The Government says it has no intention of selling Housing New Zealand, and is using increased returns from the corporation to provide more subsidies.
Finance Minister Bill English says Housing New Zealand could only use its income to maintain its housing stock. Photo: RNZ / Diego Opatowski
The Labour Party [accused the Government http://www.radionz.co.nz/news/political/259489/housing-nz-readied-for-sale-labour of running down the state housing provider to sell].
Housing New Zealand would return a $108 million dividend to the Crown for 2013-2014 - the third largest dividend ever paid.
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The minister responsible for Housing New Zealand Bill English said the higher dividend would allow the Government to help more people with serious housing needs.
He said the corporation could only use its income to maintain its housing stock and build more houses - and paying rent subsidies was the Government's role.