,663 parcels in the first six months to 1997. However the first six months of 1998 brough a 53% leap to 2,540 handouts."
On the basis of market income, 73% of state housing tenants are poor, but only 27% of private renters. While net transfers (including the Accommodation Supplement) are more effective for state tenants, their final poverty incidence is still double that of private renters (Below the Line: An Analysis of Income Poverty in New Zealand. R Stephens, P.Frater and C Waldegrave)
'By April 1998 71% of applicants for food parcels at the Auckland City Mission cited market rents as the reason for applying.'
"According to the Salvation Army, rent costs for Housing New Zealand tenants have risen 106% since 1992. Inflation has only gone up 12% and private rentals by 23% ove the same period. Major Campbell Roberts described these facts as condemning National's 'big housing experiment which has been so disastrous.'
"A quarter of poor households pay 50% or more of their income on rent; 40% of households surveyed were overcrowded; and 49% had been unable to provide a meal for their families at least once in the three months befor the survey was published because they could not afford to."
"The market rents policy has seen state house rents double in some areas of Porirua in the five years between 1991 and 1996."
"Most (South Auckland) families are paying between 45 and 60% of their household income in rent. If you are getting $350 a week, that leaves you $100, $150 to pay for everything else. The way that people have coped is by sharing resources, by crowding in." Research by A Johnson, Manukau City Council cites the introduction of income related rents in 1991 as the catalyst for overcrowding in South Auckland.
"We see the proposed changes as a very positive and significant step towards addressing the enormous housing problems for low income earners. It definitely signals to us the Government's intention to put social objectives before profit."
Rents for the poorest families in the country have risen at almost 10 times the rate of inflation since the Government moved to market-related charges.
"New Zealand Council of Women has consistently lobbied for the reform of a market rental regime which allowed the cost of state rentals to rise to a level which could claim 50% of a tenant's income."
"New Zealand's decade-long epidemic of the deadly meningococcal disease is being driven by household crowding, says a major study. The three-year investigation is the first of its kind in this country to look at the risk factors for meningococcal disease."
"Monte Cecilia staff and volunteers, who provided housing advice as well as emergency accommodation, were greatly relieved the Government was committed to addressing the injustices facing those in housing need, Sister Mary Foy said.
"South Auckland residents are paying market rents to live in rat-infested, unhygienic and overcrowded state houses. A report for the National Health Committee finds that many Otara residents, particularly those in the area's 2200 state houses, are plagued by rats and cockroaches.
"A new report entitled Towards Wellbeing in Waitakere documents a feeling among West Auckland community groups that people on fixed incomes are the lowest socioeconomic groups and are worse off. "
"Market rents are a key trigger to all these other problems that we're dealing with."
It was an obvious anomaly that the most disadvantaged in our society were expected to pay market rentals. In many cases the Council was aware of people paying 30-50% of their income in rent. This left them with much less money to feed and support their families... We believe that this policy has had a very detrimental effect on the lives of the state house tenants and their families.
In the current climate where market rentals and profit dictate conditions under which our client families live,…we have noticed a significant increase in poverty among these families, and consistent hardship, not only in accessing suitable accommodation, but also in their capacity to provide for their basic needs.
"Our Emergency House is being overwhelmed by ex-Housing New Zealand tenants that have moved out of their tenancies because they could not sustain paying the high market rents. Many families are faced with rental arrears and homelessness.... Families paying 'market' rents are suffering grievously in other areas of their lives and often cannot afford to feed and clothe themselves."
"It is well documented that inadequate accommodation and overcrowding have serious consequences for the well being of our communities. This was recognised in the Roper Report on Violence, which saw the provision of good affordable housing as a significant factor in the reduction of crime.
The study found six factors associated with increased risk of meningococcal disease, the most important being household crowding which increased the risk of contracting meningococcal disease by more than 10 times, in the more extreme situations. New Zealand has been experiencing an epidemic of meningococcal disease, mainly serogroup B, since mid-1991. Last year 505 cases of meningococcal disease were reported, including 23 deaths. Rates are also consistently higher in the young, and those of Maori and Pacific Island ethnicity.
It may be coincidence but certainly the meningococcal epidemic took off about the same time that market rents came into force.
A report on Pacific Island housing found that Pacific Island households have an average of 4.3 people compared with 2.8 people in other households.
Nearly one in 100 Pacific Islander infants and one in 250 Maori contract meningococcal disease compared with one in 2000 European babies.
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