A report by Housing NZ into its response to methamphetamine contamination shows the organisation accepts its approach was wrong and had far reaching consequences for hundreds of people.

'Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless," says Housing and Urban Development Minister Phil Twyford.

'Housing NZ is committed to redressing the hardship these tenants faced. This will be done on a case by case basis and the organisation will look to reimburse costs tenants incurred, and make discretionary grants to cover expenses such as moving costs and furniture replacement.

'They will also receive a formal apology from Housing NZ.

'This is what government accountability looks like. Housing NZ are fronting up, acknowledging they were wrong and putting it right."

Phil says the approach to methamphetamine from 2013 by the government of the day was a moral and fiscal failure.

He says Housing NZ had been instructed by then ministers to operate like a private sector landlord. This led to the wellbeing of tenants being ignored.

'Even as evidence grew that the meth standard was too low, and ministers acknowledged it wasn't ‘fit for purpose', the former government continued to demonise its tenants. At any time they could have called for independent advice. Our Government is choosing to do the right thing.

'Under the helm of chief executive Andrew McKenzie, Housing NZ is a very different organisation. It has a new focus on sustaining tenancies, being a compassionate landlord and treating drug addiction as a health issue. This whole sorry saga would not occur under the Housing NZ of today.

'The meth debacle was a systemic failure of government that hurt a lot of people. Our Government is committed to putting this right,."