Twyford Phil: Oral Questions — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeTwyford Phil: Oral Questions — Questions to Ministers Questions to Members[Sitting date: 22 July 2015. Volume:707;Page:5194. Text is incorporated into the Bound Volume.]9.PHIL TWYFORD (Labour—Te Atatū) to the Minister of Finance: Does he stand by his statement about whether inequality was a problem in the Auckland housing market “We’ve been concerned about that for some time that there’s part of Auckland where there’s been really no new supply of lower value houses that low and middle-income families can afford”?Hon BILL ENGLISH (Minister of Finance): Yes and it is time that the member agreed with this. As I have said for some time council planning rules increase inequality because of land use rules that limit heights prevent subdivisions increase land costs and impose delays on the provision of new housing. Of course the lower the value of that housing the more impact it has. As the Productivity Commission recently pointed out it is affordable housing that is most affected by these rules. That is why the Government is working with the councils that are the deciders and regulators in respect of housing supply to cut red tape free up land and infrastructure constraints and get more houses built.Phil Twyford: What advice has he had on whether inequality will be increased or decreased by high levels of property speculation reducing the opportunity for young New Zealanders to get into their first home?Hon BILL ENGLISH: High levels of property speculation are a very obvious symptom of constrained supply. There are not high levels of property speculation in Upper Hutt or Invercargill because there is not much evidence of constrained supply relative to demand. The best response to high levels of speculation if that is what is occurring is to expand supply as quickly as possible. In that respect the member’s cooperation in persuading the Auckland Council to act decisively on this matter would be appreciated but actually the Labour Party does not really want to help out.Phil Twyford: Why should people have any confidence in his main housing supply initiative the special housing areas when only 5 percent to 10 percent of the houses built are affordable—at current prices that means $560000—and fewer than 300 houses have been built in those special housing areas in nearly 2 years?Hon BILL ENGLISH: It is possible that the member does not have all the facts but in any case the special housing areas were a response to the fact that the core Auckland planning process simply could not deliver any new supply of any scale because it was designed to stop new supply—with the support of that member and the councillors from his party on that council who have spent the last 15 years making sure Auckland did not grow. That is why we had to have special housing areas. They are not perfect but they are a lot better than what was there.Phil Twyford: What are the advantages to New Zealanders if any of allowing non-resident foreigners to trade our houses for capital gain?Hon BILL ENGLISH: I do not know why the member is so scared of repeating his definition of non-resident traders in houses. Last week he was very clear who they were. But of course foreign investors make some contribution because if they invest in housing that expands supply that is good and in fact when the price is pushed higher it encourages more development and more supply. However we are getting on with building houses; we are not sitting there going through the phone book trying to decide which migrants should remain homeless.Phil Twyford: Why is his Government willing to implement anti - money-laundering rules at the request of the President of China but unwilling to restrict non-resident foreign buyers as the majority of New Zealanders want?Hon BILL ENGLISH: The anti - money-laundering rules are not being made at the request of the President of China. In fact it has been a global effort to slow down the flows of dirty and corrupt money around the world and the anti - money-laundering rules were put in place some years ago—Hon Gerry Brownlee: By Labour.Hon BILL ENGLISH: —in fact probably by the previous Government. We are simply requiring any foreign buyer to open a bank account so that they have to go through those thorough processes of identification. That may stop some foreigners buying houses in New Zealand.