Scott Alastair: Taxation (KiwiSaver HomeStart and Remedial Matters) Bill — Third ReadingText is incorporated into the Bound VolumeScott Alastair: Taxation (KiwiSaver HomeStart and Remedial Matters) Bill — Third Reading[Sitting date: 26 March 2015. Volume:704;Page:2682. Text is incorporated into the Bound Volume.]ALASTAIR SCOTT (National—Wairarapa): Thank you for the opportunity to speak on this amendment bill. As I have said before this is part of a multi-pronged approach to support first-home buyers into their homes. Currently first-home buyers are eligible for a grant of $3000 after 3 years $4000 after 4 years and $5000 after 5 years. The HomeStart grant has doubled that amount to $6000 after 3 years $8000 after 4 years and $10000 after 5 years. This amendment gives access for those first-home buyers to an additional $521 per year for each year that they have participated in the KiwiSaver scheme.There is no silver bullet to solve giving access in order to getthose first-home buyers in. Part of it is the low interest rate environment that we have part of it is the growing economy that we have and part of it is the real wage growth that we have in this economy. This amendment affects the demand side. We are talking about the supply and the demand side and this affects the demand side. It does increase and support the demand side which relates to only the first-home buyers because they are the people whom we are wanting to support at this point in the cycle.The people on the other side have been talking about the core issue—the core issue being the supply—but they have totally disregarded the special housing areas that are being opened up. They have totally disregarded the fact that there is a housing boom on right now across the country. They have totally disregarded 23000 new consents in the last 12 months. They have totally disregarded them. If they choose to look around as they drive through various electorates like Botany Hunua and Waimakariri there is a lot of houses and a lot of development. You only need to jump into a car drive around and look for yourselves. Open your eyes—open your eyes.So I would like to also mention the town of Carterton. Just yesterday it was reported in the New Zealand Herald that Carterton is the North Island’s fastest-growing town—the North Island’s fastest-growing town.Hon Member: Is that right? Carterton?ALASTAIR SCOTT: Carterton. It has had a 16 percent increase in population in the last 6 years; an increase of 2.3 percent in the last 12 months. It is predicted that Carterton will run out of zoned land in about 15 years. That means that the council is thinking ahead. It is thinking about the infrastructure that is going to be required for the increased population. It is thinking about rezoning more land for more houses and that is a good thing. That is a good thing. The reason it is growing so fast is that there is a good connection to Wellington City. The key point here is that the average home there is a very affordable $270106. That is affordable. That is very affordable. It is well under the cap that this piece of legislation relates to for that town which is $350000. So things are working. Things are working as they should. People are attracted to growing towns growing economies and regional economies close to major cities where affordable housing is available.The other option of course is to have central planning—just build 100000 houses. What a great idea that is—not! Imagine that: all these houses planned and designed by the Labour Party planned and designed and built by the Labour Party. Imagine the slogan: “Open home Saturday afternoon 2 till 4 o’clock. Homes specially designed for you by the Labour Party”. How many people would turn up? How many people would turn up? None. None. The idea that you can go out there and build 100000 homes without affecting the market without affecting the supply—I mean where are you really going to find the land to build 100000 homes and who are you really going to buy it off? Who are you planning to buy it from? No answer. There is no answer to that question from that side. They have no idea where they are going to find the land. I do not know where they will find it. It is a ridiculous idea that is impractical and is only going to—actually it is quite sanctimonious is it not that these guys think they know best for the people of New Zealand. They know what is best for first-home buyers. They think they can plan a future a home for a first-home buyer by putting them where? Well Labour will decide. It is not for the individual to decide. You see that is the difference: we think that individuals the people of New Zealand have the right and the ability to decide for themselves where and when they would like to live whereas the other side wants to plan for the people of New Zealand. They want to decide where those people can choose to live. That is the difference between this side and the other side.The other side also suggests a capital gains tax being some sort of solution when it is really just a problem. It is only going to accentuate what is not yet a bubble in Auckland by the way. The Governor of the Reserve Bank has not described it as a bubble. There is not the indebtedness—that the Labour Party would like to think there is—that is the definition of a bubble. But I tell you what: you put a capital gains tax in as suggested by that party and the free capital that is available the capital that we need to invest in the regions in the real economy and into real jobs will be attracted to the Auckland housing market. That is what the capital gains tax will do. It was mentioned yesterday; it is known as the “mansion effect”. You will get as much money together as you possibly can to buy the largest the biggest the flashest house because of course the capital gain associated with your family home will be exemptunder that party’s policy. I mean why would you want to invest in something that is in the real economy for which you potentially have to be taxed by that party when you can simply go and buy your own family home and be exempt?The other idea from the Opposition from the Green Party today also was forgetting where the money comes from. The Green Party thinks it grows on trees.As you would expect it is not the solution.Hon Clayton Cosgrove: Talk about your own bill. You’re proud of your own bill—talk about it.ALASTAIR SCOTT: I am trying to illustrate that—Hon Clayton Cosgrove: You’re not trying very hard.ALASTAIR SCOTT: I am doing a very good job actually at illustrating how our multi-pronged approach is effective. It is working and the alternatives that you are trying to constructively put which are failing are just nonsense because money does not grow on trees. If you are going to centrally plan and have the Government build houses or invest in houses you are forgetting the taxpayer who is apparently going to fund or subsidise the building programme proposed by that party. I mean my voters in my electorate in the Wairarapa are not interested in subsidising a building programme proposed by the Greens to build more houses in Auckland. That just does not work. You have got to let the market do what it is allowed to do. You have to support the infrastructure and the process that allows people to make their own decisions on where and when and how they want to live. Thank you.