Smith Nick: Taxation (KiwiSaver HomeStart and Remedial Matters) Bill — First ReadingText is incorporated into the Bound VolumeSmith Nick: Taxation (KiwiSaver HomeStart and Remedial Matters) Bill — First Reading[Sitting date: 04 December 2014. Volume:702;Page:1181. Text is incorporated into the Bound Volume.]Hon Dr NICK SMITH (Minister for the Environment):I have never been so delighted to get to my feet and support a bill that is going to help tens of thousands of young Kiwi families to pull together a deposit for their homes. I am absolutely delighted that the Labour members have stated that they are going to oppose this help for people wanting to own their own homes.I firstly want to deal with the record because the first point that the Labour spokesperson on housing said was: “Where’s the progress in the Government building more houses?”. Let me give the member the numbers. When we came into Government New Zealand was building just 1000 houses a month—a thousand houses a month; the lowest level for 10 years—in November 2008. Do you know what we know from last month’s figures? We are now building 2000 houses a month—exactly double the number from when we came into Government. How can any member opposite say that that is anything other than a positive supply response from our Government?Then we come to the issue of house price inflation. Let me give the members opposite the numbers. During their 9 years in Government house price increases averaged 16 percent per year. House prices grew by 29 percent in a single year and the Labour Party said: “Oh that’s a crisis.” I would like it to explain this: why is it not a crisis when under a Labour Government house prices go up by 28 percent in 1 year but when this year the average increase over the last 12 months was 8 percent it is a crisis? I do not understand; I think it is just straight politics.The third point is this. There are three independent measures of housing affordability—three independent measures. There is the Massey University one there is the Demographia index and there is also the index put out by Roost. Every one of them shows that housing affordability today is 30 percent better than it was when Labour was in Government—30 percent better. So what is this about a housing affordability crisis from Mr Twyford? I will tell you why. One of the most important factors that affects housing affordability is interest rates and because of the dopey economic policies of the previous Government New Zealanders were paying 11 percent interest when we came to Government—Tim Macindoe: 11?Hon Dr NICK SMITH: —11 percent—and today they are paying 6 percent and New Zealand interest rates will be lower for longer because of the responsible economic policies of this Government.I also want to highlight a couple of features where Mr Twyford was wrong. He said that the Australian policy has failed and that we are doing the same. No we are not. I will tell you very importantly why. This policy is targeted at doubling the support for new homes. What the Reserve Bank said what Treasury said and what the Ministry of Business Innovation and Employment said was that the Government should put its support into building new homes. The second thing they said was that we need to get the market to work better and to build more homes that are affordable. That is why the HomeStart grants are specifically targeted at getting the building industry to produce more product that is affordable.Phil Twyford: Why did Bill English oppose it at Cabinet?Hon Dr NICK SMITH: Bill English never opposed it. He has been very supportive of this. I could go through Mr Twyford’s speech and go through eight untruths that he said each of which I noted down as he went through his speech—Hon Member: Only eight?Hon Dr NICK SMITH: —eight points where he just simply said things that are documented and known to be untrue.The further point I would make to the member is that this policy is going to allow 90000 Kiwi families on modest or lower incomes—that is under $120000 if you are couple or under $80000 if you are a single person—to be able to access their KiwiSaver funds and receive a Homestart grant to get into their homes. What is it that Labour Party members hate about helping New Zealanders on modest incomes to pull together a deposit for a home? Why is it that they are opposed to it?I have another question for those members: when Labour brought in the KiwiSaver policy and when it brought in the grants that it did during its period in Government why is it that it was a good policy when Labour did it but a bad policy when National does it? Why did Mr Twyford give a speech about grants for first-home buyers being a bad thing when they did it themselves when those members were in Government? It is just that we are being more generous. That to me is a totally double standard and shows a lack of integrity in terms of their policy position.It is just the same old story from Mr Twyford. He is concerned about and keen to cry crocodile tears at every opportunity over the issue of homeownership yet every time the Government comes into this Parliament to do constructive things to address it he is opposed. So when we come and bring in the housing accords and special housing areas legislation he is opposed. When we come in to reduce the duties and tariffs on building products he is opposed. When we come—Phil Twyford: We voted for that.Hon Dr NICK SMITH: No you voted against the Budget. You voted against the Budget and that was the measure that actually enabled that provision to come into effect. Then the third time when we come to this Parliament to help Kiwi families to pull together a deposit to get into a home Labour members are opposed again. I just simply say that Mr Twyford is the “member for problems around housing affordability” but we are the party for solutions and the House should support the bill.