5. Question No. 5—HousingDANA KIRKPATRICK (National—East Coast) to the Minister of HousingQuestion No. 5—Housing5. DANA KIRKPATRICK (National—East Coast) to the Minister of Housing: What recent announcements has he made regarding Kāinga Ora?Hon CHRIS BISHOP (Minister of Housing): Yesterday I announced that the Government has launched a review into Kāinga Ora fulfilling our first 100 days' commitment to commission an independent review into the State housing provider's financial situation procurement and asset management. We've long been concerned about the performance of Kāinga Ora; whether they're operating efficiently and effectively. Their performance directly impacts the New Zealanders who rely on them for housing but also the Government books. The independent review will identify ways to improve their performance and value for money and manage the impact of Kāinga Ora on debt in the Government books.Dana Kirkpatrick: What concerns does he have on Kāinga Ora's financial performance?Hon CHRIS BISHOP: Many. Treasury and the Ministry for Housing and Urban Development have reported that Kāinga Ora's level of debt has grown from $2.7 billion in 2018 to $12.3 billion in June of this year. Advice publicly released already suggests that if Kāinga Ora continues on its current trajectory the debt would reach nearly $29 billion by 2033. These increases are concerning and I'm also worried about the operating deficit which is $520 million in 2022-23 and is forecast to continue to increase. It's important to note the deficit has a direct impact on the operating balance before gains and losses (OBEGAL) and continues to put pressure on the return to OBEGAL surplus.Dana Kirkpatrick: What reviewers have been chosen to undertake this review and why?Hon CHRIS BISHOP: We have put together a panel of three expert reviewers with a deep understanding of the social housing and the wider housing sector. Former Prime Minister the Rt Hon Sir Bill English will lead the review team; joining him are Simon Allen and Ceinwen McNeil. These three experts will provide a targeted and focused review to Ministers to report back in March next year. Rt Hon Winston Peters: Could the Minister urgently put out a press statement explaining what Kāinga Ora means or papa kāinga means because there are journalists out there asking members of Parliament what it means and this is a desperate situation that we've reached at this point in time?Hon CHRIS BISHOP: Well I am not a member of Parliament or a Minister who is known to not want to put out press releases. I enjoy putting out press releases and I intend to put out many more about the woeful state the Government—SPEAKER: No that's good—that's enough. Thank you that's enough. Dana Kirkpatrick.Dana Kirkpatrick: What are the next steps for this review and when does he expect it to be completed?Hon CHRIS BISHOP: This is a significant body of work and a priority for our new Government. The Kāinga Ora board is being consulted on the terms of reference right now and they will be released later this week. We will receive the first report back in March 2024. We are all looking forward to receiving the findings. Tamatha Paul: Supplementary.SPEAKER: Um—Tamatha Paul: Tamatha Paul. Wellington Central.SPEAKER: Sorry just diving for my sheet. Let me get your name—my apologies for that. Hana Maipi-Clarke—Tamatha Paul: Tamatha Paul not Hana-Rawhiti but thank you for the compliment. SPEAKER: Tamatha Paul. Look sorry members can I just apologise to the member for that. There are quite a few new names to know and quite a few new faces and I'm doing my very best. Tamatha Paul: Will he commit to ensuring no net loss of State housing in his term?Hon CHRIS BISHOP: Our intention as a Government is to grow the supply of social housing because the wait-list for social housing quintupled under the last Government and there are thousands of New Zealanders in need of greater support. Tamatha Paul: My question was actually about State housing not social housing which are two different things. Will he ensure—SPEAKER: Don't do that. Just ask a question.Tamatha Paul: Will he ensure that projects under way including Arlington which intends to deliver 300 public houses in Wellington Central will be completed and not scaled down?Hon CHRIS BISHOP: Yes our intention while the review is under way is that the current work programme of Kāinga Ora continues. I'm happy to have a conversation with the member about specific Wellington projects because again there is a significant need in the Wellington region for social housing because of the woeful state the last Government left social housing in Wellington.