State housing isn't providing for those most in need and there is a clear case for change in the way it is delivered, Housing Minister Phil Heatley says.
Recommendations from the Housing Shareholders Advisory group (HSAG), set up in April, would be carefully considered, he said today. But whatever changes were introduced, the elderly, the infirm and the vulnerable would not be adversely affected, he said.
"Despite record levels of investment, waiting lists remain static with around 10,000 people urgently needing a home," Mr Heatley said.
"I am very concerned about those families on the waiting list who are in significant need while HNZC (Housing New Zealand) is currently maintaining thousands of old houses that are the wrong size, often in the wrong areas, and many of which are occupied by tenants who could rent privately."
Mr Heatley said the HSAG had recommended that HNZC should focus on the "high needs" sector, that the Government should work with third parties which could deliver community housing, and that it should find effective ways to move state tenants who were able to provide for themselves.
"If the Government were to adopt new policies, such as the introduction of reviewable rentals, it is likely these would be introduced for new tenants entering the system first," he said.
Labour's housing spokeswoman, Moana Mackey, said the HSAG recommendations would do nothing to address the housing shortage.
"Labour totally supports any move to partner with and build up the community housing sector but given the chronic shortage, especially in Auckland, we need to be building more houses, not just shifting existing ones around," she said.
"The Government's own figures show an expected housing shortfall of 15,000 homes over the next five years. If we don't start building a lot more houses the situation is only going to get worse."
The Green Party also said the housing stock had to be increased.
"There are too few houses available and those that are available are unaffordable," said co-leader Metiria Turei.
"Creating a cycle by which people are moved out of state housing into barely affordable private rental housing will not impact on the housing crisis -- it simply intensifies the instability and financial duress thousands of our families face."
Ms Turei said the Government could build 6000 new homes for about the same price as the "holiday highway" from Puhoi to Wellsford.
"Instead they're choosing to leave thousands of Kiwi families to struggle to find a decent place to call home."