6. Question No. 6—FinanceINGRID LEARY (Labour—Taieri) to the Associate Minister of FinanceQuestion No. 6—Finance6. INGRID LEARY (Labour—Taieri) to the Associate Minister of Finance: What is the Government doing to ban foreign buyers from the New Zealand residential property market?Hon DAVID PARKER (Associate Minister of Finance): When this Government took office around 20 percent of homes in central Auckland and 10 percent of homes in the Queenstown region were being purchased by overseas buyers. We fixed that within 100 days by introducing legislation to effectively ban foreign buyers of existing residential homes in New Zealand. Now the percentage of foreign buyers of New Zealand homes is just 0.5 percent. This is a successful policy that has delivered on its promise to restrict foreign buyers of New Zealand homes. Ingrid Leary: Why is it important that the New Zealand housing market is set by New Zealanders?Hon DAVID PARKER: This Government believes New Zealanders should not be outbid for homes by wealthy foreign buyers. Whether it's a beautiful lakeside or ocean-front house or a modest suburban home this law ensures that the market for our homes is set in New Zealand not on the international market.Ingrid Leary: How does the ban on foreign buyers of New Zealand homes interact with our trade agreements?Hon DAVID PARKER: The Government banned foreign buyers before the Comprehensive and Progressive Agreement for Trans-Pacific Partnership trade deal came into effect. If we had not done so foreign citizens from within that agreement and other countries we have trade agreements with including China and now the European Union could not be prevented from buying up New Zealand homes. If that position is reversed by any future Government such a law may be irreversible without violating our international trade agreements.Ingrid Leary: Does the Government have any plans to loosen the ban on foreign buyers of New Zealand homes?Hon DAVID PARKER: The Government is not considering that because removing the foreign buyer ban would not be for the benefit of New Zealanders; it would only be for the benefit of foreign capital. Giving open slather to foreign buyers would be selling out young New Zealanders who are finally getting a foot on the property ladder because under settings like we have in this Government the percentage of homes that go to people who live in them rather than rent them out—from overseas or New Zealand—owner-occupiers do better under us. Allowing foreign buyers into our housing market would send young Kiwi first-home buyers to the back of the queue. Our position is clear. The position of other parties is for the media to investigate. Chris Bishop: How does he reconcile this opposition to foreign capital with the Government's announcement of a $2 billion fund funded by BlackRock a foreign capital fund to invest in renewable energy?Hon DAVID PARKER: Unlike the other side of the House we've always seen a difference between foreign direct investment in companies and in actually commercial property compared with allowing rich-listers from overseas to outbid New Zealanders for a modest house in South Auckland. New Zealanders want one house to live in. We don't want rich people from overseas outbidding them.