5. Housing—Affordability and AvailabilityPHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and ConstructionHousing—Affordability and Availability5. PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Construction: How can the Government's housing policy be a success as the Prime Minister said when four out of five renters cannot buy a house in their area without going into financial hardship?Hon Dr NICK SMITH (Minister for Building and Construction): Firstly because we have been successful in trebling new home construction from the all-time low of late 2008 to a level of investment of over $12 billion a year—an all-time high. Secondly it is because of the successful ramping-up of assistance to first-home buyers. In 2008 the Government provided only $10 million worth of assistance. The KiwiSaver HomeStart scheme is now providing $700 million worth of assistance per year. Thirdly I would note that the housing affordability measure yesterday mentioned by the member showing four out of five people in that category is actually a lower number in housing affordability stress than when National became Government.Phil Twyford: Does he accept that with such low numbers of Aucklanders getting help from HomeStart the scheme has failed in the place where first-home buyers most need help and the fact that he is now looking at bumping up the price limits for the third time in 4 years simply means that his scheme cannot keep up with house prices under his policies?Hon Dr NICK SMITH: I note that the KiwiSaver HomeStart scheme in its first year helped 12000 New Zealanders into their first home. In the last year it has helped 15000 New Zealanders into their own home. This is the most generous support that a Government has provided in more than a generation to get people into HomeStart into homeownership.Phil Twyford: It's not working Nick.Hon Dr NICK SMITH: I simply say to the member opposite that yes it is working and it is very popular.Sarah Dowie: Does the report released yesterday by the Ministry of Business Innovation and Employment have information that highlights successful initiatives in improving housing affordability?Hon Dr NICK SMITH: Yes the report does highlight the dramatic improvement for both first-home buyers and renters in Canterbury to the point where housing is way more affordable today than it has been—long before that city was hit with earthquakes. The strategy adopted in Canterbury was to radically free up land supply and create genuine competition in the provision of sections. I note that the price of an average section in Christchurch is now $190000 as compared with $530000 in Auckland. It paves the way for what we need to do in other areas and that is why things like the Resource Management Act reform and the National Policy Statement on Urban Development show the way forward on improving affordability.Phil Twyford: When he said It appeared Auckland house-hunters were holding back until prices stabilised and supply increased" did he know that the average Auckland house price has gone up by more than $100000 in the last year and that the supply shortage is getting worse by 6000 houses a year on top of the 40000 home deficit that has built up on his watch?Hon Dr NICK SMITH: I would invite the member to have a look in the mirror because during the last Labour Government house prices more than doubled and it did nothing. Secondly I would note that with the huge ramp-up in housing construction in Auckland as part of the supply the last 6 months has seen house prices in Auckland flat. I think members of the House should welcome that.Phil Twyford: Does he agree with the Salvation Army the country's most respected social agency which today endorsed Labour's KiwiBuild plan and said: "Rather than messing around with the transfer of State houses the Government needs to be a whole lot more ambitious about the number of affordable houses it can build."?Hon Dr NICK SMITH: The current Government is building more houses directly than any in more than 25 years. In respect of KiwiBuild I would just love the Labour Party to explain how it can possibly recycle the money every 3 months to be able to achieve its targets. It is a pipedream it is a sound bite it is anything but a credible policy.Phil Twyford: Did he keep his HAM or Housing Affordability Measure hidden from the public for so long because it quantified the national housing crisis showing that 86 percent of renters in Auckland cannot buy a house without going into financial hardship; or was it because it was so politically damaging as his officials suggested?Hon Dr NICK SMITH: Unlike members of the Opposition this Government respects the independence of Statistics New Zealand. In fact I know members opposite repeatedly attack it but I would draw to their attention that the Housing Affordability Measure shows that the worst deterioration in housing affordability occurred between 2003 and 2008 during which period the Labour Government did absolutely nothing."