6. Housing Market—Commentary and AffordabilityPHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and ConstructionHousing Market—Commentary and Affordability6. PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Construction: Does he accept the finding of the periodical The Economist that New Zealand has the most unaffordable housing in the developed world?Hon Dr NICK SMITH (Minister for Building and Construction): No and that is not what The Economist said. Furthermore the report is based on 6-month-old data and Auckland house prices have dropped 8 percent since then.Phil Twyford: Does he accept that according to The Economist New Zealand has had the highest rise in house prices costs the most against the average person's income and now has the biggest difference between house prices and rents?Hon Dr NICK SMITH: I also note that New Zealand has had the strongest economic growth some of the lowest levels of unemployment and some of the strongest population growth. I would also note that the OECD report actually notes that house prices in countries such as Australia in major cities have actually grown faster than they have in New Zealand.Phil Twyford: Does he accept the glowing accolades of the property speculators who made an average profit of $70000 per house flipping Auckland houses last year and who say that he is doing a great job on the housing portfolio?Hon Dr NICK SMITH: Every time I hear the member saying that a Labour Government is going to stop speculators I have to ask the question why and how—[Interruption]—how—because anybody who pretends that they can prevent speculation is dreaming.Phil Twyford: When the former Prime Minister John Key told him to supercharge the housing market when he appointed him to fix the housing crisis in January 2013 why did he take him literally and drive up the median house price to median income ratio from 6.7 times to 10 times and run up a 40000 dwelling deficit?Hon Dr NICK SMITH: When I became the building and construction Minister New Zealand was building 13000 houses per year. New Zealand is now building 30000 houses a year. I challenge the member to find any 4-year period where house construction has grown so quickly.Joanne Hayes: What recommendations has The Economist made about how to improve long-term housing affordability?Hon Dr NICK SMITH: The Economist has noted that the worst house prices exist in cities with the tightest land regulation and has strongly advocated policies that reduce the time and cost of consenting new housing developments. That is exactly what this Government is doing with its resource management amendment bill which is being so strongly opposed by members opposite—showing that they are part of the problem not part of the solution.Phil Twyford: Is he surprised that Hugh Pavletich the co-author of the Demographia report on housing affordability—whose foreword to that report was contributed by the current Prime Minister only a few years ago—describes him the Minister as a blundering incompetent?Hon Dr NICK SMITH: I am used to all sorts of personal abuse. I just get on with doing my job and focusing on the issues that matter.Phil Twyford: Can he answer this question which was posed by the Dominion Post: Nearly everyone can see the problem from the teachers who can't afford a house in Auckland to the employers calling for a huge public house-building programme … Why can't the Government see it?" Hon Dr NICK SMITH: This Government has done more in the reform of the housing market than any Government in living memory. That is why I am proud of our record. Whether it has been the generous HomeStart support the Housing Infrastructure Fund the changes to the Resource Management Act or the changes in the Auckland Unitary Plan—it is those sorts of substantive reforms that will make the difference.Ron Mark: Noting that the only winners in his comprehensive housing plan are speculators and foreigners why will he not admit that his comprehensive housing plan is nothing short of a "Nick-tastrophe"? Hon Dr NICK SMITH: I look at the 20000 New Zealanders who picked up a KiwiSaver HomeStart grant—the most generous support that Government has provided. I look at the doubling in the amount of funds withdrawn from KiwiSaver by those who are buying houses. I look at the 30000 houses per year that are being built—more than double than when I became Minister. I simply challenge the member: find me a period where house construction has grown so quickly. [Interruption]Mr SPEAKER: Order! [Interruption] Order! Mr Faafoi."