Labour pledges billions to build more social housing, fix hospitals

Labour is promising almost $3 billion to build 6000 new social houses, plus hundreds of millions more to upgrade schools and repair hospitals.

If elected, the party says it will focus on essential building and repair work at sites like hospitals and schools as a pathway back to economic growth and a revived construction sector, which has suffered thousands of job losses in recent years.

Data released this week does show an uptick in employment in construction, although the roughly 192,500 people working in the sector in July is still well below the almost 210,200 in November 2023.

The party’s jobs and work policy, released today, said Health New Zealand would be directed to complete the repair work already on its books, then move on to new repair jobs.

Nearly every state or state-integrated school would receive new funding to improve its buildings and grounds, including heating, plumbing, drainage, playgrounds and sports facilities. Work would start in 12 to 24 months.

The party has also promised at least 6000 new social homes, built by Kāinga Ora and community housing providers, over four years.

The plan would be funded from future operating and capital allowances. The policy document, for the four-year period, includes $2.9b in capital for new social houses and $760 million for additional costs like support income-related rent subsidies, and $450m for the education work ($400m of this is capital).

The health package includes $200m in capital for small-scale remediation projects.

Labour leader Chris Hipkins said as well as addressing repair work at schools and hospitals, and social housing needs, the scheme would help local businesses and communities.

Labour leader Chris Hipkins during a pre-caucus meeting stand up at Parliament earlier this month. Photo / Mark Mitchell 

“Right now, homes need building, schools need improving and hospitals need fixing. We can do all three while creating good jobs for Kiwis.

“When the Government funds a building project, the benefits go well beyond the worksite. Builders hire tradies, tradies buy materials, suppliers get more orders, apprentices get hours and local businesses benefit from workers spending in their communities.”

Labour jobs and incomes spokesperson Ginny Andersen said New Zealand had a backlog of work that needed doing.

“Labour will get that work underway while creating opportunities for Kiwis to get back into work and businesses to win new contracts.

“This is about putting government investment to work – improving public infrastructure, supporting local businesses and giving the construction sector greater certainty.”

Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.