Twyford Phil: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Oral Questions — Questions to Ministers[Sitting date: 24 May 2016. Volume:714;Page:11109. Text is incorporated into the Bound Volume.]7.PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Housing: Does he stand by his statement when asked about the housing crisis that “the idea that suddenly happened in May 2016 is a figment of some people’s imagination”?Hon Dr NICK SMITH (Minister for Building and Housing): I stand by my full statement which was preceded by this: “I have been a member of Parliament for 26 years dealing with constituency cases every single year involving families in desperate situations around housing including people living in caravans and people living in garages as well as cars. This is not new.”Phil Twyford: What is the Government’s position on the housing crisis: Paula Bennett admits there is a crisis John Key says “crisis” is an emotive word and he says it is a figment of someone’s imagination?Hon Dr NICK SMITH: Every one of those claims by the member were typical half-quotes. There is no question that New Zealand is doing well. Our population has grown by 70000 over the last year and particularly our housing issues have become a real challenge in Auckland. I would also have to say that in Christchurch where rents have dropped by 5 percent the Government’s measures to address the housing shortages over the earthquakes has seen a drop in the number of people facing acute housing need.Phil Twyford: When he accused the media this morning of inventing promises was he denying that in last year’s Budget he pledged 500 hectares of Crown land for housing but has delivered only 13 hectares or was it just a figment of the media’s imagination?Hon Dr NICK SMITH: I challenge the member to go back and read the press release from last year’s Budget in which $52 million was committed to the Crown land programme. All of that money has been spent on purchasing land and that land is going to be providing houses—940 houses for Aucklanders—which I assume members opposite would welcome.Dr Parmjeet Parmar: Has the Minister seen today’s housing affordability data from interest.co.nz and what does it say about homeownership costs as compared with a year ago and when National came into office?Hon Dr NICK SMITH: This independent index of affordability was previously named the Roost index and it measures the proportion of a single person on the median wage to serve an 80 percent mortgage on a median-priced house. The index today stands at 58 percent nationally; it has improved over the last year from 62 percent and it is about 20 percent better than what it was in 2008. The index in Auckland is currently 93 percent down from 96 percent at the same time last year and 101 percent of where it was at its very worst under the last Labour Government. This index shows actually that housing affordability both nationally and in Auckland has improved over the last year and is significantly better than at the time when Labour was in Government.Phil Twyford: When he promised in his 2014 Budget initiative that he would knock $3500 off the cost of a new home was that a figment of our imagination given that plasterboard costs alone have gone up by more than the total saving that he promised?Hon Dr NICK SMITH: I absolutely stand by the initiative taken in Budget 2014 to take tariffs off building materials. The advice I have had from the ministry is that the reduction in those tariffs is within 10 percent of the estimates that I gave at that time. I totally dispute the member’s claim that the cost of plasterboard has gone up by 50 percent.Phil Twyford: Is it not actually the Minister who has the overactive imagination given that he dreams that houses can magically appear on cemeteries and exploding substations?Hon Dr NICK SMITH: I would focus on the facts. The facts are that when Labour left Government only 10 houses per working day were being built. The latest figures show that in fact 40 houses per working day are being built and I suggest that that is where the answer lies.