How bad is Kāinga Ora?

Chris Bishop announced:

“A recent report by the Treasury and Ministry for Housing and Urban Development found that Kāinga Ora’s level of debt had grown from $2.7 billion in 2018 to $12.3 billion in June of this year. Advice released last year suggests that if Kāinga Ora continues on its current trajectory, their debt would reach $28.9 billion by 2033.

“I am deeply concerned about the operating deficit which is already at $520 million in 22/23 and which is forecast to continue increasing. This deficit has a direct impact on OBEGAL and continues to put pressure on the return to OBEGAL surplus.

“Since coming to office Ministers have received further worrying advice about the financial situation of Kāinga Ora. We are not releasing that information at this time as it is commercially sensitive, but it confirms that an independent review is the right course of action.

You have to wonder how bad it is, for an independent review to be needed?