Twyford Phil: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Oral Questions — Questions to Ministers[Sitting date: 28 April 2015. Volume:704;Page:2913. Text is incorporated into the Bound Volume.]8.PHIL TWYFORD (Labour—Te Atatū)to the Minister of Finance: Does he stand by his statement that the Government has effectively left nothing “undone” to tackle sky-rocketing house prices in Auckland?Hon BILL ENGLISH (Minister of Finance):Yes in the context that the statement was made which was a reference to the work that the Government has done with the Auckland Council which is the primary decision maker in the Auckland housing market. It was referring to any steps that would have an “immediate impact”. However I am confident that the measures the Government is taking will improve housing affordability over time. There are not too many steps you can take that have immediate impact—for instance working with the council to build on the 100 special housing areas around the country; specific projects on public land including three in Christchurch and forthcoming announcements in Tāmaki; taking off tariffs and duties on building materials; further reforms of the Resource Management Act to encourage councils to deliver long-term improvements in land supply; significant reforms of social housing opening up the market to community providers; and much more efficient use of the Government’s extensive landholdings particularly in Auckland.Phil Twyford: Was he consulted on the title of the Reserve Bank Deputy Governor’s speech “Action needed to reduce housing imbalances”; if so what did he take the action called for to mean—was it the kind of action that has seen Auckland house prices go up on average by more than $300000 on his watch?Hon BILL ENGLISH: No I was not but the speech outlines a range of actions that the Government has taken. The member needs to understand here that the local council makes the decisions because the decisions affect the local residents. That is exactly what happens. The member opposed the special housing areas legislation. Why did Labour oppose the special housing areas legislation if it thought that the Government should get on and do things? That legislation has been of great assistance to the council in encouraging the supply of a lot more land into the Auckland market and we look forward to the member’s support in the future for further measures that the Government intends to take.Phil Twyford: Does he agree with the Prime Minister that house prices are not overvalued; if so how does he reconcile that with the fact that there is currently the biggest gap in affordability between Auckland and the rest of the country since the Massey index started 25 years ago while homeowners in the region have to cop loan-to-value ratios and higher interest rates because of his failed policy?Hon BILL ENGLISH: Auckland is reaping the rewards as we all are of a planning philosophy going back to the mid-1990s which that member supported that was designed to stop Auckland growing. We have legislated over the top of that ridiculous planning philosophy in order to allow Auckland City to grow. That is what is working.Phil Twyford: When the Reserve Bank and commentators are calling house prices a risk to the economy first-home buyers are locked out of the market and offshore speculators are making a killing how is it acceptable to throw up your hands and say that there is nothing else to do?Hon BILL ENGLISH: As I said to the member the comment he is referring to was made in the context of the work that is being done between the Auckland Council and the Government to have immediate impact on the housing market. If the member would like to enlarge his view he should talk to the Auckland Council about how willing it is to allow the Government to take the council’s decision making off it because actually we are not willing to take the council’s decision making off it. We have to work with that council because the decisions it makes affect local people. We are working together; we have made significant progress. Of course it is not fast enough but we can only go as quickly as the Auckland Council will actually go.Phil Twyford: Is the reason he said there is nothing left to do because the reality is that this is now a tired old Government that has run out of ideas?Hon BILL ENGLISH: No that is simply not correct. As the member may well know the Government is working with what is a lengthy pipeline of development. Just by way of illustration it was not uncommon in Auckland to take 10 years to get a new subdivision—it was not uncommon. We are now getting those subdivisions through in some cases in less than a year. That is simply how long it takes. Even if the Government wants to build thousands of houses it still needs the consent of the Auckland Council to build those houses and they have to be built consistent with the Auckland Unitary Plan which that member’s voters want to see in place.