Smith Nick: Riccarton Racecourse Development Enabling Bill Riccarton Racecourse Bill — Second ReadingsText is incorporated into the Bound VolumeSmith Nick: Riccarton Racecourse Development Enabling Bill Riccarton Racecourse Bill — Second Readings[Sitting date: 01 June 2016. Volume:714;Page:11592. Text is incorporated into the Bound Volume.]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 second time. These bills are part of the Government’s both pragmatic and extensive response to New Zealand’s housing challenges and they will introduce a further 600 homes into the Canterbury market. I want to begin by thanking members of the Local Government and Environment Committee particularly the chair Mr Scott Simpson for the work that the committee is doing on a number of housing bills that are about addressing the very practical issues. Last night we passed the legislation regarding home insulation and smoke alarms we have got a big Resource Legislation Amendment Bill and this bill is just part of this package of measures that the Government is taking. I want to acknowledge the sensible refinements that the select committee has made to these two bills.The housing market in Christchurch is recovering well following the devastating Christchurch earthquakes in 2010 and 2011 and increasing supply has been at the core of the Government’s response. The rebuild has seen a number of very successful repair programmes as well as new builds and progress continues to be made to contribute to the residential recovery of the Christchurch and Canterbury housing market. The current pressure on the Christchurch housing market particularly the importance of the issue of more affordable homes comes at a time when the board of trustees that governs the Riccarton Racecourse is proposing to convert part of the large racecourse into housing development to make better use of the racecourse’s land and to be able to support the racing club and industry as well.It is noteworthy that these bills are amending legislation that dates back to 1878. In 1878 it is interesting to note in the New ZealandParliamentary Debates the comment was made that the racecourse was too far out of town and that Christchurch would never expand that far and the area of land for it was questioned for some of those reasons. That was even before the motorcar had arrived in New Zealand. The Riccarton Racecourse Development Enabling Bill and this Riccarton Racecourse Bill effectively take 40 hectares of that Riccarton Racecourse area with the support of the raceway’s trustees and enable 600 homes to be built on this. A condition of the Government allowing that to occur is that at least 180 of those homes need to be within the KiwiSaver HomeStart scheme and below that $450000 price point.Phil Twyford: Boy lucky they’re not in Auckland.Hon Dr NICK SMITH: A total of seven submissions were received on the bills—and I note the interjection from the member about the situation in Auckland. I would say it is true that the situation in Christchurch has changed quite dramatically. That is because the Government’s programme is working. In the last 12 months rents in Christchurch have dropped by 5 percent in the last year. It is interesting to note that actually in Christchurch houses prices are absolutely static. The truth is as my colleague Matt Doocey would note that there are hundreds of good quality three-bedroom homes—brand new—available for about $420000. That is because the Waimakariri District Council has taken a very effective approach to issues of land supply. I would invite members opposite if they are genuinely interested in housing solutions for Auckland to reflect on the Government’s programme in Christchurch and the programme that we have made because it gives us a strong direction as to what the answer might be.In the submissions that were received by the Local Government and Environment Committee some submitters raised concern about the loss of open space. Although the bill does facilitate the loss of the some of the reserve area it is the Government’s view that that reserve space is not that well used. The truth to anybody who has been down there is: is it really just to have many hectares of land sitting effectively under-utilised when we have got families across New Zealand in need of additional housing? That is why we say this bill is the right approach.It is interesting that even after the loss of the area from this reserve for housing it will still be one of the largest racecourse reserves in New Zealand with over 82 hectares of land for this racecourse which is surprisingly close to the city centre. There were concerns that were heard by the select committee about the operation of the Riccarton Market and I want to assure you Mr Assistant Speaker that the board of trustees that administers the racecourse reserve has been working with the community and reserve users like the Riccarton Market operators to ensure that that need can be met and to continue to provide the open public space for public use as well as racing activities. Again this emphasises the point that even with these bills 82 hectares of public space remain.The select committee also heard some concerns raised about the suitability of the land for housing. I can assure the House that the bill ensures that this is a quality residential development—that the land like so much land in Christchurch is suitable for housing. In fact I would invite members who have concerns in that regard to look at the very similar land surrounding it which has proved eminently suitable for that purpose.This legislation is part of our Christchurch Housing Accord which we signed back in April 2014 to get on top of the housing issues in Christchurch. It included the Awatea housing development and if anybody doubts the effectiveness of the Government’s Crown land programme I invite them to go to Awatea and see the hundreds of good quality homes coming on stream at an affordable price. I invite them to visit the developments that are occurring in both Welles Street and Colombo Street which will deliver 420 homes for that city.Phil Twyford: Actual houses or just consents?Hon Dr NICK SMITH: Yes they are houses and if Phil Twyford would bother to go to Awatea he would see the success that this programme is delivering.Phil Twyford: So actual houses that people can live in?Hon Dr NICK SMITH: This pathetic line—[Interruption]—it is pathetic—is that the member says that you are not allowed to use building consents as a measure of how much building activity occurs. Here is a simple challenge for him: would someone spend $15000 getting a building consent for a house if they were not going to build one? The second point is that in all of the last five censuses if you add up the number of building consents and you add up the number of houses that are actually built there is a difference of less than 1 percent indicating that it is in fact a very fair measure.I do want to acknowledge the board of trustees of the Riccarton Racecourse. I want to acknowledge the Christchurch City Council. I want to acknowledge Ngāi Tahu. We have worked very effectively together to be able to progress these bills and unlock this land for housing development in Christchurch.I expect this to be the last phase of the Government’s necessary interventions to support the housing recovery in Christchurch. There were members opposite who questioned whether the Government’s housing response in Christchurch would work. I again draw the attention of the House to the number of homes that have been built in Christchurch the fact that rents have dropped by 5 percent over the last 12 months and the fact that house prices in Christchurch increased by only less than 1 percent in the last 12 months indicating that the housing recovery in Christchurch is well on the way but this further development of 600 homes at the Riccarton raceway will ensure that we complete the important work of the recovery of residential Christchurch from those devastating 2011 earthquakes.