A lofty promise becomes a hot potato: New Zealand gets a new Housing Minister!

Yesterday afternoon, New Zealand Prime Minister Jacinda Ardern announced a Cabinet reshuffle. Most notably, Housing, Urban Development and Transport Minister Phil Twyford lost the housing portfolio.

 

Former Energy Minister Megan Woods became the new Housing Minister, taking the KiwiBuild hot potato off Phil Twyford’s hands.

 

Prime Minister Jacinda Ardern

 

Kris Faafoi, who grew up in a state house, was promoted to Cabinet as Associate Housing Minister, responsible for public housing and addressing homelessness. Nanaia Mahuta was also appointed Associate Housing Minister, responsible for Māori housing.

 

Although former Housing and Transport Minister Phil Twyford was stripped of the housing portfolio, he retains his Urban Development and Transport portfolios and remains in Cabinet.

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Furthermore, although losing the housing portfolio looks like a demotion, Twyford has been given responsibility for economic development and will work closely with Regional Economic Development Minister Shane Jones.

 

Phil Twyford’s achievements and failings

 

While in opposition, Phil Twyford blamed Chinese people for Auckland’s persistently high house prices, arguing that Chinese property speculation was driving prices up.

 

This clearly conflates two issues, using ethnicity to explain the wealth gap. If there were no Chinese people, would wealthy Australians and Kiwis stop speculating in property?

 

Phil Twyford has worked so hard since taking charge of KiwiBuild that it took him just a year to wreck Labour’s grand plan to build 100,000 homes in 10 years.

 

To be fair, however, KiwiBuild’s failure cannot simply be attributed to Twyford’s competence.

 

Unless problems such as expensive land and building materials, construction worker shortages and inefficient housebuilding are resolved, even a National government could not achieve the target of 100,000 affordable homes in 10 years.

 

A promise of 100,000 homes in 10 years: the rosy vision offered during the election has now become a hot potato!