Cunliffe David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeCunliffe David: Questions for Oral Answer — Questions to Ministers[Sitting date: 20 May 2014. Volume:699;Page:18075. Text is incorporated into the Bound Volume.]2.Hon DAVID CUNLIFFE (Leader of the Opposition) to thePrime Minister: Does he stand by his statement “there’s no fundamental underlying reasons to believe there’s a problem in our housing market”?Rt Hon JOHN KEY (Prime Minister): Yes particularly when you compare the current situation with that over the 2000s when under Labour house prices doubled and mortgage rates went to 10.9 percent. A house price unit was set up in the Prime Minister’s department which said that the Government should work to increase the supply of land and lower the cost of construction. It was completely ignored. No wonder they are embarrassed—house prices doubled under their watch.Hon David Cunliffe: Why does the Prime Minister not believe that there is a problem in the housing market when New Zealand has the highest house prices in the OECD relative to rents the second-highest compared with income and the fastest-inflating prices in the OECD last year?Rt Hon JOHN KEY: Depending on which part of New Zealand you are talking about there is certainly work that can and should be done and this Government is undertaking that work. That is why for instance we have the special housing areas that we have agreed on and the housing accords in Auckland and Christchurch. That is why we suspended the duties and tariffs on imported building goods. That is why we have reformed the legislation to limit development contributions. That is why we made proposed changes to the Resource Management Act and that is why we trebled the number of Welcome Home Loans from 845 to 2500 to assist first-home buyers. That is why we increased the eligibility for KiwiSaver first home deposits and that is why we have been working very hard to help the Reserve Bank keep interest rates lower for longer.Hon David Cunliffe: I am glad the Prime Minister mentioned all that because I wonder whether he can confirm that his building materials tariff reduction will make less than a 1 percent difference to the cost of an average home and that his social and community housing initiative at the current rate of funding would mean it would take 455 years for National to meet its 20 percent social housing goal?Rt Hon JOHN KEY: The difference on duties and tariffs is I am advised about $3500 for a new home. This is a Government that is doing a series of things some big and some smaller all to make a difference. I can see why Mr Cunliffe thinks there is no point in doing it because Mr Cunliffe was part of a Government that thought there was no point in doing anything which was why house prices doubled under Labour. They went up 96 percent. I advise members to get used to hearing that because they are going to hear it on every radio station and every television debate for a long time to come.Hon David Cunliffe: Given that the Reserve Bank Governor said in recent weeks that house prices were overvalued on several measures why did he miss his last chance to do something significant for first-home buyers in the Budget when 76.4 percent of New Zealanders indicated that that was what New Zealand needed or did the printer just omit the housing chapter from the Budget document?Rt Hon JOHN KEY: Actually one of the most important things the Government did during the Budget was show economic leadership that would firstly keep interest rates lower for longer and secondly ensure that New Zealanders actually got jobs. Justbefore when I said that under Labour’s watch house prices doubled Annette King said under her breath: “Who cares?”. Well that is exactly the point.Hon Annette King: I raise a point of order Mr Speaker. [Interruption]Mr SPEAKER: Order! This is a point of order.Hon Annette King: The Prime Minister’s last comment is incorrect. I did not say it—Mr SPEAKER: Order!Hon Annette King: —and he needs to check his hearing.Mr SPEAKER: Order! And that is not the way to use a point of order.Hon David Cunliffe: Given that the Government’s most far-sighted attempt at economic leadership was the removal of cheque duty from cheque books does he have confidence in the Minister of Finance and the Minister of Housing given that he has allowed house prices to rise by over 40 percent in Auckland on his watch while 46 percent of New Zealanders did not get a pay rise in the last year?Rt Hon JOHN KEY: I reject the numbers and the assertion in the member’s question but if we want to put a bit of realism back into the housing debate let us go to the Roost home loan affordability index. As I am sure the member will know that measures someone who would have an 80 percent mortgage on the average house in that particular area and who earns the average income. That index which you have got to say is by any definition a pretty fair index shows that in fact houses were far more unaffordable—by about 30 percent actually—under Labour. In 2007 if you went to Auckland not only were they more unaffordable than they are today but when Maryan Street—you will remember her; she was your Minister of Labour—was asked the question: “Is this a crisis?” she said: “No it is not a crisis.” So when those members are in Opposition and when it is not as bad as it was when they were in Government it is a crisis but when they were in Government it is: “Nothing to see here. Nothing to do.” and that was the point. Nothing got done. As Annette would say “Who cares?”. [Interruption]Mr SPEAKER: Order!Hon David Cunliffe: I seek leave to table a copy of the labour cost index which confirms that 46 percent of New Zealanders did not get a pay rate increase last year.Mr SPEAKER: That document is freely available to all members.Hon David Cunliffe: I raise a point of order Mr Speaker.Mr SPEAKER: This is a further point of order?Hon David Cunliffe: The Prime Minister has disputed the matter and clearly does not have access—Mr SPEAKER: Order! No. The member is now trying to use the ability to table a document to continue a political debate. That is not the appropriate thing to do with the seeking of leave to table a document.Hon David Cunliffe: When will the Prime Minister stop playing politics with the Resource Management Act amendment bill and split it to allow the housing affordability measures to pass through the House on a bipartisan basis?Rt Hon JOHN KEY: I am happy to tell the member exactly the same thing that I told the press gallery on the way in which is if the member’s party wants to support the Resource Management Act amendment bill as the Government has been wanting to introduce it and send it off to the select committee for every New Zealander to have their say about what they think the Government would welcome that—and Mr Cunliffe should come up and have a nice glass of wine and we can celebrate that in my office tonight. See you at 10 o’clock.Hon David Cunliffe: I seek leave to table a bottle of good Pinot noir if he would like to meet to discuss the second part of the bill on housing affordability alone.Mr SPEAKER: Order! We do not use the seeking of leave to table a bottle of wine. If he wants to share—Hon David Cunliffe: To clarify I would be very happy to table a bottle of PM’s Pinot which apparently is in a blind trust that the PM does not know about.Mr SPEAKER: Order! And the member is now also—[Interruption] The member is abusing the system for seeking to table documents.Rt Hon JOHN KEY: Speaking to the point of order—Mr SPEAKER: I will hear—I am hoping that it is helpful to the House—from the right honourable Prime Minister.Rt Hon JOHN KEY: If the member is so keen to have a bottle of my PM’s Pinot—and I can understand why he would be—I will make sure his office has one delivered to him this afternoon. [Interruption]Mr SPEAKER: Order!Hon David Cunliffe: I raise a point of order Mr Speaker.Mr SPEAKER: This will be the last one.Hon David Cunliffe: I wonder whether you could make a considered ruling on whether it is possible for the Prime Minister to make an undertaking to the House to deliver a bottle of wine when he has no idea where it apparently comes from.Mr SPEAKER: Order! Now that members have had their fun we will get back to the serious business of questions for oral answer.