Little Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Oral Questions — Questions to Ministers[Sitting date: 17 February 2016. Volume:711;Page:9059. Text is incorporated into the Bound Volume.]1.ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement in relation to the comparative rise in house prices and student loans that “I don’t know but I suspect it’s a terrible amount”?Rt Hon JOHN KEY (Prime Minister): Yes in the context it was made.Andrew Little: Is he aware that both student loans and house prices have risen faster than the wages of young people?Rt Hon JOHN KEY: They certainly did under a Labour Government when house prices doubled but under National the median house price has risen 33 percent over—Kris Faafoi: 7 long years.Rt Hon JOHN KEY: —in a bit over 7 years and the average wage has risen 30.5 percent. So they are pretty much the same.Andrew Little: I seek leave to table official statistics showing that student loans have risen by 26 percent house prices—Mr SPEAKER: Order! I just want to check: is the member simply seeking to table figures that are published on a regular basis by Statistics New Zealand?Andrew Little: There are a number of sources: the Student Loan Scheme Annual Report the Real Estate Institute of New Zealand and Statistics New Zealand.Mr SPEAKER: I think it is a very marginal call but I will put the leave and the House can determine it. Leave is sought to table those particular figures. Is there any objection? There is objection.Andrew Little: In light of the Prime Minister’s previous answer how are young people meant to save for a deposit when student debt is rising faster than their wages?Rt Hon JOHN KEY: I am glad the member asked that question because under National’s KiwiSaver HomeStart programme they can get nearly $50000 actually. That has been tremendously popular. The other thing that is worth noting is that if one looks in the 7 and a bit years that National has been in Government median house prices have risen 33 percent as compared with under a Labour Government—the last one—where those prices nearly doubled.Andrew Little: Is it acceptable to him that since National introduced the student loan scheme the homeownership rate for adults under 40 has gone from over 50 percent to now just one in four?Rt Hon JOHN KEY: Those statistics have been there for quite some time. What we do know about student loans is that they allow people to access tertiary qualifications that allow them to earn a great deal more. From what I can see from Labour’s trumped-up policy it announced on a Sunday afternoon—which is getting no traction so they keep coming to the House with it; as opposed to the Trans-Pacific Partnership which was apparently the big issue—you are not looking at getting rid of student loans. And by the way if you are laughing go and have a look at the column inches and see how many you have got: zero. [Interruption]Mr SPEAKER: Order! A little less interjection from both sides of the House.Andrew Little: Given that he is now such a fan of Labour’s interest-free student loan policy can he name a former finance spokesperson who in this House once described it as expensive and irresponsible? I will give him a clue: the initials are JK.Rt Hon JOHN KEY: That may prove to have been correct actually. It is an expensive policy and that is the point is it not that actually in New Zealand we are the only country in the world that has zero percent loans for people studying for tertiary qualifications and about 70 to 80 percent of what is currently subsidised is paid for by the taxpayers. I personally think that setting is in about the right place.Andrew Little: Does he see any link whatsoever between the $15 billion of study debt young people now owe and the fact that three-quarters of them now cannot afford to buy their own home? Is there any link at all?Rt Hon JOHN KEY: I would have to see where those dodgy statistics come from. [Interruption]Mr SPEAKER: Order! A little less interjection please.Andrew Little: Does he agree that falling homeownership is even a problem and why will he not follow Labour’s lead and have an affordable housing programme and make it easier for young people to save for a deposit by removing student debt?Rt Hon JOHN KEY: There has been a worldwide trend of reduction in homeownership rates and that has been happening in New Zealand over the course of the last 30 or 40 years. But that is why under a National-led Government we have the KiwiSaver HomeStart programme and why it is so popular.Andrew Little: Why is his Government’s policy to saddle young people with debt knowing that it takes years to pay it off and it affects their ability to start a family buy their own home and to live the Kiwi Dream?Rt Hon JOHN KEY: Under Labour’s policy from what I can see students will still have debt. In fact actually some students if they live away from home and even if they are going to a course that has no fees charged for it will still have debt that is incurred for an asset they will not even have because it will be some part-time course they have not completed. In the end actually the system is working pretty well.Hon Member: What are you doing about it?Rt Hon JOHN KEY: I will tell you what we are doing about it. Wages are going up faster than inflation. The unemployment rate is falling. The economy is rising up the OECD. The country is getting better connected with the rest of the world—[Interruption]Mr SPEAKER: Order! The answer is now too long—I admit I do acknowledge responding to an interjection.