Shearer David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeShearer David: Questions for Oral Answer — Questions to Ministers[Sitting date: 30 July 2013. Volume:692;Page:12018. Text is incorporated into the Bound Volume.]1.DAVID SHEARER (Leader of the Opposition)to thePrime Minister: Does he stand by all his statements?Rt Hon JOHN KEY (Prime Minister):Yes.David Shearer: Does he stand by his statement that “first home buyers are a priority for the Government”; if so what is he doing to help Kiwis get into their first home?Rt Hon JOHN KEY: Yes; the Government is doing a number of things. Firstly the Government has reached an accord with Auckland which will ensure that 39000 new homes will be built over the next 3 years. The Government is undertaking reform of the Resource Management Act which will allow streamlining of the process. The Government has been working on reforming the building and construction industry. Interestingly enough the Government has managed to keep interest rates low through its fine economic management. If we go back and look at the time when the affordability index reached its highest point—where it is the least affordable—it was funnily enough in 2007 when it reached 107.3 percent. What we will not be doing is dreaming up some sort of policy on the seat of our pants—Mr SPEAKER: Order! The Prime Minister is not responsible for that matter.David Shearer: If first-home buyers are a priority for this Government will he exempt them from the loan-to-value ratios?Rt Hon JOHN KEY: Firstly I think it is important to understand that if loan-to-value ratios are implemented or there are restrictions on them that is a matter for the Reserve Bank and it has the independent authority to do so. But I think it will be interesting to see how it all plays out.David Shearer: Why is he allowing offshore speculators to buy houses ahead of Kiwi families?Rt Hon JOHN KEY: I am not allowing that and I think it is worthy of noting that the rules have not changed last time I looked and will not any time soon. Between1999—December to be precise—and November 2008 I note that the national median sale price rose from $169000 to $340000—[Interruption ]Mr SPEAKER: Order! This is a question that was asked. The member deserves an answer and he cannot possibly hear it with the level of barracking that is coming from my left-hand side.Rt Hon JOHN KEY: So if we look at that price increase it was 100 percent. From the time that the National Government has been in office it has risen—Mr SPEAKER: Order! I have a point of order from Mr Shearer.David Shearer: I raise a point of order Mr Speaker. That answer is nowhere near the question that I asked.Mr SPEAKER: On this occasion it is and I invite the member to reconsider his question—why is the Prime Minister allowing offshore speculators to dominate the housing market etc. It was a very political question that was asked and the Prime Minister is giving a political response to it.David Shearer: Is he aware that property companies are advertising Kiwi homes offshore with sales pitches like: “Why New Zealand property? No capital gains tax no transfer duty few barriers to purchasing so what are you waiting for?”; if so why will not he put Kiwi home buyers ahead of offshore speculators?Rt Hon JOHN KEY: Firstly as I have said actually the rules have not changed. They are the very same rules that were in place when Labour was in office. But interestingly enough I noted from downtown Seoul the policy suggestions of Mr Shearer. If that is the case that offshore buyers are in fact the people who are driving the process interestingly enough the architect of that policy we all know is not the Labour Party caucus but Tony Alexander of the BNZ and this is what Tony Alexander says about the very problem that the member is saying is a problem: “Here is a growing visceral perception that Chinese buyers are snapping up NZ houses leaving them empty pushing up prices and making homeownership more difficult for Kiwis. The data”—Mr SPEAKER: Order! Point of order the Hon Annette King.Hon Annette King: I raise a point of order Mr Speaker. I have two points. First of all answers are supposed to be to the point and succinct and secondly when you get to your feet the Prime Minister is supposed to stop speaking. Twice he has carried on speaking and I am waiting for you to rule on that.Mr SPEAKER: Order! The Prime Minister was giving an answer. He was addressing it looking away from me and I do not think for any minute he deliberately carried on. I called him to order and he sat down as I would expect any member to do when a point of order is called. I invite the Labour members to consider the tone of the question that was asked. It was a political question that was asked and it is likely to get a political answer back.Rt Hon Winston Peters: I raise a point of order Mr Speaker. Since when did the New Zealand Parliament begin a convention that politicians cannot ask political questions? I mean it is so nonsensical as to make this House look ridiculous. I would rather that you did that by yourself not us.Mr SPEAKER: Order! I can only assume the honourable member misheard me. I was saying that it was indeed a political question that was asked and when asking a political question it is likely to get a political response.Louise Upston: Has he seen any recent reports with alternative suggestions on housing?Rt Hon JOHN KEY: Yes I have. I have seen the suggestion by the Labour Party that people offshore should not be able to buy houses even if they are coming to New Zealand to work. But interestingly enough the architect of that policy Mr TonyAlexander said this: “Because I believe foreigners are not the driving force behind prices rising strongly I do not believe such rules would have much impact on prices—especially as no-one is able to provide data showing the Asian buyers they see at auctions are foreigners rather than Kiwis.”ShamubeelEaqub—he went into slightly more colourful language—said that Labour Party policy was a “solution in search of a problem”.Mr SPEAKER: Order! The Prime Minister is not responsible for Labour Party policy.David Shearer: If he stands by his statement that “The big thing that will get us through is supply.” and more homes need to be built then how many new affordable—affordable—homes will be built by this Government?Rt Hon JOHN KEY: The Government does not build those houses with the exception of when they are built for Housing New Zealand. But I have no doubt that as part of the 39000 homes a considerable number will be affordable. But this is what is interesting. The Labour Party’s old policy was theoretically to build 300000 homes and now—Mr SPEAKER: Order!David Shearer: I raise a point of order Mr Speaker. That was a well and truly answered question.Mr SPEAKER: On this occasion I agree with David Shearer.