Discrimination against poor people alleged

A Port Chalmers woman says it is discrimination against poor people to prohibit those on Government-assisted home loans getting a top-up to access the home insulation scheme.

Tenoch King and her husband, Mark Steadman, took out a Housing New Zealand Welcome Home Loan, which help lower-income people buy their first home.

The scheme does not let people top up their loan, even to take advantage of the Government's home insulation scheme.

• Insulation aid for 3800 in the South 

The couple's villa, which Ms King believed was built in 1914, was cold in winter and difficult to heat because it lacked insulation.

The couple moved to New Zealand three years ago. Mr Steadman, an Australian, is a relief secondary schoolteacher, while Ms King, from the United States, is a full-time bachelor of arts student, working part-time.

If it was not for New Zealand's low-wage economy, the couple would not need state assistance, Ms King said.

Taking out a personal loan instead would incur a higher rate of interest than their home loan.

Preventing assisted borrowers topping up their mortgage essentially excluded them from a scheme designed to help them. This discriminated against the poor and created a blanket rule which did not take into account individual circumstances, she said.

Without insulation, people had to pay for extra electricity they could not afford.

When Ms King complained to Housing Minister Phil Heatley, she was advised people on lower incomes needed to be careful about taking on extra debt, which was why top-ups were not allowed.

However, when contacted yesterday, Mr Heatley said Housing New Zealand was considering changing the rules to allow assisted borrowers to access the home insulation scheme.

"This Government recognises it is important for families to live in warm, insulated homes, which is why we have committed $347.3 million over four years to the Warm Up New Zealand: Heat Smart programme."

- eileen.goodwin@odt.co.nz