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Executive Summary

Treasury has recently taken on the role of monitoring Housing New Zealand Corporation (HNZC) and the Tāmaki Redevelopment Company (TRC). We report directly to the Minister of Finance and Minister of Housing as the Ministers with responsibility for these entities.

The Minister of Finance has asked that Treasury take a more 'active' role in monitoring the housing entities. You will receive further advice on this in due course. In the early stages our focus has been on building open and collaborative relationships with the housing entities and the Ministry of Business, Innovation and Employment (MBIE) who retains responsibility for housing policy advice. We are also working on understanding the entities' business and performance, as well as developing an annual monitoring plan.

Housing New Zealand Corporation

There are some particular challenges ahead for the Government and HNZC.

  • The Social Housing Reform Programme (SHRP) could result in significant change for the shape and direction of HNZC. The reform envisages “a less dominant role for HNZC, where non-government social housing providers enter the market, and/or existing providers expand their operations, and HNZC makes more efficient use of capital” [2]
  • The location and size of HNZC's stock is not well matched to demand. HNZC has developed a 10 year Asset Management Strategy (AMS) to improve the quality of the stock, make better use of its land holdings and configure its stock to better meet future demand.
  • HNZC's Canterbury housing stock requires significant repair and upgrade following the earthquakes and there are opportunities for HNZC's activities to assist with the wider residential rebuild.
  • There is an underlying question about the sustainability of the HNZC model, and the adequacy of the level of return given the entity's social and commercial objectives.

Tāmaki Redevelopment Company

TRC is a newly established entity charged with the regeneration of the Tāmaki area in Auckland. [2]. However, this is a large and complex project with the potential for a high level of Crown investment and a large number of risks. The Crown and the Auckland Council are both shareholders in the TRC which is listed on Schedule 4 of the Public Finance Act.

TRC's work is set out in two stages. Initially it is responsible for providing shareholders with a Strategic Framework and Business Case for regeneration. Stage 2 is the physical regeneration of the area which will only occur with Cabinet and Auckland Council approval. MBIE is responsible for leading the Government's policy input to the TRC's work and advice to Government.

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