Little Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Oral Questions — Questions to Ministers[Sitting date: 24 May 2016. Volume:714;Page:11099. Text is incorporated into the Bound Volume.]1.ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he have confidence in his Minister for Building and Housing?Rt Hon JOHN KEY (Prime Minister): Yes.Andrew Little: How can he have confidence in bumbling Nick Smith who promised 500 hectares of new housing on Crown land in the last Budget but found only 13 hectares and is now claiming he never made any promise at all?Rt Hon JOHN KEY: Apologies—I just could not hear the question.Mr SPEAKER: I will allow the question to be heard. It would be—[Interruption] Order! The question as I heard it was certainly one that was going to lead to some interjection but so that it is heard clearly I do not want any interjection particularly from my right-hand side.Andrew Little: Thank you Mr Speaker. I am obliged. How can he have confidence in Nick Smith who promised 500 hectares of new housing—Hon Dr Nick Smith: Did not.Andrew Little: —on Crown land in the last Budget but found only 13 hectares—he is over there—and is now claiming he never made any promise at all?Rt Hon JOHN KEY: I have confidence in the Minister for Building and Housing because he has undertaken a wide range of initiatives when it comes to housing. What we are seeing is a considerable increase in the number of houses that have been built. Yesterday the Minister announced that three sites in Auckland would be paving the way for 750 new homes; if combined with the Moire Road development last year it is a total of 940 homes.Andrew Little: Given his statement about housing “I don’t think it’s a crisis” why does Statistics New Zealand data show falling homeownership rates every quarter under his Government?Rt Hon JOHN KEY: I always have to check those facts when I see them from the Labour Party but homeownership rates around the world actually have been reducing. One thing we do know is that under this Government we are helping a lot of people into their first home. One example of that is the nearly 12000 people who have been helped into their first home under the KiwiSaver HomeStart grant scheme totalling $55.6 million.Andrew Little: I seek leave to table information provided by the Parliamentary Library on the dwelling and household figures and ownership rates which shows a declining—Mr SPEAKER: Order! [Interruption] Order! The document has been described. Before I put the leave it is not simply a précis of Statistics New Zealand is it?Andrew Little: Not at all.Mr SPEAKER: OK then I will put—[Interruption] Order! I will put the leave. [Interruption] Order! Leave has been sought to table the information prepared by the Parliamentary Library. Is there any objection to it being tabled? There is none. [Interruption] Order! Can I just have a little less assistance from Mr Brownlee.Document by leave laid on the Table of the House.Andrew Little: Is Kim Campbell chief executive of the Employers and Manufacturers Association (Northern) right when he says “Whatever is happening now—it’s not working.” and “What we need is a massive Government-led house building programme.” which funnily enough sounds a lot like Labour’s KiwiBuild programme?Rt Hon JOHN KEY: He is absolutely right when he says that whatever is happening now is not working if he is talking about the Labour Party. [Interruption]Mr SPEAKER: Order! To my left the Leader of the Opposition is asking for a supplementary question.Andrew Little: When Kim Campbell the Council of Trade Unions’ Richard Wagstaff and even Paula Bennett say there is a crisis why does he not just admit that the Government’s housing policies have failed?Rt Hon JOHN KEY: The Government’s response in housing has been quite comprehensive and that is why we are seeing 9500 new homes being built in Auckland the highest number in more than 11 years. That is why we are seeing more people employed in construction. That is why we are seeing people accessing KiwiSaver HomeStart to get into their first homes. This is an issue that takes quite a lot of catch-up because of the work that is required but I will say that this Government and under Minister Smith has been implementing a wide range of policies. The previous Government sat around for 9 years and did absolutely nothing.Andrew Little: Have any of these Government policies reversed the fall in homeownership: (1) cheaper Gib board which has now got more expensive; (2) trying to build houses on cemeteries; or (3) building less than 3 percent of the promised 39000 houses in special housing areas?Rt Hon JOHN KEY: Once again the member wishes to make things up and he is welcome to do that. But I will tell you what is working and that is the fact that 24000 houses and sections have been consented in the first 2 years of the housing accord; that there are now 154 special housing areas in Auckland; that the rules have been tightened on property investors; that more Crown land has been released; and that thousands and thousands of people—in fact 42000 I think additional people—are in the area of housing and construction. A great deal is happening in Auckland housing. [Interruption]Mr SPEAKER: Order! [Interruption] Order! Mr Brownlee!Andrew Little: Is it not time to stop the excuses and admit that after 8 years it is the failure of his policies that means that homeownership has fallen every quarter under his Government?Rt Hon JOHN KEY: Firstly I reject the assertion from the member. Secondly as I have pointed out already today there are a great many initiatives that the Government has undertaken. I just look back at the 9 years under the previous Labour Government and all we saw was interest rates going up.Metiria Turei: Why is his Government prioritising the building of 4500 new hotel rooms for tourists as part of “Project Palace” when those resources could be directed to the Minister for Building and Housing in order to help build homes for the 4500 people on the State house waiting list?Rt Hon JOHN KEY: They are different issues of course. One is around tourism and the fact that it has become such a massive employer in New Zealand now. I would have thought that the member would want to welcome that. Regarding many of the hotels that are being built it will ultimately be decided by the private sector whether it wants to invest in them—and they are in places like Queenstown. This might come as a shock to the member but not every builder who lives in New Zealand wants to move to Auckland.Metiria Turei: Does the Prime Minister not think that in the midst of a housing crisis his Government should prioritise “Project Homes for New Zealanders” and not “Project Palace” for tourists?Rt Hon JOHN KEY: I reject the member’s assertion.Metiria Turei: Is this the Prime Minister’s new social housing policy where he builds expensive hotel rooms so that homeless people can stay in them and rack up huge debts to Work and Income instead?Rt Hon JOHN KEY: No.Metiria Turei: Does he genuinely think that 4500 people on the waiting list for a State house and more than 30000 New Zealanders in severe housing deprivation does not mean that we are in a national housing emergency one that demands his full attention?Rt Hon JOHN KEY: Like many issues that the Government faces this does have my full attention. What you have already seen announced by the Minister for Social Development is $41 million being applied to 3000 places some of which are new and some of which are existing but they allow people to access what will no longer be a loan but a grant for social housing. You have also seen the Government moving now on income-related rents for social housing providers. You have seen the Government insulate nearly 300000 homes. You have seen the Government making sure that there are renewable tenancies which benefit those with the greatest need. You have seen the Government working in areas like the Tāmaki redevelopment. The Government is doing a great deal—Mr SPEAKER: Order! The answer is long enough.