Turner Judy: Questions for Oral Answer — Questions to Ministers Questions to Members 
Turner Judy: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:633;Page:4546] 
7.  
JUDY TURNER (Deputy Leader—United Future) 
 to the  
Minister of Housing 
: Is he concerned about the significant reduction in New Zealand’s homeownership rates reported in a recent survey? 
Hon STEVE MAHAREY (Minister of Education) 
 on behalf of the 
 Minister of Housing 
: The Government believes that encouraging homeownership is an important way of building strong and stable families and communities. In relation to the recent survey I note that reputable commentators and banks do not accept the findings which are characterised as extreme of the recent Wizard Home Loans survey—in fact one commentator called the assumptions underlying it ludicrous. But the Government does agree that homeownership rates are trending downwards and that is why the Government has been very active in this area. 
Judy Turner 
: Has the Minister considered United Future’s proposal to allow families to capitalise their Working for Families entitlements to purchase a home or increase equity on a home in an effort to encourage an ownership society? 
Hon STEVE MAHAREY 
: The Government is aware of that proposal but we have chosen instead to introduce the KiwiSaver scheme next year which will help families get together a deposit for their first home. 
Phil Heatley 
: Does he think that taxpayers got value for money from the $1.8 million Welcome Home Loans marketing budget pouring in over $1000 of promo money per applicant yet attracting a measly 3 percent of those eligible or would he do better to address crippling land and section prices through Resource Management Act reform? 
Hon STEVE MAHAREY 
: I am informed that it costs less than 1c per dollar borrowed to promote this scheme. Every one of the 1774 families who have used the Welcome Home Loans would prove that it is not a failure. The scheme has helped families who would otherwise be in rental accommodation to buy their own home and if the member has any advice on how to control the housing market through controlling the price of land perhaps he could join the Russian Federation. 
Jill Pettis 
: What steps has the Government taken to help Kiwi families buy their first homes? 
Hon STEVE MAHAREY 
: The Government is working hard to make homeownership attainable for more Kiwi families through the Welcome Home Loans scheme a nationwide homeownership education programme talking and working with councils on how to increase the supply of affordable housing introducing the KiwiSaver scheme and currently developing a new shared equity scheme. I should point out that not one of those policies was followed by the National Government in the 1990s. National did nothing about homeownership. 
Pita Paraone 
: Tena koe. Is he prepared to investigate the feasibility of establishing dedicated homeownership accounts with the provision of tax concessions for those saving for a deposit as a means of bridging the deposit gap which is becoming the biggest barrier to homeownership; if not why not? 
Hon STEVE MAHAREY 
: Two measures that may help with that are coming up. Obviously KiwiSaver is designed to produce a deposit to close that gap. Secondly the shared equity scheme is a way of ensuring that the price a person has to pay for a house initially will basically be halved thereby enabling him or her to get into that house and as the equity grows to get a larger share. 
Judy Turner 
: Will the Minister consider a modified rent-to-buy programme for State house tenants that uses a share of capital gains over a rental period as a deposit on the property to assist in first-time homeownership with the overall housing stock to be replenished as proposed by United Future; if not why not? 
Hon STEVE MAHAREY 
: That is an excellent idea that is being implemented in a roughly similar way by the British Government. Such a shared equity scheme is being considered here. Officials are currently developing proposals for a new shared equity scheme that would include State house market rent tenants amongst the prospective homeowners. That is being looked at at the moment. In the United Kingdom shared equity schemes have enabled social housing tenants to buy a share of their house. We in New Zealand have less room for that of course because the National Party sold off 13000 houses. Until we get that kind of stock back it will be difficult to do that here.