Seymour David: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeSeymour David: Oral Questions — Questions to Ministers[Sitting date: 04 May 2016. Volume:713;Page:10747. Text is incorporated into the Bound Volume.]6.DAVID SEYMOUR (Leader—ACT) to the Minister for Building and Housing: Does he stand by his statement “If you look at the Massey University Housing Affordability Index independently produced by that university actually housing affordability in Auckland and every other market in New Zealand is actually more affordable now than when National came to Government”; if so what would the Massey University Housing Affordability Index rating be if interest rates returned to the same level as they were in 2008?Denis O’Rourke: I raise a point of order Mr Speaker. Standing Order 381 requires that questions must be concise. This question is 69 words long and is hardly concise. It should be ruled out of order.Hon Christopher Finlayson: Point of order—Mr SPEAKER: I will hear from the Hon Chris Finlayson.Hon Christopher Finlayson: As acting Acting Leader of the House I can advise you that it is the primary question. It draws on a quote rather than a rambling supplementary question. [Interruption]Mr SPEAKER: No I do not need any assistance from either member. It is a primary question and therefore—[Interruption] Order! Therefore it is often longer than a permitted supplementary question. In this case the question contained a very long quote that the member obviously thought was necessary to make his point as he was asking the question. The question has been allowed and it has been accepted and now it can be answered.Hon Dr NICK SMITH (Minister for Building and Housing): Yes it does show houses are more affordable now both nationally and in Auckland than they were in 2008. If interest rates return to 2008 levels of over 9 percent it would put families with a mortgage under extreme pressure. That is why good economic management that keeps interest rates low for longer is absolutely critical for families and homeownership.David Seymour: What control does the Minister for Building and Housing have over interest rates in New Zealand?Hon Dr NICK SMITH: The Minister for Building and Housing does not have that much influence but I do say that overall economic management has a huge impact. If Governments were to adopt the big-spending policies—every time that has occurred in history it has pushed interest rates up it has made houses unaffordable and it has impacted on things like inflation and that is why there is a very real connection between good economic policy and good housing policy.David Seymour: What control does the Minister for Building and Housing have over land supply and ultimately house prices in New Zealand?Hon Dr NICK SMITH: The predominant Act that regulates land supply is the Resource Management Act and there is no question that at the core of New Zealand’s housing affordability problems has been both the Resource Management Act and the way in which councils have narrowly restricted land supply. That is why we have seen the price of sections go up much more than the price of the built house and that is why parties that are committed to improving housing affordability will support reform of the Resource Management Act.Phil Twyford: Does he agree with the author of the Massey Home Affordability Report Dr Susan Flint-Hartle who said that Auckland is one of the least affordable cities in the world that the Government has not done nearly enough and that the Minister’s comments about her report were “obscuring the real situation.”?Hon Dr NICK SMITH: The member chooses to only partially quote what she said. [Interruption] She also said—Mr SPEAKER: Order! If the member wants the question answered he is going to have to get a little more cooperation from a couple of his colleagues.Hon Dr NICK SMITH: The very same researcher said that I was factually accurate and that according to Massey University’s index housing in both Auckland and New Zealand is more affordable than when the members and colleagues of his party were in Government.Alfred Ngaro: Are there other independent housing affordability indexes than that of Massey University; if so what do they show?Hon Dr NICK SMITH: The AMP360 index which was previously known as the Roost index has measured housing affordability since 2002. It measures the proportion of a person’s median income that would be required to service a mortgage for an average home. Nationally that index was at its very worst in 2008 at 83.4 percent. It is currently 59 percent—i.e. houses nationally are 24 percent more affordable than what they were in 2008. In terms of 2008—and for the record I asked them to check it—the index was 101 percent in Auckland during 2008 and that is the worst it ever was after 9 years of a Labour Government.David Seymour: Why was the Minister prepared to take the credit for falling interest rates which he has conceded he cannot control when the factors such as supply which he says he can control have deteriorated over the period referred to in his quote?Hon Dr NICK SMITH: I do accept the key element of housing that I do have responsibility for is supply. I note in the period that I have been the Minister house construction has gone from 13000 a year to 27000 a year. In fact the housing build rate has increased more in the last 3 years than it has at any time in New Zealand history.