4. Housing Affordability and Availability—Residential Building Activity and Building Consent DataJOANNE HAYES (National) to the Minister for Building and HousingHousing Affordability and Availability—Residential Building Activity and Building Consent Data4. JOANNE HAYES (National) to the Minister for Building and Housing: What reports has he received to show the Government's housing reform programme is increasing the supply and affordability of housing?Hon Dr NICK SMITH (Minister for Building and Housing): The latest figures show that residential building activity in the last year grew by 21 percent to over $12 billion which is the highest level of investment in residential activity that New Zealand has ever seen. The figure of 29627 homes is more than double that of 5 years ago and is the second highest on record. Secondly if we look at the real estate figures out today they show that for the first time in 5 years house price increases in Auckland are down to single digits at 7 percent. That is welcomed. Today we have also had the Massey University housing affordability data released which showed that housing affordability has improved across New Zealand in every region except Hamilton and Queenstown and that housing affordability in every part of New Zealand is better than it was under the previous Government.Joanne Hayes: Was the claim made yesterday in Parliament that only 18 affordable houses had been built in Auckland in the last 3 years correct?Hon Dr NICK SMITH: No. More than 10 times that number have been built in the very first special housing area. At Weymouth 190 homes have been built with an average price of $450000. Then if you go to the second special housing area in Hobsonville 70 have been built below $400000 212 beyond $500000 45 below $450000—a total of 327 homes in the second housing area. If we look at the data from the HomeStart scheme 300 grants have been made in Auckland for new homes since the scheme began. The claim of just 18 in 3 years is so disconnected from reality that I assume Mr Trump wrote it. [Interruption]Mr SPEAKER: Order! I have got one or two regular interjectors in my sights. I will deal with them relatively severely if they continue to yell across the House and on this occasion it is occurring from both sides of the House. Take that as a warning.Rt Hon Winston Peters: How can the Minister boast about his Government's housing reform programme when his own department does not collect code of compliance certificates issued once a house has been built?Hon Dr NICK SMITH: That member has made the mistake of disconnecting the number of code compliance certificates from building consents and there is a very simple reason for that Mr Peters. There is a very simple reason: when you build an apartment complex of 100 homes there are 100 building consents but just one code compliance certificate. The member needs a far better practical knowledge of the building sector.Rt Hon Winston Peters: If the Reserve Bank and Auckland Council say that in Auckland last year 9251 consents were dished out but only 5073 house completions happened—less than half of the 13000 needed for migrants going to Auckland alone—why does the Minister not just sit down and resign?Hon Dr NICK SMITH: Because that member is so disconnected from the realities of the building industry that actually the amount of building activity in Auckland and across the country is at record levels—now over $12 billion per year. That is reflected in the GDP figures that is reflected in the employment figures so every part of the building system is going gangbusters. Rt Hon Winston Peters: I seek leave to table a Local Government Official Information and Meetings Act request from Auckland Council to us exclusively—New Zealand First—and also Mr Smith's answer on the matter to us to a written question. Perhaps we will see who is disconnected now.Mr SPEAKER: Order! I will put the leave with regard to the first document. I will not put leave with regard to the second document which I take to be an answer to a written question which is already available to all members. Leave is sought to table some local government information from the Auckland Council to the New Zealand First Party. Is there any objection to that being tabled? There is not; it can be tabled.Document by leave laid on the Table of the House.Joanne Hayes: What credence does he give to claims that building consent data cannot be relied upon given that some developments like the high-profile Flo Apartments development involving about 100 apartments are now not proceeding?Hon Dr NICK SMITH: The reason I have confidence in the monthly building consent data is that it co-relates historically so closely to census data on the number of changes in houses. For instance in Auckland between the last two censuses the number of homes increased by 33777; the number of building consents issued over the relevant period was 33703—i.e. within 1 percent. There have been some townhouse and apartment developments like Flo that have not proceeded but building consents for those have not been issued or counted. Building consents trigger substantial fees and levies amounting for a development such as Flo to hundreds of thousands of dollars and are generally sought only when finance is confirmed and development is ready to go. That is why this House can have confidence in those very strong growing building consent numbers. Joanne Hayes: What progress has been made in minimising the impact of appeals on bringing the new Auckland Unitary Plan into effect and enabling the 420000 new home capacity to be utilised?Hon Dr NICK SMITH: The Government has been working with the Auckland Council to minimise the impact of those appeals and to take advantage of the new unitary plan. I am very pleased today that the appeal pleadings have been significantly amended so that they impact only on 29000 of those 420000—i.e. about 7 percent. That means as of today that 90 percent of the new housing capacity in the Auckland Unitary Plan takes effect.