Lotu-Iiga Sam: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeLotu-Iiga Sam: Questions for Oral Answer — Questions to Ministers[Sitting date: 14 May 2013. Volume:690;Page:9841. Text is incorporated into the Bound Volume.]7.Peseta SAM LOTU-IIGA (National—Maungakiekie)to the Minister of Housing: How will today’s announcement of a $377 million investment by Housing New Zealand in Project 324&5 and Simply Smart Homes help the Government achieve its social and economic goals?Hon Dr NICK SMITH (Minister of Housing):Project 324&5 involves converting 1000 three-bedroom State houses and making them into four-bedroom homes and converting another 1000 into five-bedroom homes by adding 3000 modular bedrooms. Housing New Zealand has too many three-bedroom houses. Some are overcrowded some are half empty and some have large sections that are underutilised. Simply Smart Homes involves building 500 two-bedroom homes on these underutilised sections in Auckland. These projects will house an extra 4000 people and contribute to our social goals of healthier homes more affordable homes and happier families. The Minister of Finance is pretty happy because it is very good value for money.Peseta Sam Lotu-Iiga: How will these projects contribute to the housing accord that the Government reached with the Auckland Council last Friday?Hon Dr NICK SMITH: The accord we have reached with the Auckland Council is to ramp up investment in housing to increase supply and to do so in a balanced way that includes both greenfield and brownfield development. This $377 million investment by the Government is in infill housing over the next 3 years and will contribute towards those goals of an extra 39000 houses over that period. This is a common-sense and pragmatic Government that is delivering real benefits for families and for the economy.Peseta Sam Lotu-Iiga: How do these initiatives match up with the Government’s broader programme of reform for social housing?Hon Dr NICK SMITH: Housing New Zealand has historically been just too focused on the number of State houses rather than the quality or for that matter whether they are the right size. For instance there was a very deliberate decision by the previous Government to reject the recommendations of the Housing New Zealand board and spend money on maintaining the houses because it said the only thing the public notice is the number. We are focused on quality houses not just the number and making sure that those houses are the right size for the modern and diverse families that exist today.Phil Twyford: Now that the Government has recognised that over-crowding is a problem for 2000 State tenants what is he going to do to fix the situation of hundreds of thousands of New Zealanders living in overcrowded and uninsulated homes and why will he not back a building programme that will deliver high-quality affordable houses instead of just tinkering with the planning regulations?Hon Dr NICK SMITH: This Government has an incredibly proud record of insulating 230000 homes. I ask this question: how many did Labour do during its 9 years? Less than 10 percent of that. The fact is that the previous Government had a shameful record on the quality of both State houses and others. Watch this space. There will be even more action in the Budget that is announced on Thursday.