People on Niue are angry at the efforts of the Niue Development Bank to encourage expatriates to return to the island.
MP Terry Coe says islanders are upset the Bank is discussing offering loans to Niueans living in Auckland for renovation or the building of new houses on the island.
The Bank chairman, Aukuso Pavihi, says the poor state of housing is a factor in discouraging people from returning to the island to live.
But Mr Coe says the Bank should first ensure that the people already on the island are happy with their accommodation.
"The houses that most of us are living in now are between 40 and fifty years old and they are breaking up and very hard and that to maintain. And what we are looking for, on the island, is probably, new houses."