1. State and Social Housing—Social Housing Reform Programme and State House SalesMATT DOOCEY (National—Waimakariri) to the Minister of FinanceWEDNESDAY 30 NOVEMBER 2016Mr Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSState and Social Housing—Social Housing Reform Programme and State House Sales1. MATT DOOCEY (National—Waimakariri) to the Minister of Finance: What recent announcements has the Government made regarding its Social Housing Reform Programme?Hon PAULA BENNETT (Associate Minister of Finance) on behalf of the Minister of Finance: Last week the Government announced that Treasury will begin the market sounding phase for a potential transfer of up to 2500 Housing New Zealand properties in Christchurch. The Government's Social Housing Reform Programme is aimed squarely at improving the lives of tenants by transferring properties to registered community housing providers that are better equipped to deal with some very vulnerable people who sometimes have very complex lives. Through this process we are looking at four providers who can demonstrate strong community links and the ability to upscale and improve the quality of the houses our tenants are living in.Matt Doocey: What guarantees of home security can you give to existing Housing New Zealand tenants?Hon PAULA BENNETT: One of the primary objectives of the Social Housing Reform Programme is that tenants' rights will remain the same and the community housing provider will have the same responsibilities as Housing New Zealand has now. Tenants will continue to be housed for the duration of their need. Any successful bidder will enter a 25-year contract with the Ministry of Social Development to provide housing places. These houses cannot be sold and must remain in use as social housing unless the Government agrees otherwise. The Government believes an increased role for community housing providers alongside Housing New Zealand will bring innovation and performance benefits that will mean we can better meet the needs of those vulnerable New Zealanders.Matt Doocey: Does the Government stand by its commitment to achieve fair and reasonable value for taxpayers in social housing transactions?Hon PAULA BENNETT: Yes. Recently the IHC New Zealand - owned Accessible Properties was named as the preferred bidder for a transaction of 1124 properties in Tauranga. The houses that have been offered for sale in Tauranga have been offered with conditions. They must remain as social houses unless the Government agrees otherwise and only community housing providers or consortiums including a community provider can participate in transactions. Although the final sale price may be below capital value the price will reflect the obligations and conditions the new owner will have.Grant Robertson: Is the Minister comfortable that Treasury has spent nearly $10 million on the State housing transfer programme in the last 2 financial years and no actual houses have been transferred?Hon PAULA BENNETT: Yes particularly as it was a new system that had to be set up. We are talking about a more than $21 billion asset in the houses that are with Housing New Zealand alone. I think we will see that the houses in Tauranga are worth over hundreds of millions of dollars and as such spending some to make sure that we are getting the process right—and the interests of the tenants—is the right thing to do.Grant Robertson: Given that $5 million of that $10 million has been spent on consultants does she not think that it would be better for those vulnerable New Zealanders who need housing to spend that money on actually building and acquiring more State houses for New Zealanders rather than having 2600 fewer State houses now than when she came into office?Hon PAULA BENNETT: The member will be pleased to know that the rebuilding programme that is going on just within Housing New Zealand is meaning that there are thousands more new Housing New Zealand houses to come on board in just the next 2 to 3 years. Every single week we are opening new Housing New Zealand homes. This does mean of course that through these sales we can put more capital into that rebuilding programme. It is making a huge difference.Matt Doocey: What reports has she seen about the support for the proposal?Hon PAULA BENNETT: I have seen comments welcoming the transfer. A commentator went on to say that it makes complete sense that such housing should be transferred to a local provider focused on building sustainable communities and ensuring the needs of tenants remain first and foremost". Of course those comments were from the Christchurch mayor and former Labour MP Lianne Dalziel."