King Annette: Questions for Oral Answer — Questions to Ministers Questions to Members 
King Annette: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:670;Page:16811] 
4. 
Hon ANNETTE KING (Deputy Leader—Labour) 
 to the  
Prime Minister 
: Has the “underclass” as he called it increased or decreased since he became Prime Minister? 
Rt Hon JOHN KEY (Prime Minister) 
: 
 The member will be aware that just as the Government does not collect statistics on hard-working Kiwis or those on “the other side of town” to whom her party leader refers neither do we keep a measure of the number of people who could be described as belonging to an “underclass” in New Zealand. However I can report that this Government has through a number of policies tackled the problems that under Labour simply removed hope and opportunities from the lives of those people. 
Hon Annette King 
: If this Government has as the Prime Minister claims tackled issues the previous Government did not why are we seeing headlines like “3607 ask for help to live” with a city missioner saying that a new level of poverty is emerging as incomes stay the same and prices rise? Has she got it wrong as he has been saying that everybody is better off? 
Rt Hon JOHN KEY 
: It is worth remembering that wages on average have gone up about 16 percent and prices have gone up 6 percent which is a net increase of 10 percent. It is worth contrasting that figure with Labour’s really pathetic performance where over 9 years wages went up in real terms by only 3 percent. It is true of course that there is a recession and we have had a Labour Government that cared so little about education standards that it did not mind whether people who left school could read or write properly. Some of those people have not had the skills and the recession has tossed them out of a job. 
Hon Annette King 
: If he is accurate in his claims why did the Salvation Army in its state of the nation report—which he uses when it suits him—say that demand for food parcels continues to break records and that food poverty now being witnessed by the Salvation Army is nearly twice what it was 4 years ago? 
Rt Hon JOHN KEY 
: It is true that the global recession has seen more New Zealanders on a benefit and that obviously has an impact. But it is also true that anyone on a benefit actually has a lifestyle choice. If one budgets properly one can pay one’s bills. That is true because the bulk of New Zealanders on a benefit actually pay for food rent and other things. Some make poor choices and they do not have money left. 
Hon Annette King 
: Can he explain to the House how spending tens of thousands of dollars on a Community Max programme to catch 38 horses for Tame Iti’s dowry and then letting them go has helped to reduce the “underclass” in New Zealand? 
Rt Hon JOHN KEY 
: I do not know the details of that Community Max scheme but I can say that overall the programme has worked: 70 percent of all New Zealanders who went on Community Max are no longer on a benefit. I claim that to be success. When I look at the Labour performance what has it done when it comes to those people? Nothing other than carp on about it. 
Hon Annette King 
: Who is the Minister responsible for the implementation of Community Max and is Simon Power the Acting Minister at present; if so has he been adequately briefed on the programme before making comments on it? 
Rt Hon JOHN KEY 
: The Minister for Social Development and Employment. 
Moana Mackey 
: What impact does he believe New Zealand’s ever-worsening housing shortage will have on the ability of struggling families to access affordable and appropriate housing given a national shortage of 70000 dwellings predicted further shortages of 25000 dwellings over the next decade a growing Housing New Zealand Corporation waiting list of nearly 11000 an estimated 20000 Kiwis now classified as homeless and more than 80 Auckland families moving into overcrowded housing situations every week? 
Rt Hon JOHN KEY 
: Firstly house prices if anything have been either falling or remaining flat so there is actually no indication of a housing shortage. Secondly if someone actually wants to buy a house two things make a fundamental difference to that. The first is after-tax income. This Government has cut taxes so after-tax income has risen. The second thing is getting inflation under control. This Government has got control of inflation and therefore interest rates have stayed low. They are all the reasons why New Zealanders can get into a home. The third thing is that this Government has not focused on building new State homes; it has focused on getting more people into those homes. That is why we have implemented a number of policies that have made a difference in that area. 
Moana Mackey 
: Can he confirm that he does not believe New Zealand is facing a housing shortage? 
Rt Hon JOHN KEY 
: I can confirm that house prices have either been falling or going sideways. Generally in a market where there is increased demand prices rise. 
Hon Trevor Mallard 
: I raise a point of order Mr Speaker. We have been trying to work with our team on asking straight questions. That question was very straight. It asked for an opinion on whether there had been a housing shortage. 
Hon Gerry Brownlee 
: That’s an opinion. You can’t seek an opinion. 
Hon Trevor Mallard 
: Of course we can seek an opinion—we have been able to for the last 5 years. 
Mr SPEAKER 
: There should not have been an interjection from the Leader of the House on a point of order. I heard what the member said. The point of order raised was not unreasonable. Although the question did not really seek an opinion it asked the Prime Minister whether he could confirm that there is no housing shortage in New Zealand to which the Prime Minister said he could confirm something else. That is not really addressing the question. I do not expect the Prime Minister to give any particular answer but he really should address the question in respect of how the question related or did not relate to a housing shortage. The Prime Minister in answering should give some indication of what he understands in respect of whether or not there is a housing shortage. 
Rt Hon JOHN KEY 
: In some parts of New Zealand there will be housing shortages as the population increases; in others there will not be. Overall prices have either been falling or staying the same which does not indicate a shortage. 
Hon Phil Goff 
: Can the Prime Minister confirm that new housing starts are currently at the lowest rate in 45 years and that consequently the Registered Master Builders Federation is predicting a major housing crisis within the next 18 months? 
Rt Hon JOHN KEY 
: The first point is correct. The low rate indicates that there is not an overwhelming demand for housing at the moment. If there was there would be a long list of people piling in. It reflects what is actually happening which is that the Government’s policies are working. We are rebalancing the economy away from being one that is solely driven by housing to being one that has a more diversified investment portfolio.