12. Question No. 12—Prime MinisterBROOKE VAN VELDEN (Deputy Leader—ACT) to the Prime MinisterQuestion No. 12—Prime Minister12. BROOKE VAN VELDEN (Deputy Leader—ACT) to the Prime Minister: Does she stand by her statement relating to house prices We don't want to see the significant increases; these huge jumps in house price growth"?Rt Hon JACINDA ARDERN (Prime Minister): Yes. The Government is committed to acting on house prices with urgency. Over the next three years we'll build on the progress made last term but of course there is more to be done. We want to target supply by addressing the underlying structural issues like complex planning laws and infrastructure investment act with urgency to tilt the field towards first-home buyers and investment in new housing and boost direct Government building supply across all types of housing from public and transitional housing through to affordable housing.Brooke van Velden: What percentage increase in prices is she happy to oversee as Prime Minister?Rt Hon JACINDA ARDERN: What we do know is that it is considered unaffordable to have someone paying more than 30 percent of their income on the cost of their housing so whether or not they're in a rental or whether or not they're seeking to go into homeownership we want it to both be attainable for a first-home buyer but we also want people who are in our housing market and in a rental as well to make sure that they have a quality standard of living. So obviously at this price rate increase that we're seeing right now it is making affordable housing out of reach for many.Brooke van Velden: What policies has her Government put in place to slow house price increases and have they worked?Rt Hon JACINDA ARDERN: We've always been very open about this being both a demand and supply issue. So in the last term of course we've made moves around closing tax loopholes. We cracked down on foreign buyers in the market. We worked to increase supply through mechanisms to support residential private development. We've built our own homes through public housing provision and we've extended on that as well. We've also moved into the space of progressive homeownership to support those who may not have the ability to overcome that initial deposit gap but do have a weekly income that can go towards a mortgage. Our view though and the reason we've sought additional advice is we've increasingly seen that those who own multiple properties are taking up the largest portion of those homebuyers at the moment. The Reserve Bank acknowledged that we're seeing highly leveraged speculators in the market at an increasing rate. We've asked for advice from Treasury on what more we can do on the demand side.Brooke van Velden: Given last year's increase in the median house price was $121000 was the intention of the Government to increase house prices?Rt Hon JACINDA ARDERN: No but nor was it the intention I'm sure of Germany to see what I believe is an 11 percent increase. The UK—some of the highest prices in nominal terms that they've seen. Around the world we are seeing during this COVID environment significant increases in house prices but in New Zealand we've seen that even further in our own jurisdiction. So despite there being advice from economists prior to the recent increases that the housing market could drop by as much as 10 percent we've seen the opposite and we're responding to that.Hon Judith Collins: Does she stand by her statement "Under my leadership we will no longer campaign for or implement a capital gains tax—not because I don't believe in it but because I don't believe New Zealand does."?Rt Hon JACINDA ARDERN: I stand by that statement.Hon Judith Collins: Does she agree with Brad Olsen from Infometrics who said extending the brightline test would be a "capital gains tax by stealth"; and if not why not?Rt Hon JACINDA ARDERN: The irony of being asked that question by the very member who was in Government at the time that the brightline test was introduced—and pushed back very hard on any suggestion that it was a capital gains tax. [Interruption]SPEAKER: Order! Order! Both sides please.Brooke van Velden: Does she accept that last year's $121000 increase in the median house price transferred more wealth from people who work to people who own than any other event in her lifetime?Rt Hon JACINDA ARDERN: Obviously the emphasis we are putting on housing—and as I've said many times the fact that increasingly if you have a parent who can support you into a home or if you inherit you are more likely to be able to own a home in this country than you otherwise might. No one wants to see that kind of inequality. I'm very pleased to see the member asking questions that demonstrate you share that concern. Now I would invite you to support some of the initiatives on both the demand and supply side that will make a difference.Brooke van Velden: Does she accept her Government is overseeing one of the largest transfers of wealth in her lifetime?Rt Hon JACINDA ARDERN: I accept that this is not a problem that emerged in the last three years but regardless of how we got here—[Interruption]SPEAKER: Order!Rt Hon JACINDA ARDERN: Regardless of how we got here this whole House has a duty of care to do something about it.Brooke van Velden: By what year does she expect the Government's yet-to-be-drafted reforms to the Resource Management Act (RMA) will have an effect on the housing market?Rt Hon JACINDA ARDERN: The member has previously already laid out the time line for that. However we've also said that that in and of itself is not going to be the answer to everything in our complex planning arrangements in New Zealand right now. We have already expedited significant projects through a shortened RMA process which I would ask for the member's support of because that is one way we can get projects in this period moving. We also have the national policy statement which puts an obligation on councils to free up development capacity within their council jurisdiction and ensure that they are catering for the population growth they have in their individual areas."