Labour pledges $4 billion for state houses, school repairs and hospitals

Labour is promising to create more jobs by building homes, improving classrooms and repairing hospitals at a total cost of more than $4 billion.

The party says it will deliver at least 6000 additional social housing places over four years, school improvements at more than 2000 schools and hospital improvements, too.

Its allocated nearly $3b for building new state houses, $450 million for school repairs, and $200m toward health.

It also allocated $760m to cover the additional Income-Related Rent Subsidy and operating costs for Kāinga Ora and Community Housing Providers.

Labour leader Chris Hipkins and Labour jobs spokesperson Ginny Andersen made the policy announcement in Hamilton on Thursday.

They pointed to an 11-year high in unemployment and struggling construction businesses, saying the party would get building projects underway and "more Kiwis back on the tools".

Hipkins said: "Labour will build the infrastructure New Zealand needs, create jobs and ensure the benefits return to local businesses and communities."

"Right now, homes need building, schools need improving and hospitals need fixing. We can do all three while creating good jobs for Kiwis."

He said government funding for a building project saw benefits beyond the worksite, with builders hiring tradies, tradies buying materials, suppliers getting more orders, apprentices getting hours, and local businesses benefiting from workers spending in their communities.

Andersen said unemployment at an 11-year high under National meant Labour wanted to get Kiwis back to work.

"That means building homes, fixing schools and repairing hospitals, not sitting on our hands," she said.

"This is about putting government investment to work - improving public infrastructure, supporting local businesses and giving the construction sector greater certainty."