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INL DIGITAL EDITION March 15, 2020

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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

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