CHAIRMAN’S LETTER FYE 30 JUNE 2024
Mr Uluomatootua Saulaulu Aiono ONZM
We finished well. But we are doing more. Better!
Led by our Habitat Northern Region Ltd (HFHNR) CEO Mr Conrad LaPointe and Board we finished the year with a stronger balance sheet driven by increased revenues & surplus. We grew our pipeline to 57 houses needing funding and consents plus 23 in final construction stages for August 2024 occupation in Whangarei. For these 23, we extend huge thanks to GJ Gardner and the subcontractors. And thank you too for the ongoing expertise and hard work by our HFHNR Development Manager Mr James Davies, Housing Manager Ms Carina Dickson, Operations Manager Ms Leana Hunt, Finance Manager Ms Lorene Neilson and our organisation wide coordinator CEO Executive Assistant Ms Heather Leather.
Our HFHNR revenues were $13.7m ($11.0m FYE 30Jun23); operating surplus $2.6m ($1.3m); net assets rose to $33.2m ($30.6m) including fixed assets $43m ($34m) and cash $5.8m ($6.2m). Total headcount was 67 FTE excluding volunteers. ReStore retail sales grew $0.5m to $3.6M. We added a store with more to open depending on leases, donations, community support and volunteers.
In our 23 dwellings Whangarei new housing community project we failed to honour the Te Parawhau iwi. HFHNR Board Member Sir Christopher Farrelly led us as we sought forgiveness and reconciliation with Te Parawhau through the Houhourongo process. We are honoured by Sir Christopher’s leadership. And we are honoured by the 4 April 2024 Houhourongo led by Matua Pari Walker on Matakohe Island. This led to the Te Parawhau blessing of the dwellings at 5 AM on Friday 16 August 2024 on the new road, Warren Place, created by Whangarei City Council in honour of HFHNR’s Founding CEO Mr Warren Jack.
Congratulations to Mr Warren Jack and Mrs Heather Jack.
Also in April we farewelled Board Member Mr Mohammed (Mo) Khan after six years. Thank you very much Mo. Our ReStore shops sales grew to $3.6m with your encouragement, guidance and commercial expertise. Your governance was a critical enabler of our northwards shift in new housing & investment from, expensive, Auckland to Whangarei and Kerikeri.
The newly elected Coalition Government’s changes to housing policy and priorities in the Ministry of Housing & Urban Development stopped all community housing providers, including HFHNR, in their tracks. This sector is now examining its participation and standing in NZ housing provision especially after the May 2024 release of Sir Bill English’s Independent Review of Kainga Ora Homes & Communities. The Government has announced Resource Management Act (RMA) reforms to stop costly NIMBY objections to thoughtful, socially desirable, land use change. For decades, these objections have been a primary cause of unaffordable housing and homelessness.
Right now, times are tough for many, many, Kiwis. For the seven quarters from 1 October 2022 to 30 June 2024 gross domestic product per capita fell 4.6%. This is a cut of $300 per person per month. Even worse, in the same period, gross national disposable income per capita fell 6.2 %. This is $400 per person. Compared to 2022 a family of two parents and two children is $1600 per worse off today. Per month! And the forecast is even worse for the September 2024 quarter.
For the quarter ending (FQE) 30 June 2023 inflation was 7.2%. This dropped to 3.3% FQE 30 June 2024. But housing affordability did not improve. Why? Because disposable income is committed to monthly payments of high personal and household debt.
As a country New Zealand is suffering the same problem. Damaging debt levels. Damaging productivity levels. So the Coalition Government has cut expenditures, set new budget priorities, established a 2027 fiscal surplus target, and broadcast the simple message: New Zealand must fix its low productivity and live within its means.
Accordingly we have reviewed our: strategic plan; building & construction; capital works in progress; balance sheet forecasts & buffers; relationships with funders and Government ministries; capital raising strategy; and ReStore operations.
Started in 1994 by our Founding Chairman Mr Ken Stevenson, retired, who was inspired to recruit others and take action after hearing a speech by the Manukau Rotary Club’s outgoing Chairman Major Anthony Stone (Salvation Army), we, in HFHNR, today, are thirty years distant and even more inspired to find the ways and build the paths to the Habitat dream for every person to have a safe, decent, place to live.
Thank you to my fellow Board Members; Deputy Chairman Mr Michael McLean; Director Tu’u’u Maeta’anoa Mr Luamanu (Lou) Maea; Director Sir Christopher Farrelly KNZM; Director Dr Pauline Kingi CNZM; Director Mr Cori Barkle; Policy Committee Chair Dr Lorraine Skelton; Finance Audit Risk Chairman Mr Wayne Williams.