Smith Nick: Riccarton Racecourse Development Enabling Bill Riccarton Racecourse Bill — First ReadingsText is incorporated into the Bound VolumeSmith Nick: Riccarton Racecourse Development Enabling Bill Riccarton Racecourse Bill — First Readings[Sitting date: 22 October 2015. Volume:709;Page:7538. Text is incorporated into the Bound Volume.]Hon Dr NICK SMITH (Minister for Building and Housing): I move That the Riccarton Racecourse Development Enabling Bill and the Riccarton Racecourse Bill be now read a first time. I nominate the Local Government and Environment Committee to consider the bills. At the appropriate time I intend to move that the bills be reported to the House by 7 March 2016.The Christchurch housing market has been experiencing significant pressure from the time of the major earthquakes in 2010 and 2011. Rebuild activity is well under way particularly in the residential sector. There is a parallel between this bill in the housing space and the Greater Christchurch Regeneration Bill that has just been introduced by my colleague Gerry Brownlee who has been leading the huge recovery work in that city. Good progress has been made on the residential recovery. If we look at the building consent figures we saw them soar to four times their normal historical levels. New supply though has been disproportionately in the higher price brackets and this bill is aimed at not just increasing supply but also ensuring that we grow supply in the range that is more affordable.Although I am happy with the overall progress of the residential rebuild which has involved hundreds of millions of dollars of investment by Housing New Zealand which has involved the use of temporary housing on reserves and which has involved massive repair work and programmes I am concerned that we need to do more to produce more houses at the affordable end of the market. The majority of the homes that were in that classic Canterbury phrase “munted” were actually homes that were older and in the more affordable range. It is typically the more affordable stock that actually provides an entry point for people looking to purchase their first home. We have worked with the Christchurch City Council on the Christchurch Housing Accord to help bring on stream new housing developments. Just last week in the central city I was with Mayor Lianne Dalziel turning the sod on some of the residential development in the central business district between the four avenues. There remains a further need though to increase the supply of housing at the affordable end and also housing that is in reasonably close proximity to the city.The board of trustees that governs the Riccarton Racecourse contacted me with a proposal to convert part of the racecourse into housing development. Its proposal involves building at least 600 new homes on the site and in discussions with the Government it agreed that a minimum 30 percent or 180 of these homes will be targeted at the more affordable end of the market. It also allows the land to generate additional income for the Riccarton Racecourse board. This income can be used to not only reinvest in the facilities of the racecourse but provide infrastructure assets that are important to the broader part of Christchurch and provide greater support for racing activities. This housing development will provide a significant number of new homes for Christchurch and the Government’s position is quite consistent that supply is actually at the core of addressing affordability issues. This is especially true as I have said for houses that are at the more affordable end of the market. The Government has its very successful HomeStart scheme that has had a very high level of pick-up in Christchurch but we want to make sure that there are homes for those people who are eligible for those grants.The Riccarton Racecourse is a reserve governed by both the Christchurch Racecourse Reserve Act 1878 and the Reserves Act 1977. These Acts pose a barrier to the board’s housing proposal and the best way to address that is through legislative change. Combined with the current pressure on the Christchurch housing market this creates a unique situation and we believe legislation is the best way in which to allow this housing development to proceed. It is worth reflecting on the fact that at the time that the Riccarton Racecourse was established and the legislation was passed by this Parliament in 1878 the racecourse was a long way from the city. It was 20 years before the first car came to New Zealand and nobody would ever have envisaged that the city would grow so much that the racecourse would now be well within the city limits. It is now only a short drive to the city. It is nestled within a vibrant suburb with good access to schools to local shops and to other communities and facilities. It is exactly the kind of location where new housing is needed and I put to the House that to have this land underutilised sitting vacant is actually not the best use of this country’s resources.It is a long-established rule of this Parliament that any amendment to an Act that has been passed as a local bill must be promoted by the relevant local authority. I want to inform the House that the Christchurch City Council has agreed to support the development and to promote the local bill—the Riccarton Racecourse Bill—to make the necessary changes to the local Act. The Riccarton Racecourse is also subject to a right of first refusal under Ngāi Tahu’s settlement legislation and we have gone to some care with these bills to ensure that that right of first refusal is recognised and protected.Finally I do want to acknowledge the Business Committee for agreeing to consider these bills being developed as cognate bills. In fact as an older member of the House for some time the way in which the Business Committee is able to make pragmatic decisions of that sort to enable a single debate and process through the House and select committee just makes common sense. Given neither bill can achieve its aims without the other it is appropriate that they are considered as a single legislative package by this House and by the select committee. This is pragmatic legislation that is designed in such a way that it will support racing in Canterbury. It supports the earthquake recovery and it results in more sensible use of this area of land and I commend both bills to the House.