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MARCH <strong>15</strong>, <strong>2020</strong><br />
Businesslink<br />
Action Plan ensures sustainable<br />
housing for the homeless<br />
Michael Wood<br />
Our government is stepping<br />
up to prevent and reduce<br />
homelessness in New Zealand.<br />
The Aotearoa New Zealand<br />
Homelessness Action Plan, which<br />
was released last week, establishes a<br />
framework and funding to help the<br />
homeless into sustainable housing.<br />
This follows a decade of denial<br />
and neglect under National, which<br />
sold off state houses as the numbers<br />
of homeless grew dramatically.<br />
For a start, we will move more<br />
vulnerable New Zealanders from<br />
emergency motel accommodation to<br />
transitional housing.<br />
New transitional homes<br />
A thousand new transitional<br />
housing places will be delivered by<br />
end of <strong>2020</strong> to reduce demand for<br />
emergency motel accommodation.<br />
This is in addition to about 1300<br />
places already created.<br />
We have campaigned on addressing<br />
housing and homelessness and<br />
we are delivering during the short<br />
time we have held office.<br />
We will introduce a 25% of income<br />
payment, after seven days for those<br />
in emergency motel accommodation<br />
to bring in line with other similar<br />
accommodation support payments.<br />
We have allocated over $70 million<br />
for programmes that will help<br />
people who are at the risk of losing<br />
their rentals and becoming homeless<br />
and also to support people out of<br />
RNZ Picture by Luke McPake<br />
Infographics from Action Plan website<br />
motels and into permanent<br />
accommodation.<br />
Long-term solutions<br />
Alongside these immediate<br />
actions, we are looking at longterm<br />
plans of action to reduce<br />
homelessness.<br />
We have initiated a public<br />
housing building programme<br />
that hasn’t been seen in New<br />
Zealand for 40 years. On<br />
assuming office, our immediate<br />
priority was to get people out<br />
of sleeping in cars and garages<br />
or on the streets into safe and<br />
warm accommodation.<br />
A major investment in<br />
‘Housing First’ which moves the<br />
homeless into housing and then<br />
works to deal with underlying<br />
issues such as mental health<br />
and addiction, is already seeing<br />
promising results in keeping<br />
people off the streets.<br />
Additional funding will also<br />
enable preventing homelessness<br />
among Maori and expand<br />
housing supply that is delivered<br />
by Maori.<br />
More funds will enable<br />
supporting of young people who<br />
are leaving Oranga Tamariki<br />
care into suitable accommodation<br />
with wrap around support<br />
services for them.<br />
Mental Health services<br />
Acute mental health services<br />
as well as addiction inpatients<br />
transiting into community with<br />
housing and other support<br />
services will also be funded.<br />
Ministry of Social<br />
Development will also launch<br />
a new housing broker service<br />
which will connect with local<br />
landlords and support MSD<br />
clients to secure private rental<br />
homes. The Social Development<br />
Minister Hon Carmel Sepuloni<br />
is very sure of making housing<br />
costs as consistent and fair as<br />
possible to all.<br />
Every New Zealander should<br />
have a decent, safe place to<br />
sleep at night. The legacy of<br />
homelessness we inherited was<br />
serious and it will take some<br />
time to completely resolve the<br />
issue. Under this government<br />
however, real progress is being<br />
made.<br />
Michael Wood is Member<br />
of Parliament elected from<br />
Mount Roskill in Auckland.<br />
He is the Chief Government<br />
Whip.<br />
09<br />
Commerce Commission warns HSBC over disclosures<br />
Supplied Content<br />
The Commerce Commission has<br />
issued a warning to The Hongkong<br />
and Shanghai Banking Corporation<br />
Limited (HSBC) over its failure to<br />
comply with the information disclosure<br />
requirements of the Credit Contracts and<br />
Consumer Finance Act 2003 (CCCFA).<br />
HSBC self-reported the matter to the<br />
Commission following a routine audit of its<br />
business in New Zealand. HSBC identified<br />
six occasions between 2014 and 2018 when<br />
it failed to disclose an interest rate increase<br />
to borrowers.<br />
Borrowers affected<br />
The failures affected 225 loans and 180<br />
borrowers.<br />
In the Commission’s view, HSBC likely<br />
breached the requirements of the CCCFA for<br />
lenders to disclose changes following the<br />
exercise of a contractual right or power.<br />
Commission Chair said that HSBC advised<br />
that these failures were due to inadequate<br />
internal manual processes and failure to<br />
identify errors in a timely way.<br />
“The disclosure requirements are there to<br />
protect consumers. They ensure that lenders<br />
provide essential information about a loan<br />
when it is first taken out or, as in this case,<br />
when the lender makes a change to the loan,<br />
as allowed in the contract. Lenders must<br />
fully and accurately inform borrowers about<br />
such changes and within the required time<br />
limit. HSBC failed to do so in relation to these<br />
cases,” she said.<br />
Borrowers contacted<br />
HSBC has written to borrowers providing<br />
full particulars of the change following the<br />
interest rate increase in 2018 and made<br />
changes to its processes including moving<br />
to automated disclosure processes where<br />
possible.<br />
It has also provided compensation to<br />
affected borrowers totalling about $7000.<br />
“In light of the actions already taken by<br />
HSBC and the relatively small number of<br />
affected borrowers, the Commission decided<br />
that a warning was appropriate in this<br />
case. We note HSBC’s pro-active conduct in<br />
self-reporting the matter and its subsequent<br />
co-operation with our investigation,” Ms<br />
Rawlings said.<br />
About CCCFA<br />
The CCCFA protects consumers when they<br />
borrow money or buy goods on credit. It<br />
sets out the rules that must be followed by<br />
lenders when they provide loans.<br />
Disclosure is important information about<br />
a loan that lenders must give borrower at<br />
different times during the loan, including<br />
when it is first set-up, on an ongoing basis,<br />
and if a loan is varied.<br />
It helps borrowers understand what the<br />
loan will cost them and what their and the<br />
lender’s obligations are under the loan.<br />
Where a lender exercises a right under<br />
the contract to increase the loan interest rate<br />
or loan payments, the lender must disclose<br />
full details of the change to the borrower<br />
within 5 working days of the change.<br />
Warning letters<br />
A warning explains the Commerce<br />
Commission’s opinion that the conduct at<br />
issue is likely to have breached the law. Only<br />
the Courts can decide whether a breach of<br />
the law has in fact occurred.<br />
The purpose of a warning letter is to<br />
inform the recipient of the Commission’s<br />
view that there has been a likely breach of<br />
the law, to suggest a change in the recipient’s<br />
behaviour, and to encourage future compliance<br />
with the law.<br />
Source: The Commerce Commission,<br />
Wellington<br />
Priyanca<br />
Radhakrishnan<br />
Labour List MP based in Maungakiekie<br />
Maungakiekie Office<br />
09 622 2660<br />
priyanca@parliament.govt.nz<br />
Level 1 Crighton House,<br />
100 Neilson St, Onehunga<br />
(entrance via Galway St)<br />
| | priyancanzlp<br />
Authorised by Priyanca Radhakrishnan<br />
Labour List MP, 100 Neilson St, Onehunga