5. Question No. 5—HousingHon JUDITH COLLINS (National—Papakura) to the Minister of HousingQuestion No. 5—Housing5. Hon JUDITH COLLINS (National—Papakura) to the Minister of Housing: Does she agree with Treasury advice that subsidies—whether to financiers developers or homebuyers—are becoming a part of the actual or expected KiwiBuild toolkit" and "this is in practice inevitable until reforms to regulatory settings and more-efficient construction take hold"?Hon Dr MEGAN WOODS (Minister of Housing): Yes in the broader context it was made. However KiwiBuild is not a direct subsidy in the same way that for example a HomeStart grant is. KiwiBuild houses are homes sold at cost. This Government is simply providing the development capital to get affordable homes built. But as the quotes in the member's question highlights Treasury see any assistance in the housing market as a subsidy. On this side of the House we make no apology for active Government involvement in housing. The advice the member refers to also states "Our housing is amongst the least affordable in the OECD." and the "Increases in housing costs have reduced home ownership increased hardship reduced economic growth lowered wellbeing and increased inequality." Of course as I've told the member on numerous occasions I'm currently resetting the KiwiBuild policy and will be taking a Cabinet paper to that effect by the end of August. This is of course in addition to the work on regulatory settings by my colleague the Hon David Parker.Hon Judith Collins: Will reforms to the regulatory settings in the resource management system be made during this term of Parliament?Hon Dr MEGAN WOODS: That is not something I have ministerial responsibility for. As I've told the member before if she wants to ask about Resource Management Act (RMA) reform she should put a question down to the Hon David Parker.Hon Judith Collins: Has she discussed them with him?Hon Dr MEGAN WOODS: We have had David Parker give updates at our joint ministerial team meetings but I have no ministerial responsibility for them. I suggest she put a question down to the Hon David Parker.Hon Judith Collins: Does she agree with Treasury advice that without a housing market structural fix Government programmes like KiwiBuild cannot "make homeownership possible for more than a limited number of middle-income households"?Hon Dr MEGAN WOODS: It is precisely why our Government is getting on with the business of RMA reform and why David Parker has begun that work stream. As I've noted that question is coming from a member who was a member of a Government for nine years that failed to get it across the line—SPEAKER: Order! The member will resume her seat because that's not accurate.Hon Judith Collins: Thank you Mr Speaker. Who does she agree with: Treasury which says that subsidies have become part of the KiwiBuild tool kit; or the Prime Minister who said "It's not about subsidising housing."?Hon Dr MEGAN WOODS: I think I answered that in my answer in the broader context. Treasury do see subsidies in any form of assistance. I do point that member to the advice that Treasury gave to the National Government in 2015 which said the first home subsidy through HomeStart was poor value and all that would happen was it was likely to bring forward purchases that would otherwise happen anyway. It also warned against increasing demand in the supply-constrained environment which would raise prices undoing much of the benefit of the subsidy.Hon Judith Collins: I raise a point of order Mr Speaker. I don't believe that was even an attempt at addressing the question. The question was really clear: which one does she agree with?SPEAKER: No no. Order! I think right at the beginning she did. I probably let her run on too long afterwards."