More Housing New Zealand tenants are falling behind in rent payments as the flow on effects of National's botched restructure of the state landlord are fully realised, says Labour's Housing spokesperson Phil Twyford.

To the year March 2013, 9,023 existing tenants have fallen behind in rent payments to Housing New Zealand.

'That follows on from the bungled implementation of National's 0800 call centre which saw tenants waiting on hold for as long as 60 minutes at a time.

'While the total amount of money owed to the taxpayer has decreased marginally since September 2012, there is still a total of $3.9 million in rent arrears for current tenants and $1.4 million owed by former tenants.

'There is nothing ‘smart or fair' about creating stumbling blocks for tenants struggling to pay their rent.

'Nor is there anything smart about Housing New Zealand closing 24 community offices across the country and axing 121 full time staff.

'Rent arrears still owed by former tenants are also a concern, with the amount outstanding increasing by 69% since last September.

'Housing New Zealand manages the largest taxpayer-owned asset base. But under National our housing stock is being run into the ground.

'Tenants have an obligation to meet their rent payments, but Housing New Zealand needs to be resourced to address issues before they arise. That clearly isn't happening.

'Housing Minister Nick Smith's inability to ensure his department keeps on top of rent arrears is just another example of mismanagement that is costing the taxpayer dearly.

'Nick Smith needs to go back to the drawing board and consider a solution that really is, ‘smarter, fairer, and faster'.”