Heatley Phil: Housing Accords and Special Housing Areas Bill — First ReadingText is incorporated into the Bound VolumeHeatley Phil: Housing Accords and Special Housing Areas Bill — First Reading[Sitting date: 16 May 2013. Volume:690;Page:10067. Text is incorporated into the Bound Volume.]Hon PHIL HEATLEY (National—Whangarei): I proudly stand and support the Hon Nick Smith on the Housing Accords and Special Housing Areas Bill because he has brought to us a comprehensive solution to housing here in this legislation. He is not a man of silver bullets like the Labour Party—that is what it comes up with. It always comes up with these silver bullets.We in the National Government have understood that there is a range of things that need to be done to address the housing pressures that we have. No. 1 is to upgrade the houses that we have already got. I do not know why the Labour Party in the 9 years it was in Government did not insulate all State houses. It was pointing around to private landlords saying: “You should upgrade all your houses. You rent poor-quality houses out to people.” and yet the Government’s own 70000 State houses under Labour were not even insulated. This Minister of Housing Nick Smith will finish insulating every State house across this country that can be insulated by the end of the year. We are upgrading all the State houses.The Resource Management Act changes and the Building Act changes are covered under No. 2. Cutting red tape—very important.Our third strategy is having consistently low interest rates. I remember the days of Labour during the 2000s when interest rates reached 7 percent 8 percent 9 percent and 10 percent. With interest rates at 10 percent if you had a mortgage of $300000 that was $30000 a year in interest. Under National interest rates are at 5 percent and 6 percent. Every 1 percent in interest rates on a $300000 mortgage is $3000 a year you keep in your back pocket. The Labour Party does not understand that mortgage rates matter. It would manage an economy that would see 8 percent 9 percent or 10 percent mortgage rates and that is a disgrace.Our No. 4 strategy is take-home pay. The Labour Party would tax you. You would have less take-home pay. You would not be able to sustain a mortgage. The Labour Party does not understand.And now the Hon Nick Smith is going to address the issue of land supply through housing accords and the preference to partner with councils to improve housing affordability. Why partner with councils? Because councils matter and local community opinion matters. But we say this: if necessary the Government will intervene in local authority areas to make sure that land supply is freed if no one does anything. If everyone twiddles their thumbs in the way that the Labour Government did for 9 years we will step in.The Auckland Council will be the first council that we do a deal with. We have already discussed that with the council. Fortunately the Labour Opposition has been contacted by the Auckland Council which said: “Vote for this” and it has subdued itself.Hon Member: Len Brown.Hon PHIL HEATLEY: Len Brown has made the call—Hon Member: Deputy leader—I think he’s deputy leader of them.Hon PHIL HEATLEY: —Len Brown the “deputy leader of the Labour Party” has made the call—and we are absolutely delighted that we are going to be in an accord with the Auckland Council to free up more land for housing.Can I say this: the Labour Party is against freeing up land for more housing. It is all about density. Then we have the extreme people on the right who are all about opening up farmland and all the rest. The National Government is saying: “We need a balance.We need to intensify land that is already in housing and we also need new land for housing.” It is a balanced approach. Greenfields and brownfields—that is our approach.Lastly can I compare that with the Labour Party housing policy. This is Labour’s policy: “Michael Joseph Savage built a bunch of State houses 50 years ago so we’ve got credibility.” Well I say to the Labour Party that it would be a sad day if my son Bryn was to go for his first job and when he was asked: “Why should we employ you?” he said: “Because my great-great-grandfather was a good guy.” and the employer said: “But what have you done?” and he answered—like the Labour members would—“Nothing but Michael Joseph Savage 40 or 50 years ago built a bunch of State houses.” Michael Joseph Savage would be turning in his grave to know that they did not even insulate those State houses during the 9 years they were in Government. What a disgrace.