11. Question No. 11—Housing (Public Housing)BROOKE VAN VELDEN (Deputy Leader—ACT) to the Associate Minister of Housing (Public Housing)Question No. 11—Housing (Public Housing)11. BROOKE VAN VELDEN (Deputy Leader—ACT) to the Associate Minister of Housing (Public Housing): Does she stand by all her Government's statements and actions related to the rental market and does she believe renters are better off now compared to 2017?Hon Dr MEGAN WOODS (Minister of Housing) (remote) on behalf of the Associate Minister of Housing (Public Housing): On behalf of the Associate Minister of Housing in answer to the first part yes in the context in which they were made. In answer to the second part of the question we know that the rental market is under pressure right now and that some people are doing it tough but there are a number of ways in which renters are better off since 2017. Firstly the Government has introduced measures to improve household incomes including increasing Working for Families tax credits and raising both the minimum wage and benefit rates; indexing benefits annually to increases in wages; and increasing the accommodation supplement from 1 April 2018. Secondly the Government has taken steps to improve life for renters and this includes implementing the healthy homes standard limiting rent increases to one per year prohibiting landlords from seeking rental bids banning letting fees improving security of tenure by abolishing no-cause terminations—and these are in addition to the measures the Government is taking to actually address the underlying causes of the housing crisis previous Governments shied away from. We know that the rental market is under pressure due to long-run under-investment in both public and affordable housing by previous Governments and that's why we are working to bring on new housing supply which is the best way to get rents under control. This is evidenced by the slowing rents increases in Auckland where there has been a higher concentration of new supply to see that our strategy is starting to take effect.Brooke van Velden: What impact if any does the Minister believe limiting interest deductibility will have upon tenants and their cost of living when the average landlord's tax bill is expected to go up $4000?Hon Dr MEGAN WOODS: The first point I'd like to make is that there is no evidence to show that any of the rules around interest deductibility have in any way driven rents increases. And I think we can just look at history to see that. So if we take the period from October 2017 to December 2021 we saw that rents rose 16.4 percent. I'd like to compare that from the period August 2013 to October 2017 under a National-ACT Government where we also saw a rent increase of 16.4 percent. So I caution the member with conflating correlation and causation.Brooke van Velden: Does the Minister believe that continuing with interest deductibility limitations which Inland Revenue stated in September last year would put upward pressure on rents" can be justified now when inflation is at its highest level in 30 years?Hon Dr MEGAN WOODS: On behalf of the Minister I point the member to my previous answer—that there is simply no evidence that that is having upward pressure on rents given that you can compare a period where there wasn't such a regulation in place where there was the exact same increase in rental prices in that period. We certainly are not going to take away measures that are about making it easier for first-home buyers; that has been an absolute priority for our Government and one that we are committed to. I also point the member to the fact that actually what we have said to investors is "Please come and help us solve the housing crisis" by the fact that we have exempted new builds from this regime. What we want to see is more houses because that is the quickest way to contain rental increases.Brooke van Velden: Point of order Mr Speaker. I don't believe the Minister actually addressed the question because it was about the future going forward and continuing with interest deductibility and inflation going forwards.SPEAKER: I think she did address the question. Further supplementary.Brooke van Velden: Does the Minister agree that there is a shortage of rental accommodation and if so is she not concerned that Inland Revenue's advice stated that interest deductibility limitations may "Reduce the supply of new housing developments in the longer term" which would make it harder for tenants and push up rents?Hon Dr MEGAN WOODS: On behalf of the Minister what I do agree with is actually that we have had an undersupply of housing in New Zealand and that is why our Government has had a comprehensive suite of policies to address this very long-run problem. We can point to markets where we are seeing increased supply of housing coming on stream seeing lower rates of rental increase. So if we look at January of this year January 2022 the national Stats rents price increase increased by 0.7 from the previous month; in Auckland it fell by 0.6 from the previous month. What we see across New Zealand is an annual 5.5 percent rent increase but when we look at Auckland on its own it is 3 percent. This is a market where the Government's policies around increasing housing supply are really starting to come to fruition.Brooke van Velden: Can the Minister accept that interest deductibility limitations for rentals will further increase the cost of renting at a time when new leases are over 5 percent higher on average than last year and inflation's at a 30-year high; and if not what does she say to economists and renters who know it will?Hon Dr MEGAN WOODS: On behalf of the Minister I point the member again to the evidence of what we are seeing. We are seeing rent increases which are in line with previous periods in the not too distant past which saw exactly the same rates of rents increases. So if we look at the evidence that is not what we are seeing coming through. But we will continue to monitor what is happening there. I think that we have to make sure that we have a Government that is committed to building houses whether that be rental accommodation whether that be for owner occupation and that also needs to include public housing which this Government is fully committed to.Brooke van Velden: A point of order Mr Speaker. Thank you. I don't have any further supplementaries but I was hoping to seek your guidance on the transfer of questions. This question originally was sent to the Prime Minister for question which was then transferred to the Minister of Housing which was then transferred to the Associate Minister of Housing (Public Housing). Given the Minister of Housing is answering the question I was hoping I could seek your guidance on transferring questions and passing the buck.SPEAKER: Sure sure. The ability to transfer questions is something which is set out very well in Speakers' rulings and I suggest that the member have a look at it: the right of the Government to find the appropriate Minister to answer a question. That often goes to a matter of delegation and which Minister's responsible under the delegations which are tabled in the House. The Government finds a Minister. If that Minister is not available then another Minister can answer on their behalf just as they can in normal times when members are absent from Wellington. So I understand it is a slightly convoluted system but the ability to transfer unless there is an exceptional reason not to is one which is absolutely up to the Government."