Key fears becoming 'slum lord'

Prime Minister John Key says some state houses are in such poor condition the Government is in danger of becoming a slum landlord.

"We have real concerns about the quality of the housing that's being provided," he said at his post-cabinet press conference today.

"Our primary focus will be to improve the quality of those houses, so it's unlikely we will look to aggressively build stock."

Mr Key, who grew up in a state house, said the Government had to balance its objectives and he had "real concerns" about low-quality housing and lack of insulation and heating.

He was also worried about health and social issues that resulted "from what is at times the state being almost a slum landlord".

The Business Council for Sustainable Development commissioned a survey of 3526 people which found poor insulation and inefficient homes caused widespread suffering, with 26 percent of those surveyed saying their homes had made one member of the family sick.

Only 29 percent said their homes were very warm or comfortable, while 59 percent said their homes were warm, but could be better.

The survey confirmed earlier studies showing 16 percent of homes had no insulation at all, 71 percent had uninsulated walls, 64 percent had no underfloor insulation and only 29 percent of ceilings had been fully insulated.

This meant of 1 million of 1.6 million homes were not adequately insulated.

The Green Party got the previous Labour government to agree to the 15-year $1 billion household insulation scheme - The Green Homes Fund - in return for the Greens' support for legislation enacting an emissions trading scheme (ETS).

It was to be funded through profits recycled from state-owned power companies as a result of the ETS.

Green Party health spokesperson Kevin Hague today said the survey showed the fund was desperately needed.

"The benefits are clear. For every dollar spent on insulating cold houses, there is close to a two-dollar benefit in energy and health savings. This means less time off work, less time off school and a better quality of life," he said.

He called on National to rethink his position.

Housing Minister Phil Heatley said the fund was an election promise, not a reality.

"There was no fund," he told NZPA.

"Unfortunately for the Green Party the money from state-owned enterprises with the emissions trading scheme had already been allocated to a bunch of industries to see them through some difficult times.

"So the Green Party can't spend the money twice -- either they were going to borrow it or they were going to tax hard working New Zealanders for it. They ought to get their story straight."

National had developed its own suite of energy efficiency policies. Mr Heatley said insulating state homes was a priority and there were funds to subsidy solar heating.

Mr Heatley said the survey raised issues that have been well known for some time.

The Business Council for Sustainable Development made a range of recommendations, including a mandatory home performance rating system to apply to all new and existing homes when they were rented or sold.

Other measures included:

* linking government accommodation supplements to homes that have an adequate rating performance, and consideration of paying a rent supplement to landlords with good performing homes;

* reducing consenting delays for innovative designs for better performing homes;

* education on what options were available and training for the renovation industry; and

* Government finance packages for home performance improvements that could be paid back through energy savings or reclaimed from an owner's estate.

Mr Heatley said the Government would not support linking accommodation supplements because it may limit choices for rental accommodation.

It was looking at the problem.

"We are looking at streamlining the consenting process across a whole range of areas and that (insulation) could be one of them."