1 00:00:00,120 --> 00:00:02,840 Speaker 1: Now the crackdown on coying your Order continues. After the 2 00:00:02,880 --> 00:00:05,320 Speaker 1: resignation of the five board members and the chief executive 3 00:00:05,320 --> 00:00:08,640 Speaker 1: this week, five new appointments have been announced today along 4 00:00:08,640 --> 00:00:11,880 Speaker 1: with the new letter of expectations, in which financial stability 5 00:00:11,920 --> 00:00:13,600 Speaker 1: is to be the top priority of the board. Remember 6 00:00:13,640 --> 00:00:16,280 Speaker 1: last year Coyinger Order ran a five hundred and twenty 7 00:00:16,320 --> 00:00:19,800 Speaker 1: million dollar operating loss. Chris Bishop is the Housing Minister, High. 8 00:00:19,640 --> 00:00:21,160 Speaker 2: Bish good day. 9 00:00:21,320 --> 00:00:23,520 Speaker 1: Are you expecting these guys to get back into surplus? 10 00:00:23,520 --> 00:00:27,720 Speaker 2: Are you? I'm expecting them to eliminate losses. Kia Or 11 00:00:27,800 --> 00:00:31,520 Speaker 2: has been running multimillion dollar deficits and those were forecast 12 00:00:31,560 --> 00:00:34,559 Speaker 2: when we came into government to get worse, and so 13 00:00:34,640 --> 00:00:38,120 Speaker 2: we are expecting them to eliminate losses. Financial sustainability of 14 00:00:38,159 --> 00:00:40,519 Speaker 2: the organization is extremely important. This is a forty five 15 00:00:40,520 --> 00:00:43,680 Speaker 2: billion dollar Crown company and houses said, well, it's got 16 00:00:43,680 --> 00:00:46,919 Speaker 2: owned about seventy thousand houses around the Country's very important 17 00:00:46,960 --> 00:00:50,000 Speaker 2: that it operates effectively and efficiently, and so that's our 18 00:00:50,040 --> 00:00:51,880 Speaker 2: real focus and that's why we've refreshed the board. 19 00:00:52,080 --> 00:00:53,920 Speaker 1: In order to do that. Do they need to potentially 20 00:00:54,000 --> 00:00:54,600 Speaker 1: raise rents? 21 00:00:57,320 --> 00:01:00,720 Speaker 2: Well, it's a conversated financial picture in the sense that 22 00:01:00,760 --> 00:01:07,000 Speaker 2: they get operating funding for their rents from the Crown 23 00:01:07,480 --> 00:01:10,560 Speaker 2: through a thing called income related rents. So yeah, your 24 00:01:10,600 --> 00:01:13,280 Speaker 2: average coin or a tenant pays twenty five percent of 25 00:01:13,319 --> 00:01:16,240 Speaker 2: their income and rent and then the Crown tops up 26 00:01:16,240 --> 00:01:19,200 Speaker 2: the rest. So it's very extensive for the government. But 27 00:01:19,319 --> 00:01:20,960 Speaker 2: of course we do that because there are a whole 28 00:01:21,000 --> 00:01:23,240 Speaker 2: lot of people out there who can't afford a private 29 00:01:23,280 --> 00:01:26,520 Speaker 2: rental market and they need access to good quality housing. 30 00:01:26,520 --> 00:01:29,240 Speaker 2: That's why we own kind of and so that's why 31 00:01:29,240 --> 00:01:33,600 Speaker 2: it's really important it operates effectively and efficiently because it 32 00:01:33,640 --> 00:01:35,840 Speaker 2: houses a lot of very vulnerable people and we need 33 00:01:35,840 --> 00:01:38,000 Speaker 2: it to be operating in a financially sustainable way. 34 00:01:38,040 --> 00:01:40,360 Speaker 1: Yeah. But I mean, given as you point out that 35 00:01:40,400 --> 00:01:44,319 Speaker 1: they are designed to basically give people a really really 36 00:01:44,360 --> 00:01:47,080 Speaker 1: good deal on rent, how are they going to get 37 00:01:47,080 --> 00:01:49,240 Speaker 1: back into surplus. I mean, it's not like that. They're 38 00:01:49,280 --> 00:01:51,680 Speaker 1: not a profit making organization, So what would they do. 39 00:01:52,680 --> 00:01:54,960 Speaker 2: Well, they can reduce their overheads and they can cut 40 00:01:54,960 --> 00:01:58,040 Speaker 2: the costs, and that's what the independent review suggested they 41 00:01:58,040 --> 00:02:02,000 Speaker 2: should do. And their bill pro is also something where 42 00:02:02,080 --> 00:02:04,040 Speaker 2: I would like to see them make real efficiencies and 43 00:02:04,080 --> 00:02:07,120 Speaker 2: savings as well. I mean, I would be contacted by 44 00:02:08,120 --> 00:02:10,600 Speaker 2: builders who build for kind or or you know, probably 45 00:02:10,639 --> 00:02:14,240 Speaker 2: on a weekly basis, around and around some of the 46 00:02:14,280 --> 00:02:16,520 Speaker 2: extra costs that kind of aora imposers that the private 47 00:02:16,520 --> 00:02:20,519 Speaker 2: sector will just never impose, for example, And so we 48 00:02:20,880 --> 00:02:23,920 Speaker 2: will be asking the board to cut costs and work 49 00:02:23,960 --> 00:02:25,160 Speaker 2: efficiently and effectively. 50 00:02:25,400 --> 00:02:26,880 Speaker 1: So are they are they going to be able to 51 00:02:26,919 --> 00:02:29,000 Speaker 1: build any more houses? They allowed to build anything? 52 00:02:30,080 --> 00:02:32,440 Speaker 2: Yes, They've got a big build program underway right now. 53 00:02:32,440 --> 00:02:36,839 Speaker 2: They'll build around four eight hundred homes over the next 54 00:02:36,960 --> 00:02:40,760 Speaker 2: year or so and a little bit beyond that as well. 55 00:02:41,440 --> 00:02:43,200 Speaker 2: So they have a big bill program, and they also 56 00:02:43,240 --> 00:02:46,160 Speaker 2: have a retrofit program. They've got a very aged stock 57 00:02:46,200 --> 00:02:48,800 Speaker 2: of houses lot built in the nineteen fifties and sixties, 58 00:02:48,840 --> 00:02:50,320 Speaker 2: kind of coming to the end of their life. They've 59 00:02:50,320 --> 00:02:52,799 Speaker 2: got big challenges in terms of their stock, so they've 60 00:02:52,800 --> 00:02:57,960 Speaker 2: got retrofit and maintenance program underway as well. So fundamentally 61 00:02:58,160 --> 00:03:01,399 Speaker 2: they are a very large company and a very large landlord. 62 00:03:01,639 --> 00:03:03,840 Speaker 2: We want them to focus on being a good landlord, 63 00:03:03,960 --> 00:03:06,440 Speaker 2: look after your tenants, and we want them to focus 64 00:03:06,480 --> 00:03:10,119 Speaker 2: on growing their stock and doing so in a financially 65 00:03:10,160 --> 00:03:15,320 Speaker 2: sustainable and efficient way. Where As cheaply as possible housing 66 00:03:15,360 --> 00:03:16,200 Speaker 2: people in need. 67 00:03:16,600 --> 00:03:18,960 Speaker 1: Are they allowed to grow this stock because my reading 68 00:03:19,000 --> 00:03:22,359 Speaker 1: of the leader says no net new growth in ko 69 00:03:22,560 --> 00:03:24,600 Speaker 1: social housing places from gus. 70 00:03:25,800 --> 00:03:28,040 Speaker 2: That's the situation at the moment, while we demand a 71 00:03:28,120 --> 00:03:31,320 Speaker 2: turnaround plan from the board to cut their costs. So 72 00:03:31,360 --> 00:03:34,600 Speaker 2: we have not given them any extra funding beyond the 73 00:03:34,600 --> 00:03:36,800 Speaker 2: thirties of during twenty twenty five, so that what they're 74 00:03:36,800 --> 00:03:39,440 Speaker 2: building at the moment is what's already been funded. We 75 00:03:39,520 --> 00:03:42,720 Speaker 2: are not giving them giving klang Or any new funding 76 00:03:42,760 --> 00:03:46,360 Speaker 2: for extra places beyond cities of Dune twenty twenty five. 77 00:03:46,400 --> 00:03:49,640 Speaker 2: We funded the community housing sector instead, so groups like 78 00:03:49,640 --> 00:03:51,680 Speaker 2: a merge In, the Salvation Army and some of these 79 00:03:51,720 --> 00:03:54,160 Speaker 2: other community groups they will be building social housing. So 80 00:03:54,200 --> 00:03:56,800 Speaker 2: they're still a pipeline there and kang Or has still 81 00:03:56,800 --> 00:03:59,320 Speaker 2: got to build pipeline themselves. But we want to get 82 00:03:59,680 --> 00:04:01,920 Speaker 2: the new board in place, a new chair with Simon Muther, 83 00:04:02,120 --> 00:04:05,640 Speaker 2: a refresh board of extremely experienced people. We've demanded a 84 00:04:05,680 --> 00:04:08,800 Speaker 2: turnaround plan from them, which will come to ministers towards 85 00:04:08,840 --> 00:04:11,920 Speaker 2: the end of the year. Once we've considered that turnaround plan, 86 00:04:12,320 --> 00:04:16,159 Speaker 2: we will then consider future funding for future building. But 87 00:04:16,279 --> 00:04:18,880 Speaker 2: it's very important that kind of or exists in newsy One. 88 00:04:18,920 --> 00:04:21,479 Speaker 2: They provide a very important social and social service and 89 00:04:21,520 --> 00:04:23,159 Speaker 2: a very important safety net for many people. 90 00:04:23,240 --> 00:04:25,919 Speaker 1: Tell me something. Okay, So Andrew McKenzie was obviously Simon 91 00:04:25,960 --> 00:04:27,960 Speaker 1: Moota didn't deny the fact that he basically told Andrew 92 00:04:28,040 --> 00:04:30,719 Speaker 1: McKenzie to quit. Did you guys not have any confidence 93 00:04:30,800 --> 00:04:33,640 Speaker 1: that Andrew McKenzie could actually do these things? Or was 94 00:04:33,680 --> 00:04:35,919 Speaker 1: it that he was just too tainted from all the 95 00:04:35,960 --> 00:04:37,360 Speaker 1: other stuff had already stuffed up? 96 00:04:38,480 --> 00:04:41,520 Speaker 2: Look, that's not a question for me. My relationship is 97 00:04:41,560 --> 00:04:44,200 Speaker 2: with the board and particularly the chair of kindl Or. 98 00:04:44,400 --> 00:04:48,320 Speaker 2: Employment matters around the actual staff at kinl A are 99 00:04:48,320 --> 00:04:49,159 Speaker 2: matters for the board. 100 00:04:50,000 --> 00:04:52,279 Speaker 1: Buts fair enough, I suppose, Chris Bishop, thank you very 101 00:04:52,320 --> 00:04:54,000 Speaker 1: much for the time. Always appreciated, Chris Bishop, of the 102 00:04:54,040 --> 00:04:58,000 Speaker 1: Housing Minister. For more from Heather Duplessy Allen Drive, listen 103 00:04:58,080 --> 00:05:01,279 Speaker 1: live to News talksa'd be from four pm weekdays, or 104 00:05:01,320 --> 00:05:03,360 Speaker 1: follow the podcast on iHeartRadio.