Williams Poto: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeWilliams Poto: Oral Questions — Questions to Ministers[Sitting date: 02 July 2015. Volume:706;Page:5071. Text is incorporated into the Bound Volume.]12.POTO WILLIAMS (Labour—Christchurch East)to the Minister for Building and Housing: Does he stand by his statement in relation to affordable housing in Christchurch that he is “on top of the problem”?Hon Dr NICK SMITH (Minister for Building and Housing):Yes. Average rents grew by 9 percent in 2012 12 percent in 2013 and another 9 percent in 2014 but have dropped by 4.7 percent in the past year. Median house prices grew by 9 percent in 2012 7 percent in 2013 and 15 percent in 2014 but house prices in Christchurch have dropped by 3.6 percent in the past year.Poto Williams: Why did he say that he was encouraged by affordable housing figures for Canterbury when his housing accord has failed to meet its own target of 25 percent of new houses being affordable in all but one of the past 6 months?Hon Dr NICK SMITH: The housing accord in Christchurch was signed just 6 months ago. An important part of it is the change in the district plan which has not yet occurred. The HomeStart scheme began only on 1 April but I note that in house prices in rents and in affordability all have improved over the past 6 months.Poto Williams: How can he say that he is on top of the problem when Christchurch rents are still $82 per week higher and house prices are still $110000 higher than they were before the February 2011 earthquake?Hon Dr NICK SMITH: I would point out that if you look at the Massey University housing affordability study it actually shows that despite the earthquakes houses in Christchurch are 30 percent more affordable than when we became the Government—30 percent more affordable than when we became the Government—which actually shows simply how bad things had got at the end of Labour’s term in respect of housing costs.Paul Foster-Bell: What does the latest data on housing affordability show in Canterbury and how does this compare with the previous quarter the past year and when National came into Government?Hon Dr NICK SMITH: The Massey University housing affordability index is out just today. It looks at house prices. It looks at mortgage interest rates. And it also compares incomes. It shows that affordability in Canterbury improved over the previous quarter that it has improved over the past year and as I noted in my answer to the previous question that it is 30 percent more affordable than when we became the Government.Poto Williams: What does he say to Sonya Tranter and her children and to two other families forced to live in an overcrowded house in Linwood because it was all they could afford; and does he agree with the Christchurch Press that there is no bigger crisis facing the region than security and affordability of housing?Hon Dr NICK SMITH: I would say two things. Firstly to the woman and family concerned: if she looks at all of the data—rents house prices and housing affordability—things are significantly better than they were after 9 years of a Labour Government. I would say: look at the data that shows that on housing in Canterbury we are on top of the problem.Poto Williams: Which of the five excuses that he gave the Press has the most credibility: when he disputed that there was a 25 percent target; when he challenged Labour’s figures which turned out to be correct; when he claimed incorrectly that he was exceeding the target; when he said that it was too early to draw conclusions; or when he tried to blame the council?Hon Dr NICK SMITH: I simply draw to the member’s attention the fact that rents in Christchurch have dropped by 4.7 percent over the past year. If we look at house prices in Christchurch over the past year they have dropped by 3.6 percent. That is an improvement in affordability and I do not know what the member’s problem is.