1. Housing—Affordability and Minister's PerformanceANDREW LITTLE (Leader of the Opposition) to the Prime MinisterTUESDAY 14 MARCH 2017Mr Speaker took the Chair at 2 p.m.Prayers.ORAL QUESTIONSQUESTIONS TO MINISTERSHousing—Affordability and Minister's Performance1. ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement that Nick Smith has dealt with some of the most complex problems of resource law and housing more successfully than any other politician here could have"; if so in what ways if any does he think the housing situation for New Zealanders has improved under Hon Nick Smith?Hon PAULA BENNETT (Acting Prime Minister): Yes because the Government has a comprehensive programme to increase housing supply and it is working.Andrew Little: Have housing costs as a share of family incomes risen or fallen under National and Nick Smith?Hon PAULA BENNETT: It depends on how you measure it.Andrew Little: I seek leave to table the household expenditure survey report showing the share of household incomes spent on housing is at the highest level since the survey began in 2007.Mr SPEAKER: On the basis of the way the question was answered I am going to put the leave. Leave is sought to table that particular document. Is there any objection? There is none. It can be tabled.Document by leave laid on the Table of the House.Andrew Little: When his Government's own housing expenditure survey shows increased housing costs were 94 percent of households' income increase leaving them only $2 a week for other costs does he now accept that housing is eating up what small pay increases some families are getting?Hon PAULA BENNETT: There can be no doubt that we have seen—particularly in the Auckland area but in other areas as well—housing prices increase over recent years although in recent months we have seen an easing of that. The last quarterly report is actually saying that as well: that we are seeing that slowdown. Equally with those who are renting we are seeing a bit of pressure there but that is why we have such a comprehensive programme that is making sure we have got the land supply that is available and that is also making sure those houses are being built.Andrew Little: How does he think it feels for the typical family to work hard but to see their income rise by just $2 a week after paying for skyrocketing housing costs?Hon PAULA BENNETT: Well I will have to check on the $2 a week because the member is not known for getting his numbers right. But at the end of the day what they are seeing is a Government that is working hard for them actually addressing the complex issues around housing supply—that have not been addressed for decades quite frankly—and making sure that we have got an increase. We have seen the biggest number of building consents that we have ever seen—literally up 30000 now and from 10000 just a few short years ago. That is what is going to make a fundamental difference.Andrew Little: How can he pretend everything is fine when research published in the latest Economist a periodical shows New Zealand now has the most unaffordable housing in the developed world?Hon PAULA BENNETT: We have got the largest sustained building boom ever with residential building activity at an all-time high. Building consents are more than double what they were 5 years ago we have got more than 200 special housing areas that have been done we have got the National Policy Statement on Urban Development capacity that is making a difference and we have got the Crown land programme. I saw just the other day that the Hon Amy Adams and the Prime Minister went and opened the Luke Street development where we saw 43 houses built in a matter of weeks actually. We have got more than 20000 people who are getting the HomeStart loans. There is a lot happening in this area and it is making a difference.Rt Hon Winston Peters: From the Government's answers can we assume that with a 40000-plus house shortage and thousands who are living in degradation when it comes to accommodation it is not the case that the quote should be: "Nick Smith has dealt with some of the most complex problems of resource law and housing more successfully than any other National politician could have."?Hon PAULA BENNETT: I repeat that it is around land supply and the number of houses that are being built. We have seen the number of building consents double in just the last 5 years and fundamentally it is about those places being built that people can move into. Andrew Little: What does he say to Kristin of Henderson who wrote to me to say "I will never earn enough as a full-time teacher to afford a mortgage." and is it really fair that a full-time teacher in this country cannot afford her own home?Hon PAULA BENNETT: I would say that that is not true and that with the help from the HomeStart loans and equally just in my own electorate of Hobsonville Point we are seeing houses being built there at $460000—there are some like that and there are opportunities for teachers like her.Andrew Little: Just how far off the tracks are we when the dreams of hard-working Kiwis in well-paying jobs are being crushed by rising house prices and rents and when are we going to see real leadership and a real plan to restore the Kiwi dream of homeownership?Hon PAULA BENNETT: What we are seeing is a comprehensive plan on housing that reaches across increased building consent land supply and urban development and the construction sector at the moment is absolutely booming and about where it is. I find it ironic that a party that labelled people with foreign-sounding names as the problem wants now to bring them over to build people houses.Metiria Turei: Is he proud that New Zealand tops every category of housing unaffordability in The Economist magazine?Hon PAULA BENNETT: I am proud of a lot of things. I am proud that we have doubled the building consents I am proud that we are opening up Crown land for houses and I am proud that we are able to have HomeStart loans which means there is access for those who cannot save for the deposit. Those are the kinds of things I am proud of.Metiria Turei: Will the Government invest more in building affordable homes now that the Aussie banks are putting the squeeze on Kiwi developers proving that the market will not solve this housing crisis by itself?Hon PAULA BENNETT: What we have seen the market do in just the last 2 or 3 months is actually slow down and housing prices get a bit more affordable. So I would expect to see a bit of a correction personally and that will mean what we were also seeing just this morning. I was looking at the houses that are being built in Hobsonville Point—Metiria Turei: On TradeMe?Hon PAULA BENNETT: Well I was actually looking at the TV and there they are building them at $460000. There are more apartments coming up. There are more opportunities.Metiria Turei: Is the Prime Minister worried by reports from the Ministry of Education that hundreds of teachers are being driven out of Auckland by unaffordable rents and house prices; if not why not?Hon PAULA BENNETT: I was speaking to the Minister of Education the other day and she was saying that actually the vacancies in Auckland are relatively low and that they are not seeing the numbers move out that are sometimes reported on without the evidence behind them. But I would say that one needs to be really careful when one starts going there because I do not think a teacher in Auckland is necessarily worth more than a teacher in Tūrangi or in Gore for example.Metiria Turei: Does he agree with the International Monetary Fund (IMF) which also rated New Zealand as the No. 1 least-affordable place to buy a home in the world that a capital gains tax would help to rebalance our economy and to fix the housing market; if he does not agree with the IMF why not?Hon PAULA BENNETT: I probably do not agree with the member's interpretation of what the IMF said but what I would say is that we are doing more for home affordability for all New Zealanders than has been done in decades. That means making sure that more homes are being built. More than 20000 people have accessed HomeStart loans and that means they get that help with the deposit so that they can get into homes. We are also seeing I think a bit of a correction recently.Rt Hon Winston Peters: Given international experts saying this is the highest-price market and the most difficult market in the world to be in now how does she think she is going to get away with statements like: "We have been working on affordability and it's improving."?Hon PAULA BENNETT: Because in a lot of cases the houses are cheaper today than they were 2 months ago."