Genter Julie Anne: Social Housing Reform (Flexible Purchasing and Remedial Matters) Bill — In CommitteeText is incorporated into the Bound VolumeGenter Julie Anne: Social Housing Reform (Flexible Purchasing and Remedial Matters) Bill — In Committee[Sitting date: 21 May 2015. Volume:705;Page:3636. Text is incorporated into the Bound Volume.]JULIE ANNE GENTER (Green): Thank you for the opportunity to contribute to this debate on behalf of the Green Party. I have to say that this legislation is quite indicative of the National Party and this Government’s approach. I think we all want better outcomes for everyone in New Zealand but the approach that is often adopted by this National Government is not supported by evidence it is not going to solve the problem and it is actually going to make it worse. Everyone in New Zealand needs a place to live and call home. It is a fundamental human right. The way we build a prosperous and happy society is not with the approach the Government tends to take which is maximising profit for rentiers and vested interested groups and selling off the assets of this State; it is by looking after our people. Surely having a place to live is one of the core components of looking after our people and particularly our children.Social housing could be improved in New Zealand; there is no question about that. There are things we could do better. There may be houses in the wrong place and there may be opportunities for Housing New Zealand to deliver to more people but this legislation is not going to do that. If Housing New Zealand is not able to manage our existing stock well why do we think that social housing providers would be able to do a better job and why do we think the market would be able to do a better job? Certainly all the evidence from overseas shows that in the countries that do get the best outcomes in terms of education childhood development reducing inequality and health outcomes all of that flows through to a strong economy. Of course the purpose of the economy is to look after people not just to have a strong economy for the sake of it. In all of the countries that do that they have a strong role for social support. The State is in the best position to provide social support particularly when it comes to houses for those who are the most vulnerable.The housing crisis in Auckland in particular is about both supply and demand. I just want to refer to the Productivity Commission’s paper on housing affordability from several years ago because if you look at its analysis of the social housing situation it suggests there are areas that need reform. Most importantly it points out that starting reforms at State housing without addressing demand pressures and without building sufficient options for people to move on to is generating a major risk for those who are reviewed out of State housing. I would say that it is pretty clear that the Government has taken pretty much no action to address the demand problems particularly in Auckland. It has not done anything to address the supply issues. It likes to characterise its Resource Management Act reform or “deform” as being all about achieving affordable housing but there is no actual evidence that what it is proposing in the Resource Management Act reforms or the Special Housing Areas legislation is actually going to increase the supply where it needs to increase or reduce house prices.All the Green Party is really asking for is that we take an evidence-based approach and that we look after our people first. There are many steps that could be taken to improve housing affordability in New Zealand. On the demand side there could be a comprehensive capital gains tax excluding the family home and the tax treatment of investment properties could be improved. The Government made a tiny move in that direction. It is too little too late. Of course the Green Party has been calling for the same tax treatment of income from labour for quite a long time and it is nice to see that there has been a slight move in that direction. In addition to tax treatments it makes sense to have restrictions on foreign capital coming in only because we know that foreign capital coming in is having an impact on house prices and land values as it is in many other jurisdictions. There are some pretty obvious ways that we can deal with that like by limiting ownership of land to residents and citizens in New Zealand.On the supply side the State is in the best position to address the supply issue of houses and not just houses but homes and neighbourhoods. The places in Auckland where land values are highest and the places where people want to be is where we need to be providing dwellings for people—where they are close to jobs where they are close to education and not out in the middle of nowhere where they are going to have an incredibly long commute and will have to own multiple cars. There is no point in increasing housing affordability—