The New Zealand Housing Strategy for the 21St Century
Total Page：16
File Type：pdf, Size：1020Kb
HOUSINGNEW ZEALAND MORTGAGE HOUSING & HOUSING STRATEGY TRANSACTION FOR 21ST CENTURY IN CHINA The Remaking of Housing Policy: The New Zealand Housing Strategy for the 21st Century By David C. Thorns, Director of the Social Science Research Centre and Professor of Sociology at the University of Canterbury (New Zealand) Introduction of New Zealand’s welfare development to its Through these policies New Zealand was ‘second way’, which was constructed more firmly integrated into the global Analysing shifts in policy requires us to around a strong neo liberal agenda. The economy in a way that was thought would appreciate that they are embedded in the current post 1999 agenda, then can be improve its competitive edge and internal past as well as in the present. Parsons in a interpreted as New Zealand’s version of a efficiency. Improved productivity would recent examination of policy development ‘third way’ influenced by movements in then lead to faster rates of economic growth argues that “it is existing policies which set other social democratic societies and and improved overall financial performance. the agendas for new problems and provide particularly articulated by the Blair Thus, like a number of other developed the discourse within which problems will be Government in the United Kingdom and the western countries during this period, state constructed” (Parsons 1995:231). Clinton Administration in the USA (Dalziel assets were privatised, new forms of Understanding the development of New 2001, Giddens 2001). management for state enterprises were Zealand’s housing strategy for the 21st introduced creating state owned enterprises century requires us to understand both the In order to explore these changes first an (SOE’s), to be run as private companies and past transformations that occurred through identification of the significant return a dividend to the government. In the the 1980s and 1990s and the future restructurings that took place in the 1980s public sector new management practices predictions with respect to the shape of and early 1990s will be undertaken. This will were introduced bringing in a more New Zealand’s future population, tenure show how these led to a remodeling of ‘corporate’ style and new performance shifts and increasing diversity (NZ Housing housing policy. Second, the post 1999 based employment contracts. The chief Strategy, 2004, 2005). moves towards a more interventionist and executives of the new SOE’s and Ministries social development state and a were now on an annual performance Housing policy through the 1980s and reconfiguration of housing policy will be agreement that set the objectives they were 1990s was reshaped, as part of the wider examined. Finally, the question of whether to deliver over the next year. The result was restructuring of New Zealand’s welfare this marks a return to the pre-1984 set of a shift within the public sector to an state, economic strategies and social arrangements or a new form of state emphasis on mission statements, goals, policies that took place at that time. At the practice and policy engagement will be strategic plans and performance measures. beginning of the 1980s, New Zealand was addressed. Such practices have tended to “erode trust coming to the end of a quite sustained between managers and workers and has period of extensive social and economic spawned a new industry of reporting, intervention initiated by the Labour Neo Liberal Turn 1984 to 1999 appraisal and “audit explosion’ (Low, government of the 1930s. This particular 2005:30). pattern was broken in the radical agenda of The reforms of the 1984 to 1999 period economic reform followed by the fourth were radical and extensive and led to the The new regime of state practice that was Labour government, which came into power dismantling of many of the central created was grounded in the idea of the in 1984 (Boston and Holland 1990, Thorns components of the welfare state that had “market” and of the sovereign consumer. 1992). Some analysts have described this been a part of New Zealand’s social and The state was “hollowed out” with central set of changes as a shift from the ‘first way’ economic development from the late 1930s. functions and activities contracted out to 20 HOUSING FINANCE INTERNATIONAL – June 2006 HOUSINGNEW ZEALAND MORTGAGE HOUSING & HOUSING STRATEGY TRANSACTION FOR 21ST CENTURY IN CHINA other agencies both private and reform strategy. On many indicators New through to housing benefits to assist with voluntary/community based. This process Zealand was in fact worse off in 1999 than it rent for low income households. Some new led to the blurring of the boundaries of had been in 1984. The initial impact appears initiatives were added to encourage home activity and policy delivery between the to have been had been to depress rather ownership – still seen as the ideal housing state, private and voluntary sectors. The than enhance economic performance with option- in the form of sweat equity, and state thus adopted new ways of shaping the economic growth virtually static for the first home ownership savings schemes (National outcomes of its policies with an emphasis 8 years of the reforms only recovering in Housing Commission 1988). Further the on the “governance” of activities rather than 1992 which though above the pre reform Housing Corporation, a multipurpose their direct provision (Rhodes 1997). The rate of 2.7% annually was at (3.3%) still organization, which both ‘funded’ and state thus becomes in some ways more below that of our major trading rival ‘provided’, escaped extensive restructuring. pervasive and controlling rather than less. Australia (4.2%) (Dalziel 2001). Further, New The resistance to reforming the housing This is partly achieved through the ways Zealand had markedly increased the sector, at this stage, appears to have been that new public sector management differences between low and high income a reflection of strong institutional resistance practices operate with the state assessing earners leading to a much more unequal from the multi-purpose Housing its performance by its capacity to income distribution and unemployment rose Corporation and the sensitivity of the commodify and displace aspects of what significantly in the early part of the reform Labour Government to the political were previously publicly provide goods and period to be 10.9% in 1991. Thus by the implications of further radical reform after services with either market ones or those mid-90s, considerable debate had emerged 1987 (Campbell 1999, Thorns 2000). As individually arranged by “responsible as to the net benefits of pursuing this housing was not included in the first wave of citizens” (Brodie 1997, Yeatman, 1994). essentially neoliberal agenda especially reforms, the lack of change can also be Under this model citizens became within the Labour Party which was now in linked to the splits that occurred in the consumers and accountability is measured opposition. Labour Government in the late 1980s that in terms of efficiency and this is interpreted weakened the position of the radical as achieved through the market. economic reformers within the Government. Housing Policies: The 1980s-1999 The outcome of the reforms was not as Pressures and advocacy for change were positive as the advocates had suggested Housing during the time of the fourth present during the time of the Labour Hazeldean 1998, Kelsey 1995). The reforms Labour Government was not extensively Government. In both the briefing papers to did not in fact deliver the greater reformed and there was a continuation of a the incoming government in 1984 and after productivity and overall improved economic mix of policies which included both supply the 1987 election, strong arguments were conditions and increased wellbeing that side subsidies in the form of low interest made, particularly from Treasury, for a was given as the reason for the extensive loans to Local Authorities for housing radical change to housing policy along the Figure 1. Housing Assistance: Selected OECD Countries Housing Assistance 90 France 80 70 Denmark 60 United Kingdom 50 Sweden 40 Netherlands Percentages 30 Germany 20 10 0 Supply Demand Supply Demand 1984 1984 1998 1998 Years HOUSING FINANCE INTERNATIONAL – June 2006 21 HOUSINGNEW ZEALAND MORTGAGE HOUSING & HOUSING STRATEGY TRANSACTION FOR 21ST CENTURY IN CHINA lines of the reforms that had swept through was based on income and assets tests and areas of high demand. However, the the other areas of Government policy could be utilized for assistance in meeting outcomes found were not consistent with (Treasury 1984, 1987). The advocacy, in line the cost of state or private sector rental or expectation. The supplement went largely with global trends at this time, was for a towards home ownership. In order to bring to those already on other benefits such as shift towards a greater reliance upon greater efficiency and competition between the unemployment, sickness, and domestic demand side intervention. Figure 1 shows the rental sectors the rents for state houses purposes benefits, or on National the shifting pattern of supply and demand were set to rise in three steps to market Superannuation. Further, the majority went side policy interventions in housing across a rents. Those who were unable to pay these to existing Housing New Zealand tenants as number of OECD countries and shows, that rents, as they were in excess of 25% of their their rents moved upwards towards market in all cases, there was a progressive shift income for rental or 30% of their income for rents (Colmar Brunton 1996). Little of the towards a greater emphasis on demand house purchase, would qualify for the money went into home ownership, so the side measures over this period. Accommodation Supplement. The idea that the AS would be available across a government argued that the cost of the range of tenures did not eventuate.