The Government is requiring Housing New Zealand to report monthly, so its spending on infrastructure can be monitored.
It has emerged that Treasury expressed serious concerns about capital spending by the corporation, before the Government announced a multi-million dollar infrastructure package to help tackle the recession.
Housing New Zealand received $124 million from the total amount of $484 million, mainly for upgrades to state houses.
Papers obtained by Radio New Zealand under the Official Information Act show that Treasury recommended ministers seek assurances and greater transparency about the way the corporation spends its money.
Housing Minister Phil Heatley says the monthly reporting requirement was introduced in response.
Mr Heatley says under the direction of the previous government, Housing New Zealand used about $150 million a year set aside for repairs, to instead buy new houses, while state housing stock was falling into disrepair.
The minister says the Government will be making sure money tagged for upgrades is used for that purpose, and he is pleased at how Housing New Zealand has changed the focus of its capital spending since the report.
