Little Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Oral Questions — Questions to Ministers[Sitting date: 18 March 2015. Volume:704;Page:2342. Text is incorporated into the Bound Volume.]2.ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement that reducing tariffs on construction materials will save “about $3500 for a new home”; if so when will new home buyers see these savings?Rt Hon JOHN KEY (Prime Minister): I stand by my full statement last year that removing tariffs and duties is expected to save around $3500 on the construction of a standard New Zealand home. Officials estimate the removal of anti-dumping duties is expected to provide the majority of the savings—around about $2600. The remaining $900 of savings is expected from the removal of tariffs. In respect of the second part of the question I am advised that the benefits could take some time to completely pass through to new homeowners as building businesses develop new supply arrangements offshore.Andrew Little: Has he read the Ministry of Business Innovation and Employment report Housing Affordability: Outlook and Opportunities which states: “any cost reductions from the removal of tariffs and duties … is likely to be captured by developers rather than passed on to consumers.”; if so why does the centrepiece of his 2014 Budget give thousands to property developers and nothing to families?Rt Hon JOHN KEY: Firstly it was not the centrepiece of the Government’s Budget. No I have not read that report but we live in a competitive world in housing and any removal of duties and tariffs does actually help reduce the cost and therefore is likely to be passed on to consumers. The second thing I would say is that I checked with Ministry of Business Innovation and Employment officials before I came to the House this afternoon and they advised me that they continue to stand by the view that the savings are in the order of magnitude of the $3500 that they indicated to the Government at the time the announcement was made.Phil Twyford: It’s not what they said in writing.Rt Hon JOHN KEY: Yes it was my boy. [Interruption]Mr SPEAKER: Order! It is not acceptable for this chatter to go on between both the front benches.Andrew Little: In view of the fact that he has not read the report—[Interruption]Mr SPEAKER: Order! I will ask the member to start again.Andrew Little: Thank you Mr Speaker. In view of the fact that he has not read the report has he perhaps been advised of another passage in the report which states that the price impact of the Government’s special housing projects is “negligible” and why does he insist on using piffling half-measures against a full-blown housing crisis?Rt Hon JOHN KEY: There is not a housing crisis. There is certainly a demand for houses and that in part reflects the fact that the Government is doing such a good job that New Zealanders are no longer leaving for Australia in droves like they did when Helen Clark was the Prime Minister.Andrew Little: Given that under his watch Auckland house prices went up by $91000 last year alone rising more than—Hon Dr Nick Smith: They doubled under Labour.Andrew Little: —35 times faster than the median family income Dr Smith is he at all surprised that homeownership is at its lowest level in generations?Rt Hon JOHN KEY: The Minister for Building and Housing is quite right in his interjection. House prices doubled under Labour interest rates were driven to 10.9 percent the Department of the Prime Minister and Cabinet spent 5 years providing advice to Helen Clark on what to do about the housing issues in Auckland and as per normal Labour did absolutely nothing about it. This Government has set about solving those issues. Interest rates are lower a hundred special housing areas have been established and house construction is taking place at levels that are now back where they were in 2008. We are getting on top of the problem.Andrew Little: Is he aware of the Ministry of Business Innovation and Employment report’s conclusion that a large public sector house building programme is the “Most likely means to overcome the majority of Auckland’s dwelling shortfall inside 10 years.”; if so when is he going to get real on housing and sign up to Labour’s KiwiBuild?Rt Hon JOHN KEY: I would be very surprised if that was the conclusion drawn by the Ministry of Business Innovation and Employment. But if the member really thinks that the Government getting out there building houses is the solution to the housing problem then why does he not suggest that the Government should be out there building schools hospitals roads and everything else? Because it does not. The private sector does it and it does it very successfully.Andrew Little: Now that his own officials are recommending he adopt KiwiBuild will he drop his ideological blinkers and get on with actually building affordable homes or is he putting politics before families yet again?Rt Hon JOHN KEY: No we will not be adopting Labour’s failed policies. I predict over the course of the next 6 to 12 months—Mr Parker knows what is coming; he is quiet as a little church mouse these days—most of the policies that Labour did announce will be gone by lunchtime morning tea time and anything else.Andrew Little: In light of the answer to that question I seek leave to table the report of the Ministry of Business Innovation—Mr SPEAKER: Order! No that report is available to all members to source.