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PM won't rule out under-fire Serco buying state housing

Author
Newstalk ZB Staff ,
Publish Date
Mon, 31 Aug 2015, 7:05AM
Prime Minister John Key (Getty Images)

PM won't rule out under-fire Serco buying state housing

Author
Newstalk ZB Staff ,
Publish Date
Mon, 31 Aug 2015, 7:05AM

Updated 10.10am: There are fears New Zealand's state housing could fall into the wrong hands.

LISTEN TO JOHN KEY'S INTERVIEW WITH MIKE HOSKING ABOVE

The next step in the sell-off begins today, with Treasury taking market soundings for up to 1500 houses in Tauranga and Invercargill.

Green Party co-leader Metiria Turei said it's very worrying that the government hasn't ruled out accepting a bid from under-fire contractor Serco, which is under investigation over fight clubs, contraband and serious injuries in Mt Eden Prison.

"Don't sell state houses to international agencies, but certainly don't sell it to Serco, who have proven themselves totally incompetent when it comes to dealing with vulnerable New Zealanders," Turei said. 

She said the government "is desperate to sell it off, for no good reason, but desperate."

"And I guess government will take whatever fat cheque is waved under their noses."

Prime Minister John Key said being found in breach of its contract for Mt Eden wouldn't rule Serco out of a role in social housing.

But Key says that wouldn't stop it operating Wiri Prison, or being a social housing provider.

"There are a range of different options there from penalties right through to cancellation of the contract," Key said. 

"I don't think that means they can't do other things...Firstly they'd have to prove they could actually do it, had some expertise, all of those requirements would have to be met. Secondly, we'd have to be absolutely confident they could do it."

 

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