economic restructuring, housing policy and maori housing in northland, new zealand

Geoforum, Vol. 26, No. 4, pp. 325-336, 1995 Cowrieht 0 1996 Elsevier Science Ltd

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Econ and

omit Restructuring, Housing Maori Housing in Northland,

Zealand

Policy New

LAURENCE MURPHY,* and DOROTHY URLICH CLOHER,?

Auckland, New Zealand

Abstract: Since 1984 the New Zealand economy has experienced a significant phase of economic restructuring which has had a differential impact on various sectors, regions and social groups within the economy. This paper examines the extent to which economic change has affected the marginalized status of Maori households in the predominantly rural region of Northland. The social implications of economic restructuring are assessed by focusing on the housing circumstances of this indigenous people. Using a newly developed Maori housing database, we argue that relatively progressive housing policies, developed in the 198Os, have failed to address the housing problems of Maori and that the recent reliance on ‘market’ mechanisms to meet housing needs is likely to exacerbate problems of housing access and cost.

Introduction

The next decade will make or break our people. We must use that time to reduce the imbalance between Maori and Non-Maori . to achieve this will require bold, positive and innovative policies. (Minister of Maori Affairs, The Maori Economic Development Summit Conference, 1984, B5)

In 1984 the Labour Government initiated a process of

deregulation and welfare restructuring which radi-

cally altered the character of the New Zealand econ-

omy. The highly protected domestic economy, which

was strongly supportive of the agricultural sector, was

exposed to intense international competition as a

means of enhancing the nation’s economic competi-

tiveness (Britton et al., 1992). The reforms included

‘the deregulation of financial markets; the abolition

*Lecturer, Department of Geography, University of Auck- land, Private Bag 92019, Auckland, New Zealand. tDirector, James Henare Maori Research Centre, Univer- sity of Auckland, Private Bag 92019, Auckland, New Zea- land.

of wage and price controls; the corporatisation of

government departments; an extensive programme

of asset sales; and the dismantling of export subsidies

and import quotas’ (Perry, 1992, pp. 53-54). As a

consequence of the reforms, New Zealand became

deeply implicated in a process of internationalization

(see Britton et al., 1992; Haworth, 1992).

The reforms resulted in a significant increase in

unemployment, with the agricultural sectors and

traditional manufacturing industries being most ad-

versely affected. Between 1986 and 1991 unemploy-

ment increased from 4.2 to 10.1% with a concomitant

increase in the number of long-term unemployed

(Grimmond, 1993). Rising unemployment, whilst

affecting the whole economy, impacted particularly

upon the Maori community resulting in a Maori

unemployment rate of 24% (Department of Stat-

istics, 1993).

The profound changes that have impacted upon New

Zealand’s economy and society since 1984 have con-

325

326

tributed to the increased marginalization of Maori households. Ironically, the adverse consequences of restructuring have coincided with a period of enhanced awareness of the specific needs of Maori in New Zealand society. Indeed, 1984 marked the be- ginning of a government-supported ‘decade of Maori development’, the aim of which was to ‘set Maori free to grow to their full potential’ (Douglas, 1986, p. 5). This paper traces the broad contours of disadvantage faced by Maori by focusing on the socio-economic circumstances of Maori households in the mainly rural region of Northland. In particular we are con- cerned with examining the changing nature of the housing circumstances of rural Maori households. We argue that the changing parameters of housing policy highlights the relative ineffectiveness of government policies in addressing housing needs especially within the context of a shift to the market.

New Zealand Housing Policy and Housing for

Maori

Housing policy in New Zealand has been strongly directed toward the encouragement of home ownership. From the nineteenth century, emphasis was placed on the provision of monies for the construction and purchase of private housing (Thorns, 1988). Whilst pursuing policies that encouraged home ownership based on a British model (single family dwelling on freehold property purchased with a mortgage), the state helped to create a system which was in many ways inimical to the housing aspirations of Maori communities. The long-standing marginalized position of the Maori in the labour market (see Thorns, 1992) meant that Maori households had difficulties accessing mortgage finance from private financial institutions. Consequently, Maori home ownership rates have continually lagged behind non- Maori levels (Bathgate, 1988; Douglas, 1986). In 1991, 51% of Maori households were home owners compared to a national home ownership rate of 76% (Department of Statistics, 1994).

Home ownership rates among Maori have been highest in rural areas. In this context Maori-owned land offers the potential for high levels of home ownership and community-based housing. However, here too there have been problems as the Maori land- tenure system, based on collective ownership, does

Geoforum/Volume 26 Number 4/1995

not sit well within a legal system predicated on private property rights (see Davey and Kearns, 1994). From the early phase of European colonization, until recently, Maori concepts of land occupation have been subsumed under a process of assimilation which sought the ‘individualisation of property rights and the discouraging of the Maori system of individual and hapu’ occupation and use rights’ (Ferguson, 1994, p. 29). The net effect of this process has been a strong reluctance on the part of private mortgage institutions and state agencies to extend loans on land held under Maori title. This reticence on the part of funding agents has negatively affected the housing options available to Maori.

By the mid-1980s the housing circumstances of Maori households contrasted strongly with those of Euro- pean descent. While accounting for only 12% of the population in the late 198Os, Maori households accounted for 26% of state tenancies (Bathgate, 1988), and 47% of all Maori households headed by women were in the state sector (Ferguson, 1994). In 1988 it was estimated that over half of all households deemed to be in serious housing need were Maori and that ‘a specific Maori rural housing crisis’ existed ‘due to decades of neglect by housing authorities coupled with a return of Maori families to turangawaewae’2 (National Housing Commission, 1988, p. 7).

The recognition of a Maori housing crisis had reper- cussions for the way in which housing policy was structured in New Zealand. From the 1950s Maori housing problems were viewed as primarily income related; consequently it was believed that appropri- ately targeted policies for low-income groups would solve all housing problems. Indeed, Ferguson (1994) contends that the increasing representation of Maori households in the state sector confirmed the views of policy makers that Maori housing needs were being met. However, in the 1980s housing policy shifted towards a policy of targeting resources with attention directed toward assisting those groups likely to suffer discrimination in the housing market (McLeay, 1992). Two important schemes directly affecting Maori home ownership were ‘Homestart’, a deposit assistance programme directed toward low- and modest-income earners, and the Papakainga Housing Scheme (PHS), which aimed to remove legal barriers to the development of Maori home ownership on collectively owned land (Davey nd Kearns, i994).


The PHS, although limited in addressing the range of

housing problems faced by Maori, was of particular

importance in rural areas. However, despite the tar-

geted nature of the programme, the Housing Corpor-

ation admitted that ‘the scheme offers no special

advantages to Maori people. It simply removes a

long-standing disadvantage which has prevented

rural Maori families from improving their housing

situation’ (Housing Corporation, 1988, p. 206). The

housing reforms of the 199Os, which emphasize pri-

vate provision and income support rather than state

provision (see Murphy and Kearns, 1994), are likely

to bring about the end of such targeted support

(Davey and Kearns, 1994) and have already resulted

in the cessation of the Homestart programme.

The Dataset

Despite the recognized importance of Maori housing

issues, several studies have highlighted the paucity of

reliable data on the housing circumstances of Maori

(Douglas, 1986; Maori Women’s Housing Research

Project, 1991). In this paper we make use of a recently

created Maori Housing Database developed for the

Ministry of Housing. The database consists of 92

customized cross-tabulations from the last three

Censuses and offers considerable advantages over the

existing published Census volumes. For the purposes

of the dataset the Maori ethnic group consists of those

people identified in the Census as either Maori only

or Maori (with or without another ethnicity). In

contrast to published Census data, which defines

households on the basis of the ethnicity of the

recorded occupier, the Ministry defined a Maori

household as one in which either the occupier or

partner was recorded as having Maori ethnicity. This

definition was chosen so as to take account of the

large number of households where Maori have Pak-

eha (European) partners (see Parkin, 1994). In con-

structing the dataset these definitions were applied

across all three Censuses.

Northland

Northland is an important agricultural region within

the New Zealand economy, with dairying, beef pro-

duction, horticulture and exotic forestry being the

main agricultural activities. Despite its proximity to

327

Auckland, the largest metropolitan area in New Zea-

land, the region is predominantly rural and isolated

(see Figure 1). The region has been selected for

analysis because of the large component of Maori in

its total population and because it is notable for being

one of the most disadvantaged regions in New Zea- land, particularly with respect to housing (Maori Women’s Housing Research Project, 1991).

Maori account for 28% of Northland’s population, which is the second highest regional proportion and more than twice the national figure (Statistics New Zealand, 1994). In a number of wards Maori are in the majority. Between 1981 and 1986 the Northland region recorded an increase in the Maori population of more than twice the national rate (Davey and Kearns, 1994). This growth in population was partly attributable to a process of return migration, as economic opportunities declined in Auckland in the wake of significant job losses in the manufacturing sector. Reflecting the significance of the region for Maori, Northland experienced the highest rate of Maori in- migration for any region, resulting in a net gain of

1700 people between 1986 and 1991 (Statistics New Zealand, 1994). Of particular importance to this

NORTHLAND REGION

District Boundaries

Figure 1. The Northland Region.

328 Geoforum/Volume 26 Number 4/1995

study is the fact that the majority of Maori in North-

land are rural (53%), whereas at a national level only

18% of Maori live in rural areas.

figure (see Table 1). These data highlight the extent

to which Northland Maori occupy a disadvantaged

position within Maoridom.

The region is also distinctive in terms of its socio-

economic character. In 1991 the ‘median income in

the Northland Region was $12,102, the lowest in New

Zealand’ (Department of Statistics, 1992, p. 11).

With respect to income distribution by ethnicity,

Northland Maori were concentrated in the lower

income categories compared to Europeans (Table 1).

Fifty per cent of Maori in Northland had incomes of

$10,000 or less, compared to 38% of Europeans.

Significantly, the low-income status of Northland

Maori is further evidenced by comparison with

national income data for Maori. In all three sub-areas

of Northland a larger proportion of Maori was in the

lowest income category compared with the national

Low income levels reflect the high degree of welfare

dependency within this region. Whilst the wider

Northland community has been adversely affected by

unemployment, it is the Maori workforce that has

been increasingly marginalized. Reflecting its distinc-

tive position within the economy, Northland had the

highest regional Maori unemployment rate at 31% in

1991. At a sub-regional level unemployment rates

among Maori were in excess of 35% (see Table 2),

with the Far North recording an unemployment level

of 39%! Reflecting the radical nature of the restruc-

turing process in the region, the Kaipara district

experienced a threefold increase in Maori unemploy-

ment between 1986 and 1991. The extent to which

Table 1. Income by ethnicity 1991 (percentages)

Far North district

Whangari district

Kaipara district Northland

New Zealand

European only Nil-$10,000 $lO,OOOl-$15,000 $15,001-$20,000 $20,001-$25,000 $25,001-$30,000 30,001 and over Unspecified

Maori only Nil-$10,000 $10,0001-$15,000 $15,001-$20,000 $20,001-$25,000 $25,001-$30,000 $30,001 and over Unspecified

39.0 36.4 40.0 17.0 17.0 17.3 12.0 11.5 12.1

8.2 9.2 9.2 6.5 7.8 7.0

11.4 15.0 11.0

51.2 47.5 53.8 16.5 18.5 15.1 8.5 10.1 9.6 5.2 6.7 5.8 3.0 4.4 3.9 3.8 5.7 5.0

37.7 17.0 11.7 8.9 7.3

13.3 4.1

50.1 42.4 17.1 16.6 9.2 10.9 5.8 7.9 3.5 5.8 4.6 7.9 9.8 8.6

33.9 15.0 10.8 9.5 8.4

18.9 3.54

Source: Department of Statistics, Supermap 2.

Table 2. Maori and non-Maori unemployment rates 1986 and 1991 (percentages)

1986 1991

Maori non-Maori Maori non-Maori

Far North 19.4 6.7 39.0 Whangarei 17.7 5.4 37.5 Kaipara 11.4 4.6 36.7 New Zealand 15.1 5.9 30.6

Source: Ministry of Housing, unpublished Maori Housing Database.

13.2 14.0 11.5 12.2


unemployment has affected Maori in Northland sup-

ports Thorn’s (1992) view that there exists an ‘ethni-

cally segregated underclass’ (p. 99) in New Zealand.

The Northland Housing System

Having outlined the relative economic position of

Maori in Northland, we turn now to consider aspects

of the region’s housing system. Our analysis

addresses four aspects of Maori housing: (a) home

ownership, (b) the rental sector, (c) housing costs and

(d) overcrowding.

Home ownership

Despite cultural differences in conceptions of home

(see Davey and Kearns, 1994), a number of studies

suggest that Maori households aspire to home owner-

ship (see Douglas, 1986; Ferguson, 1994). Such

aspirations reflect the extent to which home owner-

ship is deemed to convey a number of economic and

social advantages which compare favourably with

other tenures (see Douglas, 1986). While we concur

with the findings of an increasing body of inter-

national literature identifying the problems of home

ownership (Forrest et al., 1990; Forrest and Murie,

329

1994; Murphy, 1994), we argue that an analysis of

disparities between home ownership rates among

ethnic groups highlights the extent to which Maori

have been disadvantaged in the housing market.

While home ownership among Maori increased at a

national level, Maori home ownership declined

slightly in Northland from 59.6% in 1981 to 58.8% in

1991 (Table 3). The figures highlight the extent to

which growth in home ownership levels among

Northland Maori only managed to keep pace with the

growth in the number of Maori households in the

region. The experience of Maori contrasts with the

slight expansion in home ownership levels among

non-Maori within the region. Significantly, at the sub-

regional level the Far North district, which has the

highest proportion of Maori within Northland, wit-

nessed a sustained decline in Maori home ownership

rates throughout the 1980s (see Table 3).

In all three sub-areas the period 1981-1986 saw Maori

home ownership levels decline. Underlying this trend

was the issue of finance availability. For Northland as

a whole, the number of Maori households with mort-

gages increased by only six (to 2673) between 1981

and 1986, whereas the non-Maori figure rose by 10%.

The minimal expansion of this sector for Maori high-

lights the extent to which indigenous people were not

Table 3. Home ownership rates for Maori and non-Maori 1981-1991 (percentages)

New Zealand Northland Far North Whangarei Kaipara

Maori non-Maori Maori non-Maori Maori non-Maori Maori non-Maori Maori non-Maori

1981 Owned with mortgage Owned without mortgage

Total


Total


Total

37.1 43.1 35.6 39.9 33.8 33.4 39.3 43.3 32.5 37.8

12.7 30.3 24.0 35.4 30.5 38.7 15.8 34.3 19.0 35.0 49.8 73.4 59.6 75.0 64.3 72.1 55.1 78.6 51.5 72.8

37.0 42.0 31.5 37.3 29.5 32.9 34.7 39.7 30.2 36.9

14.3 33.5 25.5 37.7 32.5 40.3 16.4 36.5 20.5 36.5 51.3 75.5 57.0 75.0 62.0 73.2 51.1 76.2 50.7 73.4

39.8 38.8 37.3 35.3 34.7 31.2 41.3 37.3 37.7 36.1

14.6 36.2 21.5 41.5 26.0 42.3 15.4 41.8 18.5 38.6

54.4 75.0 58.8 76.8 60.7 73.5 56.7 79.1 56.2 74.7

Source: Ministry of Housing, unpublished Maori Housing Database

330

accessing mortgage finance in the region. The point is reinforced when one considers that nationally the number of Maori households with mortgages increased by 9% over this period to 41,900. Low incomes, rural land holdings and problems in the regional economy provided a context in which North- land Maori were deemed unattractive clients for mortgage providers. In the latter part of the 1980s ‘policies targeted at Maori housing disadvantage, such as assistance with mortgage finance through schemes such as Homestart’ (Davey, 1993, p. 15), provided a background for the expansion in the number of Maori in Northland accessing mortgage finance. As a consequence of these policies the total number of Maori households with a mortgage rose by 49% in Northland between 1986 and 1991. Signifi- cantly, the ‘Homestart’ scheme, which assisted this expansion of mortgages among Maori in the region, has been terminated as part of the housing reforms of the 1990s.

While these data indicate a continuing disparity between Maori and non-Maori home ownership levels in the 1980s they offer little insight into the quality of Maori accommodation. In the 1980s it was recognized that:

While the level of home ownership among Maori famil-

GeoforumNolume 26 Number 4/1995

ies is higher in the rural areas than in the main centres, much of the rural housing is substandard and in need of replacement. Recent urban to rural migration is causing major housing problems especially in Northland and the East Coast. (Housing Corporation, 1988, p. 189)

In addition, the expansion of new low-income housing has not been the panacea to problems of rural housing quality. A nationwide survey of Maori housing notes that:

The quality of many so-called ‘affordable’ low-income houses was very poor. Many of the houses are built with substandard materials and poor tradeswork, resulting in substandard new houses. (Maori Women’s Housing Research Project, 1991, p. 43)

The rental sector

Throughout the 1980s the two largest landlords oper- ating within the rental sector were private landlords and the Housing Corporation (HCNZ) or state housing. At a national level, approximately 35% of Maori households obtained housing from these landlords over the study period compared to approximately 18% of non-Maori households (see Table 4). Reflect- ing the rural nature of the region, the relative importance of these two categories of landlord is lower in Northland. However, once again Maori are more

Table 4. Renting by ethnicity 1981-1991 (percentages)

New Zealand Northland Far North Whangarei Kaipara

Maori non-Maori Maori non-Maori Maori non-Maori Maori non-Maori Maori non-Maori

1981 Private landlord Housing Corporation

Total


Total


Total

20.7 13.6 15.5 12.4 12.4 12.9 18.6 12.7 20.9 10.4

14.3 4.7 7.6 1.9 3.9 0.8 14.1 2.6 4.1 1.1 35.0 18.3 23.1 14.3 16.3 13.7 32.7 15.3 25.0 11.5

20.5 13.2 16.3 13.3 13.1 13.0 20.0 13.9 19.8 11.9

14.6 4.1 9.2 1.4 4.3 0.7 17.2 2.0 6.5 0.6 35.1 17.3 25.5 14.7 17.4 13.7 37.2 15.9 26.3 12.5

18.9 13.3 14.9 11.8 13.6 13.0 16.0 11.5 17.9 10.8

15.2 4.2 10.5 1.6 6.8 1.0 17.0 2.3 8.8 0.9 34.1 17.5 25.4 13.4 20.4 14.0 33.0 13.8 26.7 11.7


GeoforumNolume 26 Number 4/1995 331

highly represented in rental accommodation than non-Maori. Over the study period, the proportion of Maori in private rental accommodation declined slightly, whereas the role of state housing in meeting the needs of Maori households in the region increased significantly.

1994), the unique element of the process is the extent to which marginalization is occurring on racial

grounds within this predominantly rural and small- town context. This contrasts strongly with the predominantly urban-based processes of ethnic segre- gation occurring elsewhere (see Smith, 1989; Robinson, 1989).

The changes in the importance of the Housing Cor- poration as a provider of accommodation for Maori reflect a near doubling of Maori tenancies over the period 1981-91, from 570 to 1128 tenancies. The proportion of Maori tenancies within the state sector rose from 53.5% (1981) to 68% (1991). This period coincides with a policy of increased targeting of resources to those in serious housing need (see McLeay, 1992; Murphy and Kearns, 1994). In this context the increased dominance of Maori within this sector highlights the extent to which Maori households had increasingly been faced with housing problems in the region. Moreover, the allocation of tenancies on the basis of serious housing need illus- trates the extent to which the state sector had assumed a marginalized status within the housing system. Whilst this marginalization of state housing conforms to international trends (Forrest and Murie,

1988; Harloe, 1988, 1994; Murphy and Kearns,

At a sub-regional level for all three Northland dis- tricts, and over each census, the number of Maori households as a proportion of all households in each rental category is well in excess of the national figure for Maori (see Table 5). Whilst this is partly a product of the relative size of the Maori population in the region, it is clear that Maori have increasingly come to dominate the state rental sector. In 1991 Maori accounted for 84% of Housing Corporation tenancies in the Far North district and 61 and 64%, respect- ively, of state tenancies in Whangarei and Kaipara.

The importance of the rental sector for Maori must be placed within the context of supply issues. Private landlord tenancies in Northland increased by 24% between 1981 and 1986 with a similar level of expansion occurring in all sub-areas (see Table 6). After 1986 the number of private tenancies remained static

Table 5. Maori households as a proportion of all private landlord and HCNZ tenants

Landlord Far North Whangarei Kaipara New Zealand

1981 Private landlord 34 21 28 15 HCNZ 71 50 41 26 1986 Private landlord 33 21 23 15 HCNZ 77 61 64 29 1991 Private landlord 38 23 25 1.5 HCNZ 84 61 64 31


Table 6. Number of private landlord and HCNZ tenancies 1981-1991

Private Private HCNZ HCNC Private Private Private gains gains HCNZ HCNZ HCNZ gains gains

1981 1986 1991 1981-1986 19861991 1981 1986 1991 1981-1986 1986-1991

Far North 1473 1797 2079 324 282 219 258 477 39 219 Whangarei 2334 2967 2679 633 -288 765 876 1047 111 171 Kaipara 597 717 696 120 21 81 84 135 3 51 Northland 4404 5481 5454 1077 15 1065 1218 1659 153 441

Source: Department of Statistics, Supermap 2.

332 Geoforum/Volume 26 Number 4/1995

for the region as a whole, but distinctive sub-regional

trends emerged. Whangarei, the district with the

largest number of tenancies, experienced a 10% de-

cline, whereas the Far North recorded a 16% in-

crease. With respect to state housing, this period was

characterized by a significant expansion in tenancies.

In the early 1980s the state sector expanded by 14% in

the region, albeit from a relatively low absolute

figure. The expansion of the state sector in Northland

accelerated after 1986, with state tenancies increasing

by 441 (or 36%) and with the Far North district

accounting for almost half (219) of this increase. This

expansion in state housing reflected an increasing

recognition that a rural Maori housing problem

existed.

their home area in other communities (Maori

Women’s Housing Research Project, 1991).

Housing costs

Notwithstanding the increased supply of tenancies, it

is clear that this sector remains a minority tenure and

that in the more rural parts of the region there exists a

dearth of rental accommodation. Several reports

have highlighted the problems associated with the

lack of rental accommodation in rural areas in North-

land (Hokianga County Council, 1986; Te Ruanga o

te Rarawa, 1990; James Henare Research Centre,

1995). Yet, the issue is not one of simply expanding

the stock of rentals. The physical location of housing

in relation to community needs is of vital importance

in the rural context. There is evidence to suggest that

Maori are prepared to tolerate living in substandard

conditions rather than be allocated housing outside of

Another dimension of the housing situation in North-

land relates to the issue of affordability. The Ministry

of Housing’s Database provides a measure of the cost

of rental accommodation based on a simple rent-to-

income ratio. In 1981, among Maori households pro-

viding information on their rents, between 55 and

67% of households were paying rents of less than

25% of their incomes (see Table 7). For all three sub-

areas Maori households were less represented in the

lowest rent-ratio category compared to non-Maori,

reflecting the lower incomes of Maori households.

Highlighting the issue of affordability in the region

was the decline in the proportion of households, both

Maori and non-Maori, paying less than 25% of their

income on rent. While this was a national trend

throughout the 198Os, some dramatic changes took

place within the Northland region. In the Far North

district the proportion of Maori paying less then 25%

of their income on rent declined from 66% in 1981 to

36% in 1991. Between 1986 and 1991, in the Far

North district the proportion of Maori paying in

excess of 50% of their income on rent increased

threefold from 2.4 to 8.6%, while that of non-Maori

doubled (see Table 7). This level of change was

Table 7. Rent ratio for Northland sub-regions and New Zealand 19X1-Yl (percentages)

Less than 25% 25-X)% 50-t% Not specified

Maori non-Maori Maori non-Maori Maori non-Maori Maori non-Maori

1081 Far North Whangarei Kaipara N.Z.



66.1 6Y.5 6.3 7.7 3.2 3.2 24.0 10.1 55.4 68.1 10.3 10.5 4.5 4.2 29.8 17.3 67.7 75.1 8.1 6.6 5.1 2.6 19.2 14.8 60.6 67.8 6.6 8.5 3.7 3.9 2Y.l 19.7

55.6 59.2 10.5 14.5 2.4 4.6 31.5 21.Y 58.2 66.4 11.7 12.3 3.3 4.1 26.5 17.3 66.6 71.5 10.7 10.4 2.7 2.3 19.8 15.8 57.4 63.6 12.4 15.2 3.8 4.9 26.3 16.3

36.5 4Y.2 26.3 20.3 8.6 9.2 28.3 21.3 40.3 55.3 28.6 22.0 9.2 9.5 21.9 13.1 46.0 60.5 23.0 19.0 6.2 4.0 24.8 15.7 42.0 40.5 25.2 24.8 9.5 9.4 23.3 16.3


Geoforum/Volume 26 Number 411995 333

reflected in the total figures for Northland. The five

year period between 1986 and 1991 saw a rapid

deterioration in housing affordability for Northland

Maori; the proportion paying 50% or more of their

income on rent tripled from 2.9 to 8.6% whereas the

proportion of non-Maori in this category increased

from 2.7 to 7.6%.

national level Maori have consistently had a higher

overcrowding index than non-Maori (see Table 8),

reflecting differences in family size, fertility levels

and age distributions between the different groups

(Davey, 1993) but also the housing circumstances of

Maori. Over the study period the index has declined

for both Maori and non-Maori. Within Northland the

Far North district recorded the highest levels of

overcrowding, with the index for Maori households in

1981 and 1986 being in excess of one. These aggregate

measures of overcrowding disguise higher levels of

crowding in less substantial dwellings such as cabins,

huts, bachs4 and caravans. In 1991 Maori living in

baths, cribs or huts had a crowding index of 1.73.

Acknowledging the limitations of this measure, in-

cluding the high level of non-response and the fact the

data provide no information on the adequacy of after-

rent incomes, the figures allude to an increasing

affordability problem in the rental sector. More sig-

nificantly, these data are for the period preceding the

corporatization of state housing. The commercial

mandate of the new state-owned company, Housing

New Zealand Ltd, in conjunction with the move away

from income-assessed rents to market rents, is likely

to exacerbate affordability issues in the near future.

The state’s response to the issue of affordability has

been the introduction of an Accommodation Supple-

ment. This Supplement is available to all low-income

households to assist them with their housing costs and

requires that households pay at least 25% of their

income on rent or mortgage payments. On this basis

even low-income household will have to sustain hous-

ing costs in excess of 25”/0 to avail themselves of state

assistance. Moreover, it has been argued that the

introduction of an accommodation supplement has

the potential to promote rent increases in the private

sector and further enhance affordability problems

(Ferguson, 1994; Murphy and Kearns 1994; Roberts,

1992).

Overcrowding

The Ministry of Housing Database includes an index

of crowding based on a ratio of the number of adult

equivalents to the number of bedrooms.-’ At a

Despite its limitations, the index suggests that Maori

are likely to experience more stressful housing cir-

cumstances than non-Maori. This is especially the

case when one considers the extent to which Maori

have been disadvantaged in other aspects of the

economy and the housing market.

Housing in the 1990s

The above discussion provides a vantage point from

which it is possible to assess the impacts of current

housing policy. From 1991 the state has embarked on

a fundamental restructuring of its activities in the

housing market. The major elements of the reforms

include: a significantly reduced role for the state in

the mortgage market; the creation of a crown entity

(Housing New Zealand Ltd.) charged’with the man-

agement of state rentals in a commercial manner; and

the introduction of an accommodation supplement.

These reforms represent a significant departure from

a long-held policy perspective that emphasized the

importance of an ‘active state presence in the housing

market’ (Ferguson, 1994, p. 236). The state has

moved away from the direct provision of housing

Year

Table 8. Overcrowding index for all dwelling types 1981-1991

Far North Whangarei Kaipara New Zealand

Maori non-Maori Maori non-Maori Maori non-Maori Maori non-Maori

1981 1.04 0.72 0.96 0.69 0.92 0.67 0.97 0.72 1986 1.02 0.67 0.96 0.68 0.89 0.65 0.95 0.69 1991 0.95 0.67 0.90 0.63 0.87 0.63 0.89 0.67

Source: Ministry of Housing, unpublished Maol-i Housing Database.

334

support and relies now on the Accommodation Sup-

plement as the ‘primary instrument through which [it]

offers housing assistance to low-income New Zea-

landers’ (Morrison, 1995, pp. 39-40).

Murphy and Kearns (1994) provide an analysis of the

philosophy and rationale underpinning the reforms

and raise questions concerning the long-term impli-

cations of these new policies. They highlight the

extent to which the reforms have been driven by a

desire to control government expenditure whilst pro-

viding, in the words of one Minister of Finance,

‘welfare we can afford’ (Richardson, 1991, p. 16).

More importantly, they point to the increasing domi-

nance of economic policy in establishing the govern-

ment’s housing agenda. The shift in policy is likely to

alter conditions within the two main tenures.

With respect to home ownership the state has termi-

nated the Homestart programme, privatized half of

the Housing Corporation’s prime rate mortgages and

reduced its role as a mortgage provider. The cessation

of Homestart has significant implications for low-

income home ownership in that it removes a major

form of assistance for low-income groups seeking a

mortgage. From 1986 to 1990, $600 million was lent

under this programme, and although the scheme

suffered from a high risk of repayment default (Lux-

ton, 1991) over 30,000 loans were approved. The

Accommodation Supplement, which is designed to

assist households with current mortgage repayments,

does not directly assist households to secure a deposit

or enter the tenure. Given their marginalized position

in the workforce the new regime of assistance is

unlikely to assist the expansion of Maori home

ownership. Moreover, it is clear that the PHS

depended to some degree on the availability of

Homestart funds; thus the reforms call into question

the Papakainga housing programme that was

designed to specifically assist Maori in rural areas

(Davey and Kearns, 1994). The reduction in the

state’s role as a mortgage lender also means Maori are

dependent upon private financial institutions for

mortgage finance. In the past these institutions have

shown a reticence to advance mortgages to Maori.

In terms of the state rental sector, the advent of a

more commercially orientated management struc-

ture, in conjunction with the move to market rents, is

likely to increase housing costs in the near future.


Whether the Accommodation Supplement will coun-

teract such trends will depend on conditions in local

markets and the regionally defined maxima for the

supplement. For the majority of existing state tenants

the state acknowledges that housing costs will in-

crease (see Luxton, 1991). Within Northland the

ethnic composition of this sector ensures that existing

Maori tenants will be adversely affected by the new

policies. Furthermore, with respect to the provision

of new rentals, Housing New Zealand is not required

to expand its stock at a national level and it is likely

that the application of commercial criteria may re-

strict any expansion of this sector in rural areas.

In terms of housing costs and provision, the reforms

have the potential of exacerbating housing problems

in rural areas. The explicit dependence on the private

sector to meet housing needs may be unwarranted

within the context of a rural economy characterized

by unemployment and low incomes.

Conclusions

Utilizing a recently developed database, we have

sought to highlight the problematic nature of recent

economic reforms in New Zealand and the extent to

which indigenous Maori have been marginalized both

in the labour force and within the housing system. We

have focused on a regional case study as a means of

identifying some of the place-specific consequences

of restructuring and to highlight the rural dimensions

of this process.

The experience of Northland highlights the extent to

which Maori have been affected by large-scale pro-

cesses of economic restructuring. Low incomes,

widespread unemployment and high levels of welfare

dependency have combined with unfavourable legal

structures and private sector institutional practices-

including discrimination (see MacDonald, 1986; Col-

mar Brunton Research, 1994)-to consign Maori to a

disadvantaged position in the housing market. De-

spite attempts to expand home ownership rates

among Maori, ownership levels remained static for

the region throughout the 1980s. Whilst the number

of Maori mortgagors increased, this reflected a

reliance on the state and its provision of mortgage

finance and deposit assistance. In the rental sector,

GeoforumNolume 26 Number 411995

once again, Maori increasingly became dependent

upon the state.

The housing policies of the 1980s reflected an

enhanced awareness of the needs of Maori and were a

response to the increased official recognition of a

specific housing crisis that confronted Maori (Bath-

gate, 1988; Douglas, 1986; National Housing Com-

mission. 1988). Despite these reforms being framed

within the context of a wider structure of fiscal re-

straint and a desire to target the scarce resources of

the state, they provided a context for assisting those

in serious housing need. However, whilst the needs of

Maori were recognized, it has been argued that policy

responses aimed at incorporating Maori values into

the system remained peripheral to the wider set of

housing objectives (Ferguson, 1994). The housing

policies of the 199Os, which emphasize the creation of

a level playing field (Davey and Kearns, 1994), sub- sumes Maori housing issues within the broader context of low-income housing assistance. Given the experience of the 198Os, the recent corporatization of state housing and the increasing withdrawal of the state from the arena of housing provision are likely to adversely affect the housing circumstances of Maori, especially in rural areas such as Northland.

A decade after the Maori Economic Summit, it is salutary to look back and see how little has changed

for Maori. The experience of Northland Maori leads

us to believe that the state’s increased reliance on

market provision in the sphere of housing is likely to

perpetuate Maori disadvantage. Thus we concur with

Davey and Kearns’ (1994) call for ‘special [housing]

provisions and programmes attuned to Maori cultural

aspirations’ (p. 81). Such programmes need to be set

within a wider suite of initiatives designed to promote

sustainable rural communities.

Acknowledgements-The authors wish to acknowledge the assistance of the staff of the Ministry of Housing in accessing the Maori Housing Database. We would also like to thank Jan Kelly (University of Auckland) for preparing the location map and Robin Kearns for comments on an earlier draft. This paper has benefited from the comments of two anonymous referees.

Notes

1. Hapu refers to a sub-tribe in which people are usually linked by a common ancestor.

335

Turangawaewae is a Maori term for ‘home’. More literally it can be understood as a ‘place to stand’. In this context the phrase encompasses a space which is often greater than a house and for many ‘the location of home is often in the mind, heart and spirit’ (Maori Women’s Research Project, 1991). This measure is based on the number of persons usually resident in a dwelling. Children under 10 years of age are counted as 0.5 of an adult, with all those above this age (excluding couples) counted as one and couples also counted as one (Parkin, 1994). Baths and cribs refer to summer houses.

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