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The Ministry for Social Development is taking the criticism of its social housing policies on the chin.
Auditor-General John Ryan's inquiry says the ministry didn't do market comparisons to make sure they were getting a good price for private rentals, they used as emergency housing.
It also found they had no way of determining whether houses were safe, warm and dry.
Social Development Minister Carmel Sepuloni told Mike Yardley the ministry made incorrect decisions because it was under pressure.
“Because of the housing crisis, because of the fact that people were coming to them and there weren’t the accommodation options that they needed.”