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Fenton Street in Rotorua, where motels are being used as emergency housing (Image: RNZ)
Fenton Street in Rotorua, where motels are being used as emergency housing (Image: RNZ)

The BulletinSeptember 8, 2022

The wicked problem that is our housing crisis

Fenton Street in Rotorua, where motels are being used as emergency housing (Image: RNZ)
Fenton Street in Rotorua, where motels are being used as emergency housing (Image: RNZ)
newsletter

A story for TVNZ’s Sunday on the use of motels in Rotorua as emergency housing unleashes a political blame game and highlights the vulnerability of those who just want somewhere to live, writes Anna Rawhiti-Connell in The Bulletin

 

Shine gone from Golden Mile

I slammed my laptop shut after watching Golden Mile, Kristin Hall’s exposé on the use of motels in Rotorua as emergency housing and made a noise that prompted a colleague to ask if I was ok. “It’s just so grim,” I said. Grim but important work that I watched and went home to my house and its heat pump. In 2018, prime minister Jacinda Ardern addressed the United Nations and talked about facing “wicked problems”. Wicked problems are those that do not have a simple solution owing to complexity or interconnectedness, and where solving one aspect of the problem may create other problems. At the end of 2018, 10,712 households were waiting for state or social housing. As of August, 27,036 households are now on the public housing waitlist. Housing is one of the most wicked problems facing New Zealand and Hall’s story is an example of just how wicked it is.

Profiting from misery

If you haven’t yet watched Golden Mile, do. Duncan Greive has recounted his experience of watching it, reminding us of the power of television current affairs programmes to drive the news agenda. Hall’s story details allegations of gang members working for the private security company working in the motels. The company is now under investigation and is run by the CEO of the charity Visions of a Helping Hand, a provider of emergency housing in the area and the focus of Hall’s story. It has been paid nearly $14m by government departments to provide emergency housing. It operates two motels in Rotorua and is contracted to look after eight more. By the end of June this year, the government had spent $1b on emergency housing. Just 83 providers (out of 1540) accounted for half of that spend. Ultimately, there’s an underlying sense that there is profit to be made from other people’s misery and in offering piecemeal solutions to wicked problems.

Te Pāti Māori and National call for an inquiry 

The story has kicked off a political blame game. The government maintains it’s not an ideal situation but motels are better than a car or garage. Not an incorrect point but tenants featured in Hall’s story actually moved into their cars to avoid being intimidated and harassed by the security guards. The Ministry of Housing and Urban Development says it’s “satisfied” that Visions of a Helping Hand is delivering on its contract. Te Pāti Māori has called for an inquiry and National have joined them in that call. Opposition leader Christopher Luxon says the government is in denial and that they need to use community housing providers to increase housing supply. The government has said they were dealing with a state housing shortage when they took power in 2017, while Luxon says National aren’t to blame. The Human Rights Commission is horrified and wants to talk to those living in the motels in Rotorua.

40 kilometres away, workers have gone without pay for weeks

Not far from Rotorua is Kawerau, where workers at the Essity paper mill were locked out a month ago and are now negotiating with the multi-billion dollar corporation for a pay rise to help keep up with inflation. The spectre of poverty and emergency housing looms there too, the area becoming something of a microcosm for our wicked problems. Stewart Sowman-Lund visited the town to find the mill quiet, the gates locked. One woman he spoke to said that she had friends who worked at the mill. “It’s sad,” she said, lifting off her sunglasses. “I think they’ve had to seek emergency housing.” Sowman-Lund will have a report from the Rotorua mayoral candidate debate tomorrow where emergency housing was discussed.

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Is our tax system egalitarian or fair? (Image: Getty)
Is our tax system egalitarian or fair? (Image: Getty)

The BulletinSeptember 7, 2022

Urgent need for income tax brackets to be reviewed

Is our tax system egalitarian or fair? (Image: Getty)
Is our tax system egalitarian or fair? (Image: Getty)
newsletter

Following last week’s furore over a poorly handled and wonky bit of tax policy, there’s renewed energy behind the need to talk tax, writes Anna Rawhiti-Connell.

 

Let’s just copy and paste Australia’s tax code

Tax. It’s everywhere I turn right now. Maybe an indictment of my reading habits, but that wonky bit of Kiwisaver tax policy from last week seems to have kicked off wider conversation about taxes. I’ll be honest and say that tax usually feels like a lumpy, complicated thing mere mortals aren’t meant to comprehend but instead are left to just grumble about paying. But I pay taxes and have done since I first started working, assembling inedible ham salads at the local Cossie Club. We all do. “Death and taxes” is a truth. That’s why I’m leading with Hayden Donnell’s accessible and funny piece on The Spinoff this morning where he proposes that we simply copy and paste Australia’s tax code. I do not know if he is right but it’s not just a laugh – he makes several highly readable points and has experts to back him up.

Why should tax debate remain the domain of specialised experts?

Donnell freely admits he is “the guy who spent 2018 trying to get the Big Fresh Animatronic Fruit & Veggies to Te Papa” but why should tax debate remain the domain of specialised experts? A Herald opinion piece (paywalled) from actual tax experts yesterday on the Kiwisaver issue calls for “informed, considered discussions about what tax policy means for our collective futures”. It does also talk about “highly technical policy”. If you follow Bernard Hickey’s logic, having only these highly technical policies as a means for the government to generate revenue is indicative of 30 years of failure on tax. Hickey lays the blame at David Caygill’s feet for his “inability to complete the ‘pure’ trifecta of a simple, exception-free income tax”.

Earnings under $18,200 not taxed in Australia

One of the experts backing Donnell is economist Shambael ​​Eaqub. We got him to run the numbers on importing Australia’s tax code. One of the main features of that system is that earnings under $18,200 are not taxed. Donnell’s central thesis is that our tax system is not remotely egalitarian or fair and that it penalises our lowest earners. Eaqub agrees and thinks simply lifting Australia’s income tax rates would be relatively affordable, including the $18k threshold of untaxed earnings. $3.3b to be exact. Eaqub argues the new system would reduce poverty and its resulting welfare and healthcare costs. Donnell and Eaqub aren’t alone in their tax chat. On Newsroom yesterday, Gareth Hughes was arguing for a reduction in GST. Economist Susan St John made the same call last week.

Urgent need for income tax brackets to be reviewed

As well as lending Donnell support, tax expert Terry Baucher (who once spent his precious and expert time trying to explain tax to me), took up his own tax cross yesterday. Baucher is calling for an urgent review of income tax thresholds or tax brackets. Baucher argues that tax brackets have not changed in more than a decade and that’s too long, especially in the current high-inflation environment where wages are growing, pushing more people into higher tax brackets. Baucher called the government’s reluctance to move the thresholds “plain cynicism”. Lifting income tax thresholds is, of course, part of the tax policy the National party floated in March and then got slightly muddled on. Never thought I’d say this but bring on the election year tax policies.