1 NEWS Reporter
A major stoush has broken out between the Housing Minister and Treasury with Phil Twyford slamming some of those working at the Government's lead economic and financial adviser as "kids."
That's after Treasury downgraded its forecast over how much extra housing investment Kiwibuild will deliver to the economy.
Builders are under the pump and construction is being delayed on some new houses by at least a year.
"We're really busy as an industry and just forever I get reports of builders wanting more and more people. And they're just not available, so we're in a pretty chronic position currently," Grant Florence of the NZ Certified Builders Association told 1 NEWS.
It has prompted Treasury to downgrade its forecasts for the Government's Kiwibuild programme.
"I just think some of these kids in Treasury are just fresh out of university and they're completely disconnected from reality," Mr Twyford said.
National's housing spokesperson Judith Collins said her experience is "you should always listen to Treasury".
"They're not always going to be exactly the way they see things, but ultimately they're looking at it from a dispassionate point of view and independent point of view," she said.
Before Christmas, Treasury said Kiwibuild would result in $5.4 billion of extra residential investment by 2022.
Now it has slashed that number in half, saying some of that investment won't happen as quickly.
"One of the mistakes I think Treasury have made is that they've assumed that the investment has to be made before the houses are built," Mr Twyford said.
The Government has also promised to build 1600 state houses a year.
Currently there are almost 8000 households in need of state housing and National says it would have built more.
"National went into the last election promising over 6,000 state houses over the next three years. So we were promising on 2000 a year," Ms Collins said.
Mr Twyford said: "The opposition had nine years and they allowed the housing crisis to spin out of control."
The Government is promising there's no change in its plan to build more houses, and there will still be 100,000 affordable homes in a decade.
The Ministry of Social Development is urgently reviewing a decision not to grant an extension of a student allowance to a man who says he's been told by StudyLink he must quit a free night class or face a benefit cut.
The unemployed man who has depression and asked to remain anonymous, was the subject of an RNZ story which was also carried by 1 NEWS NOW on Thursday.
The man and his partner, who are parents to an eight-year-old, are taking business classes at Te Wananga O Aotearoa in Otara, South Auckland.
Work and Income had told his Auckland Action Against Poverty advocate that he was not entitled to the student allowance because, at 55, he was too old and had studied in the past.
StudyLink had said that if he and his partner both want to access full benefits, one of them will have to give up their studies.
The man has chosen to stay on the course but isn't getting any support from the government, meaning his family is surviving off his partner's student allowance and the families tax credit - around $340 a week.
Ministry of Social Development Auckland Regional Commissioner Mark Goldsmith says they understand the man's situation and the difficulty he is facing.
"We are doing all we can to support him and his family as we know he is feeling stressed by the situation. This is a complex case, it is the first example of its type that we have seen and so it will take some time to resolve it," Mr Goldsmith said in a statement to 1 NEWS NOW this afternoon.
He said it has been a policy for some time that someone cannot receive a student allowance and Work and Income support at the same time and this makes it difficult to assist the man.
The man has asked the ministry to review its decision not to grant him an extension of his student allowance, Mr Goldsmith said. He has used his 120-week entitlement on previous study.
"We are treating his request with urgency. We need to deal with (the man's) request before we can resolve his case," Mr Goldsmith said.
He said the ministry cares about the man's wellbeing and has contacted him today "to let him know we are actively looking at options for him".
The man said if the couple were allowed to retain their benefits while studying they would have an extra couple of hundred dollars a week.