Paula Bennett talks about paying incentives

The Government has a long-term plan of introducing “milestone payments” for non-government providers which improved the social outcomes of their tenants.

CHA director Scott Figenshow said he was sceptical about the proposed policy.

He said the costs of improving tenants’ social outcomes should be recognised “up front” in contracts with providers, not as an incentive payment.

“On one hand while you would want to see providers with an incentive to do things that … are legitimately good for tenants and families, you don’t want to create some perverse outcomes.

“One of the worries is that providers have been telling Government what they think their true cost is. Government is still saying in some cases that’s too expensive. It doesn’t work when Government holds all the cards.”

He said simply keeping a vulnerable or difficult tenant in stable accommodation was often a strong outcome in itself, but it would not attract any incentives under the scheme proposed by Ms Bennett.

Read more of the New Zealand Herald Article here.