Mahuta NanaiaKĀINGA ORA—HOMES AND COMMUNITIES BILLFirst ReadingHon NANAIA MAHUTA (Associate Minister of Housing and Urban Development (Māori Housing)) on behalf of the Minister of Housing and Urban Development: I move That the Kāinga Ora—Homes and Communities Bill be now read a first time. I nominate the Environment Committee to consider the bill.Kāinga Ora reflects our Government's commitment to take a hands-on approach—SPEAKER: Order! Can I just check with the Minister: I have her giving a much longer introductory point. If that's changed it would have been good to have had notice of it. It involved a reporting date and a select committee arrangement.Hon NANAIA MAHUTA: Just to restate I move that the Kāinga Ora—Homes and Communities Bill be now read a first time. I nominate the Environment Committee to consider the bill.SPEAKER: So I'm now looking at the Leader of the House. The Government has changed its mind?Hon Chris Hipkins: Yes.SPEAKER: Right. Sorry I apologise to the Minister. It's just that when I'm briefed in a particular manner I expect that to occur.Hon NANAIA MAHUTA: Kāinga Ora reflects our Government's commitment to take a hands-on approach to tackling homelessness and unaffordable housing. Kāinga Ora will be our housing delivery arm right across the housing continuum. Kāinga Ora reflects a new approach to housing and urban development. It reflects a number of our commitments. Public and affordable housing are at the heart of our housing agenda. They are places where generations of young families have come to get a start in life and to put down roots in their community. We are strengthening the promise.We believe Government should be an enabler of urban development to partner with the private sector local government and iwi to build vibrant communities rather than crowding out or replacing the private sector. Our message to developers is: we want to help you grow. We understand your constraints. We want to work together on the solution. We want to implement good urban design and develop well-connected communities with great transport connections vibrant town centres community infrastructure and affordable homes. Mana whenua are at the heart of these developments as developers builders housing providers and partners and we want to support them too.Creating an urban development authority (UDA) has been considered in New Zealand for some time. In their final term the Clark Labour-led Government created a sustainable urban development unit prepared Cabinet papers and released a discussion document. Since then the Productivity Commission has published three reports highlighting the need for an urban development authority to address New Zealand's housing supply and urban development issues. In 2017 as the national housing crisis became most acute the previous National Government also released a discussion document on establishing a UDA. This is the first of two bills to establish Kāinga Ora. A second bill will be introduced later this year that will enable Kāinga Ora to undertake specified development projects which are large-scale complex urban developments designed to drive real change and urban renewal.I'll come back to why Cabinet decided to split the bill in two and accelerate the entity legislation but first Kāinga Ora is a new agency to partner with local government iwi and the private sector to build quality State and affordable and market homes and create thriving master-planned communities. Kāinga Ora has two core roles: being a world-class public housing landlord and leading and co-ordinating urban development projects. It will be a powerful delivery entity capable of integrated urban development that provides a mix of public affordable and open-market housing. It will consolidate all three essential centres of development capability: Housing New Zealand (HNZ) and its subsidiary HLC and KiwiBuild. Kāinga Ora will undertake a range of large and small urban development projects throughout the country for some large-scale complex development projects.The second bill will provide for a range of statutory powers that will better enable development. The authority will have a streamlined resource management planning and consent process. It will develop project master plans that will replace local plans. It will be able to build and change infrastructure and this will de-risk developments and enable us to partner with builders and build homes and undertake quality intensification. It will have the ability to levy or charge local residents to fund infrastructure and development activities. It will be able to bring together parcels of land; it can reconfigure reserves create new parks and the important public infrastructure that makes a suburb a community. The authority will be able to build much-needed housing and infrastructure at the scale and pace needed to tackle the housing crisis as well as delivering quality urban developments that will connect homes with jobs open spaces and transport links.By bringing these entities through we are demonstrating our commitment to public housing. Proving this commitment Housing New Zealand's new social objectives to provide decent housing be a fair and compassionate landlord and to help sustain tenancies will be enshrined in the authority's legislation as will an obligation to assist tenants to sustain a tenancy to support tenants to be well-connected to their communities and to help tenants to lead their lives with dignity. Kāinga Ora's overarching objective functions and operating principles will establish a strong social mandate with an overarching focus on promoting the wellbeing of current and future generations. Clauses 13 and 14 set these objectives out.We've split the bill to accelerate the development progress. The reason Cabinet is establishing Kāinga Ora on a quicker time frame is the benefits that come from maximising scale and integration. Consolidating Housing New Zealand HLC and the KiwiBuild unit as soon as possible will enable us to integrate the full Government build programme across our development efforts reducing complexity and improving co-ordination. Builders and developers tell me that we are often talking with three heads. HLC has one set of procurement rules HNZ another and KiwiBuild a third. Some have been known to play these agencies off against another. By working together we can get more out of our procurement programmes. Integration enables us to make it easier for builders to get on and build including by rationalising processes and procurement across Government move to long-term agreements with builders where we contract a large number of homes a year across the full Government build programme giving them certainty and scale to reduce costs invest in offsite manufacture train staff and build faster.Finally this bill also provides for a Government policy statement (GPS) on housing and urban development to promote a housing and urban development system that contributes to the wellbeing of New Zealanders. The GPS will allow the Government to set out its overall direction and priorities for the whole housing and urban development sector and how it expects Kāinga Ora and other agencies to meet them. The GPS will have a long-term outlook. It will be developed in consultation with stakeholders with the first to be issued by 1 October 2020 and then reviewed every three years. This bill will enable Kāinga Ora to begin the vital work of contributing to thriving sustainable and inclusive communities for all New Zealanders. I commend the bill to the House.