3. Housing Affordability and Availability—Government Measures to AddressANDREW LITTLE (Leader of the Opposition) to the Prime MinisterHousing Affordability and Availability—Government Measures to Address3. ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement that he has a comprehensive housing plan" given the continued decline in home ownership and rapid rise in house prices?Rt Hon JOHN KEY (Prime Minister): Yes and here is why. The Government's comprehensive housing plan includes our social housing build our emergency housing programme special housing areas the expanded HomeStart scheme for first-home buyers freeing up surplus Crown land the national policy statement Resource Management Act reform and extra tax measures that we took last year. On Sunday I announced a new $1 billion Housing Infrastructure Fund to support infrastructure needed for new housing in high-growth areas and we are considering independent urban development authorities for areas of high housing need. By any definition this is a very comprehensive housing plan.Andrew Little: When fewer than 500 affordable houses are being built in Auckland this year where in his comprehensive plan is the policy to build the thousands of affordable homes that are so desperately needed?Rt Hon JOHN KEY: The member is incorrect in his assertion.Andrew Little: If his plan is so comprehensive why did Nick Smith's Crown land policy find just 13 of the promised 500 hectares?Rt Hon JOHN KEY: As the member will have seen the Minister for Building and Housing announced more land today. If one looks across Auckland and looks at the level of building activity one will see how significant it is and how quickly it is ramping up.Andrew Little: If his plan is so comprehensive why have only 1000 of the promised 39000 houses been built in the special housing areas? [Interruption]Mr SPEAKER: Order! [Interruption] Order! I just need a little more cooperation from the front bench to my left.Rt Hon JOHN KEY: The member might want to believe that that is happening but once again it is incorrect. If one looks at the level of both building activity and houses that are being completed in Auckland they are significantly greater than the member says.Tim Macindoe: How is the Government's comprehensive housing plan translating—Mr SPEAKER: Order! I want to hear the question. If I hear that sort of level of interjection again I will be warning a member and if it happens again I will be sadly asking that member to leave for the balance of question time. Would Mr Macindoe please start the question again.Tim Macindoe: How is the Government's comprehensive housing plan translating into more houses being built around New Zealand where they are most needed?Rt Hon JOHN KEY: There are many signs that the Government's comprehensive housing plan is delivering more houses. For example we are now in the middle of the biggest housing boom New Zealand has seen. We are on track to build 85000 houses across New Zealand in this term of Parliament alone. The construction industry is the biggest it has ever been. We have around 40000 more people working in the sector than just 2 years ago and there are 42000 apprentices being trained across the country. The Government will press on with its housing plan to build on this good momentum.Andrew Little: If his plan is so comprehensive why did Bill English build only half the State houses he promised?Rt Hon JOHN KEY: Well I think the Minister himself would say that it took Housing New Zealand a little longer—actually for some of the very reasons we have been trying to resolve ourselves—through slow planning processes and the like. But actually the number is increasing to what we had anticipated and those 2000 houses I think that had been promised will be built.Andrew Little: If his plan is so comprehensive why did Paula Bennett have to make up the mythical Ministry of Social Development flying squads?Rt Hon JOHN KEY: The Minister did not. The Minister put together a team of people through her ministries that engaged with a variety of NGOs and I think they have been doing some very good work to help those people.Tim Macindoe: What reports has the Prime Minister seen on trends in homeownership rates in New Zealand and the factors contributing to those trends?Rt Hon JOHN KEY: I have seen the Productivity Commission's very thorough report on housing affordability. It made a number of very valid points. First New Zealand's homeownership rates peaked in the late 1980s and early 1990s when around 75 percent of private dwellings were owned by their occupants. By 2012 homeownership levels had dropped to around 65 percent which was about the average for the group of the OECD countries for which data is available. And third the commission noted that the house prices increased rapidly through the 2000s when the rental market expanded to accommodate households that favoured renting over homeownership. So this is a very long-term trend and it matches what has been happening in other countries.Mr SPEAKER: Order! I want less interjection from both the Hon Dr Nick Smith and the Hon Annette King.Andrew Little: In light of the answer to that last question and if it is correct that there is really nothing to see here and nothing is out of the usual why is it that he is begging the Reserve Bank to just get on with it when it comes to it controlling housing policy?Rt Hon JOHN KEY: Because the Reserve Bank is the one that can control loan-to-value ratios (LVRs). It is certainly giving some strong consideration to increasing LVRs for investors. There is some anecdotal evidence that by musing on these things it might encourage investors to buy now and so if it is going to make a change my preference would be that it does just get on with it.Andrew Little: After years of failed housing policies a Budget that completely ignored housing as an issue last-minute announcements and panicked flip-flops does he not agree that his housing policy is just comprehensive chaos?Rt Hon JOHN KEY: No. If one looks at the level of construction activity in Auckland it has grown in double digits year after year over the last 3 or 4 years. There has been a substantial increase. It is why we have 24000 more people working in the construction sector in Auckland alone and 40000 people across New Zealand. Interestingly enough if one does spend just a little bit of time in Auckland and goes around and has a look at the level of activity and the number of people engaged New Zealanders in Auckland I think can actually see how much work is being undertaken. They would also appreciate that these things do not just happen overnight and the reason why Labour continues to poll at 25 or 26 percent—Mr SPEAKER: Order! [Interruption] Order! The last part will not help the order of this House."