Like a number of other capitalist countries, New Zealand has recently
undergone considerable economic restructuring. As part of this process
, and representing a major policy redirection, the state has introduce
d a process of corporatisation and privatisation into the social servi
ce sector. In this paper we examine the processes involved in the shif
t from social rented housing to the emergence of a state-owned, commer
cially-oriented company, Housing New Zealand Ltd. We propose that the
policy changes are ill-conceived, risking fiscal blowout for the state
, and are likely to increase the marginalisation and poverty of tenant
s.