Twyford Phil: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Questions for Oral Answer — Questions to Ministers[Sitting date: 14 May 2014. Volume:698;Page:17830. Text is incorporated into the Bound Volume.]12.PHIL TWYFORD (Labour—Te Atatū) to theMinister of Housing: Does he stand by his statement that collecting the data on offshore ownership of houses “would be a waste of public money”; if so what would the cost be?Hon Dr NICK SMITH (Minister of Housing): The conclusion of Treasury the Ministry of Business Innovation and Employment the Inland Revenue Department and the Productivity Commission is that overseas ownership of housing in New Zealand is small. The Inland Revenue Department data I released yesterday shows that 22000 rented properties are owned by people living overseas which works out at 1.2 percent of our 1.8 million homes. This number has barely changed in the last 5 years. The biggest group of these absentee owners are New Zealand citizens currently living overseas like those doing an OE. I do stand by my statement that a register would be a waste of money. My advice from officials is that it would cost many millions of dollars. I cannot justify the spending on trying to work out whether it is 1.2 percent or 1.3 percent. My focus is on the real issues that will increase the affordability of homeownership of Kiwi families rather than on chasing these red herrings.Phil Twyford: Why did he say this morning that it would be a wild-goose chase and a waste of public money to collect data on foreign ownership of houses when the Reserve Bank deputy governor also said this morning that it would be useful if the Government started collecting data on foreign buyers. What makes him right and the Reserve Bank wrong?Hon Dr NICK SMITH: Because the member only half quotes what the Reserve Bank governor said. He said that that is something that the Government would have to look at more broadly. I am quite satisfied with the data that we have from the Inland Revenue Department. It says the number is 22000. That includes many New Zealand citizens who own property in New Zealand. I just say to members opposite: let us focus on the issues that matter and will actually make Kiwi homes more affordable.Phil Twyford: Why will the Government not require the conveyancing solicitor at point of sale to certify whether the purchaser is a resident or citizen and apply the Overseas Investment Act criteria in the case of trusts and companies; and would that not be a reasonable and cost-effective way to gather reliable data?Hon Dr NICK SMITH: I am just not satisfied that that information will provide any useful purpose to the challenge our country has of making houses more affordable. You see we had a Productivity Commission report. It independently received submissions from all over New Zealand. It said there are five very important things that we need to do. It did not mention foreign ownership because it will have no material effect. It is just the cheapest trick in the political book to blame the foreigners when New Zealand has a challenge.Phil Twyford: Why has he been going around saying his data shows there are only 20000 houses—or 1 percent of homes—owned offshore when he knows full well that that figure is 20000 offshore owners and given the high incidence of multiple property ownership does he not realise that the real figure is likely to be about three times more than that?Hon Dr NICK SMITH: The report from the Inland Revenue Department said that there were 20000 overseas owners. The first thing it also says is that the largest number of those are New Zealand citizens who own property in New Zealand. I challenge the member opposite: is he going to ban the Kiwi who does his overseas experience frombeing able to own a home in New Zealand? The further point is that the next-biggest group are Australians. Are members opposite proposing to ban Australians from being able to own homes in New Zealand? It is a non-issue. It has not changed in the 5 years that we have been in Government. Let us focus on the things that matter.Phil Twyford: Why should Kiwi first-home buyers have to put up with being outbid at auctions by offshore speculators bidding on the end of a telephone and what is the benefit to New Zealand of his putting the interests of cashed-up offshore speculators ahead of New Zealanders?Hon Dr NICK SMITH: This Government is totally committed to improving both the affordability and the ownership of homes. That is shown by the fact that independent studies show that housing affordability has improved 30 percent since house prices doubled and interest rates went through the roof under members opposite. I say to members opposite as well that it is the cheapest trick in the political book—whether it is joblessness or whether it is crime—to somehow invent the idea that it is the foreigners when all the advice from officials is that they are having negligible effect.