Bennett David: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeBennett David: Oral Questions — Questions to Ministers[Sitting date: 04 November 2015. Volume:709;Page:7689. Text is incorporated into the Bound Volume.]3.DAVID BENNETT (National—Hamilton East) to the Minister of Finance: How is the Government’s programme to improve housing supply supporting a growing economy and macroeconomic stability?Hon BILL ENGLISH (Minister of Finance): The issue of the housing market is proving to be one of the challenges for macroeconomic policy. Last week Statistics New Zealand announced 26000 building consents were issued in the year to 20 September 2015 the highest number in 8 years and double the number issued in 2011. So the supply of housing is growing about as fast as it ever has in New Zealand but there is much more to do. Red tape around land use can affect growth and elevated house prices increase the risks and the costs of a house price correction affecting economic and financial stability. We will continue to work on growing the number of consents by working with the councils that actually make the decisions.David Bennett: What progress has the Government made in improving housing supply?Hon BILL ENGLISH: Probably the most important shift was passing the special housing areas legislation and there are now over 100 special housing areas and accords signed up with eight councils. We also are now getting into growing the supply of housing on Government land—in Auckland for instance in Hobsonville Tāmaki Weymouth and more to come. We are continuing to reform the Resource Management Act to enable councils to make changes that they now all really want to make. They were initially sceptical about such changes but now would prefer to have easier quicker planning processes so they can accommodate growth.David Bennett: What steps is the Government taking to support first-home buyers and ensure investors pay their fair share of tax?Hon BILL ENGLISH: Because it is a challenge for first-home buyers to get into the market earlier this year the Government rolled out the HomeStart scheme—a $420 million commitment which will help 90000 Kiwis into their first homes over the next 5 years. In respect of investors on 1 October just a month ago the Government introduced a brightline 2-year rule to clarify the tax treatment of gains on the sale of residential property excluding the family home. Earlier this week on 1 November the Reserve Bank introduced loan-to-value ratio rules for investors to reduce financial system risk. This may also help to moderate house price growth.David Bennett: What other steps are being taken to improve housing affordability?Hon BILL ENGLISH: Probably one of the more important steps for the Government has been to take part in the formation of the new Auckland Unitary Plan. Although the unified Auckland Council has been in place for some years it is still technically working off the plans of the previous seven or eight councils. The Government has been a significant submitter to the independent hearings panel and we will be taking a close look at its plan when it reports back to ensure that the plan allows for the kind of growth that is forecast for Auckland.