4. Housing and Urban Development Minister—Statements about TreasuryHon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban DevelopmentHousing and Urban Development Minister—Statements about Treasury4. Hon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban Development: Does he stand by all his reported statements regarding Budget 2018?Hon PHIL TWYFORD (Minister of Housing and Urban Development): Yes—except my description of Treasury officials; I accept the Prime Minister's advice that this went a little too far. But I agree with the Prime Minister and the Minister of Finance that Treasury's forecast is wrong.Hon Judith Collins: If he no longer believes he should have called Treasury kids" who were "fresh out of university and … completely disconnected from reality" then why did he do it?Hon PHIL TWYFORD: I accept the Prime Minister's advice that that choice of words went a little too far.SPEAKER: No no the Minister will answer the question—at least address it.Hon PHIL TWYFORD: Repeat the question.Hon Judith Collins: Essentially why did he call them that?Hon PHIL TWYFORD: Because I was frustrated at forecasts that had been made by Treasury that were blatantly wrong.Hon Judith Collins: Has he received ministerial advice that some of the Treasury analysts are completely disconnected from reality when they have said that there is a "high degree of uncertainty" regarding impact of KiwiBuild policies?Hon PHIL TWYFORD: Look I think everyone should take a turn at being wrong. I got the price points wrong last week; that member is wrong almost every week. It shouldn't surprise anybody that with a policy that's as big and complex as KiwiBuild different Government agencies will end up with different views.Hon Judith Collins: When he told the media last Friday that in relation to KiwiBuild and Budget 2018 "Treasury have made a number of highly questionable assumptions" what are those highly questionable assumptions?Hon PHIL TWYFORD: Well Treasury previously assumed that the $2 billion appropriation would be spent in two halves over the next two years and recycled thereafter. They changed that assumption and they now think that it will happen over three years. That assumption is wrong. The Ministry of Business Innovation and Employment (MBIE) on the other hand estimate that KiwiBuild will generate between $4.8 billion and $11.6 billion in additional residential construction investment over that period. MBIE who are implementing this policy have pointed out that Treasury's assumption excludes the fact that the KiwiBuild capital investment will be recycled repeatedly. They've included those homes that will be paid for on completion or built because of the KiwiBuild underwrite and they've ignored the actual expenditure plan of KiwiBuild.Hon Judith Collins: What does he know as a Minister that means he is better qualified than Treasury analysts to make assumptions as to the economic impact of KiwiBuild in Budget 2018 and on the economy of New Zealand?Hon PHIL TWYFORD: When Government officials give advice it is just that; it's advice and in this case I believe that MBIE's advice is better grounded in the reality of the policy."