An action group against the Government's proposal to sell off state houses in Tauranga are planning a public protest on Saturday.

Tauranga Social Housing Action Network spokesperson Vanessa Kururangi says there are some serious questions arising over whether the large scale sale of government owned houses in Tauranga is justified.

But Bay of Plenty MP Todd Muller says the group have missed the point when it comes to the sale.

He says it's not about who owns the houses, it's important those who need houses have access to them.

The action group are arranging a public protest to take place in Red Square in Tauranga on Saturday at 1pm.

Vanessa says they have decided to take action to promote public discussion over what will be potentially a major privatisation of government owned assets in the Tauranga area with up to 1200 Housing New Zealand properties being tendered for.

Speaking at the protest will be Labour MP Phil Twyford, Greens MP Jan Logie, Merivale School principal Jan Tinetti, some local social housing tenants and Vanessa.

Vanessa says tenders for the houses have closed and the government is due to make a decision shortly.

'It's felt that this is the last chance for locals to become properly informed about the proposal and to send a message to the government as to whether they agreed with it.”

The proposal is to sell or lease the majority of the 1257 houses in Tauranga with a book value of $321 million.

Vanessa says the purchaser will not have to pay book value with the government willing to leave in a ‘capital investment'.

The group claim the government's reason for selling the sale is to reconfigure the housing stock so it has the right kind of houses in the right places.

Todd says the group are missing the core focus of the government's social housing approach.

'What matters is that those who need houses can access them – this shouldn't be a debate about who owns the house.

'We are intending to sell the Tauranga state houses to a social housing provider, who will then, in turn develop more social houses and reconfigure and refresh the current Tauranga stock.”

The proposal was a good thing for the region and should be welcomed, says Todd.

'The income related rent subsidy that is currently paid by Ministry of Social Development to Housing New Zealand will then be paid to the new housing provider, which will help fund these new housing developments.

'I am very focused on ensuring this model works, new houses are built, old ones refreshed and current Housing New Zealand tenants who continue to qualify for social housing are supported through the process.”

Tauranga MP Simon Bridges says social housing in Tauranga is something the government is continuing to look at to see how it can better help those in need.

He encourages people to take the opportunity to learn more about the process and to have their views heard and considered.

'The Social Housing Reform Programme is designed to get more people in need into quality social housing.

'It builds on a number of measures taken over recent years to provide more New Zealanders in need with quality and affordable housing.”

Simon says the programme includes the transfer of Housing New Zealand houses to community housing providers to support the development of the community housing sector.

'Under the transfer there would be an obligation to continue existing tenancies. The current tenants' entitlement to social housing will be protected in any transfer, and the houses must be used for social housing unless the Government agrees otherwise.”