1. Social Housing—Social Housing Reform Programme and Other Government InitiativesTODD MULLER (National—Bay of Plenty) to the Minister of FinanceTUESDAY 16 AUGUST 2016Mr Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSSocial Housing—Social Housing Reform Programme and Other Government Initiatives1. TODD MULLER (National—Bay of Plenty) to the Minister of Finance: What recent announcements has the Government made regarding its Social Housing Reform Programme?Hon BILL ENGLISH (Minister of Finance): On Friday the Government announced that the IHC subsidiary Accessible Properties is the preferred bidder for the potential transfer of 1124 social houses in Tauranga. Accessible Properties is the largest NGO provider of social housing in New Zealand. This is good news for tenants and for Tauranga. The tenants will ultimately benefit from a new approach to social housing where we are encouraging community organisations with different and innovative views on support for tenants. It is also good for Tauranga because like most other provincial cities in New Zealand it has a significant tract of State houses of a traditional mode that need to be redeveloped. The Government believes there is a role for further expansion of the community housing sector in delivering social housing.Todd Muller: What other programmes has the Government announced that are contributing to its objective of creating more diverse ownership of social housing?Hon BILL ENGLISH: Where there is strong demand the Government is going to be producing more social housing not just more diverse ownership. Last week we welcomed news that the Tāmaki Regeneration Company has started the procurement of the Tāmaki redevelopment programme from which we will see 1000 existing social houses transformed into 2500 new mixed-tenure houses over the next few years. By the time the Tāmaki programme is completed the current 2800 social houses will become around 7500 homes of all types of tenure adding new housing to the Auckland market on a scale that Government has never done before.Todd Muller: Does the Government stand by its commitment to achieve fair and reasonable value for taxpayers in social housing transactions?Hon BILL ENGLISH: Yes but we need to understand the effects of Government policy on the value of these houses. The houses in Tauranga for instance have been offered with encumbrances on the titles—specifically that they must remain as social houses until the Government agrees otherwise. Purchasers are required to meet various obligations and minimum standards as you would expect and only community housing providers can participate in transactions. The current valuation on these properties does not reflect these encumbrances or obligations. The properties are valued as if a developer were selling an individual property for the best price on the day for maximum capital gain. These houses are required to remain as social houses so their value will be considerably less than the commercial value.Todd Muller: What support has he seen for the social housing reform programme—in particular the goal of growing the community housing sector?Hon BILL ENGLISH: Widespread support—pretty much anyone who is involved with social housing is supporting the direction of these changes. I have read a particular speech which says: Our vision … is to have Housing NZ … and a bigger stronger community housing sector working in partnership … We are committed to [giving] your members … access to [Income Related Rent Subsidies] ... We [want] to grow the whole social housing sector. That means … a priority [for growing] … community providers." That was Phil Twyford. [Interruption] Mr SPEAKER: Order! [Interruption] Order! Before I call the member I require substantially less interjection from one member in particular if he wants to remain for question No. 4.Phil Twyford: How incompetent does a Government have to be to have sold off 298 State houses at an average of $32000 below the council valuation at a time when house price inflation is running at 26 percent nationwide?Hon BILL ENGLISH: The Government is very proud of the fact that it has sold hundreds of houses to State house tenants. We have seen people in their 50s and 60s enjoy for the first time in their lives the benefit of homeownership. The member may be the only person in New Zealand who is surprised to find out that some of our rubbishy hopeless old wrong-sized State houses are worth almost nothing."