4. Question No. 4—Housing and Urban DevelopmentHon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban DevelopmentQuestion No. 4—Housing and Urban Development4. Hon JUDITH COLLINS (National—Papakura) to the Minister of Housing and Urban Development: How many of the KiwiBuild houses offered for sale in Canterbury in February have sold to eligible KiwiBuild buyers and how many has the Government had to buy as a result of the underwrite contract?Hon PHIL TWYFORD (Minister of Housing and Urban Development): I'm advised that there have been no sales of the seven homes on the market in Canterbury so far. Three of those Canterbury homes have been bought by the Government and that's in the context of a contract with Mike Greer Homes that is delivering 104 affordable homes for first-home buyers.Hon Judith Collins: Why did the Minister underwrite already built and marketed houses after officials had advised him that there was an oversupply of housing in Canterbury?Hon PHIL TWYFORD: I'm advised that none of those houses were built at the time I authorised the ministry to begin negotiations with Mike Greer.Hon Judith Collins: Then did the Minister not read his briefing to the incoming Minister that told him that there was an oversupply of houses in Canterbury?Hon PHIL TWYFORD: That's not the question that the member asked just before.SPEAKER: Order! The Minister was just asked a very straight question. He will answer it.Hon PHIL TWYFORD: Of course I read the briefing.Hon Judith Collins: What tests were done before the underwrite was signed to determine if sufficient demand existed in Canterbury?Hon PHIL TWYFORD: That is a matter for the Ministry of Housing and Urban Development who are responsible for doing the demand analysis and negotiating the contracts with KiwiBuild suppliers. But I will say this: Canterbury is our second-biggest urban area in the country. It has one of the fastest growth trajectories and while housing there is currently relatively affordable compared to other main centres it is rapidly becoming less affordable because of the high rates of growth. Our Government doesn't want to see Canterbury go backwards like so many other urban housing markets under that Government's rule over the last nine years.SPEAKER: Order! The member will ask the question again. Hon Judith Collins: Right. I'm just trying to work out which one it was Mr Speaker. What tests were done before the underwrite was signed to determine if sufficient demand existed in Canterbury? Hon PHIL TWYFORD: The tests that are done routinely by the Ministry of Housing and Urban Development officials in the process of assessing and then negotiating contracts with KiwBuild suppliers include a consideration of both demand assessment and the additionality that one of these contracts brings. Hon Judith Collins: If the Minister read the briefing to the incoming Minister as he's told us today then why did he not point this out when he signed the briefing document that enabled KiwiBuild to sign the contracts for these new houses in Canterbury? Hon PHIL TWYFORD: As I said to the member I did read the briefing but can the member clarify her question—point what out? SPEAKER: This is without penalty. Hon Judith Collins: Thank you Mr Speaker. If the Minister read the briefing to the incoming Minister which points out that there is an oversupply of housing in Canterbury then why did he not point that issue out to his officials when he signed the briefing that enabled them to sign the contract for these new houses in Canterbury? Hon PHIL TWYFORD: I've already explained to the member that Canterbury is one of our fastest-growing urban areas. It has the second-biggest city in New Zealand—Christchurch—and housing there is rapidly becoming less affordable. Our Government is not prepared to sit around on our hands like that Government did and allow those regional housing markets to rapidly deteriorate into unaffordability. Rt Hon Winston Peters: Could I ask the Minister as to whether or not he is aware of the number of tens and tens of thousands of homes around New Zealand but particularly in Auckland that are on the market for six to nine and sometimes 12 months waiting for a buyer and does that mean that there's no demand for that house? Hon PHIL TWYFORD: I thank the member for his question and it's true that houses routinely take a number of weeks even months to sell in New Zealand. That's nothing unusual. Hon Judith Collins: With his ministry's own figures showing that there is a deficit of 44000 houses in Auckland and a surplus of houses in Canterbury why did he sign up for even more houses in Canterbury when he can't sell the seven he's got now? Hon PHIL TWYFORD: Well I have already answered that question. It's important that actually we pay attention to the housing market in Canterbury and don't allow it to go down the same track that so many other regional housing markets are. But what makes this Government different to the last one is that we are building public housing transitional housing and affordable housing in Auckland in Tauranga in Hamilton in Wellington in Nelson—all the markets of the country that are suffering from the effects of a housing crisis that that party allowed to get out of control for nearly a decade.