4. Question No. 4—Prime MinisterHon SIMON BRIDGES (Leader of the Opposition) to the Prime MinisterQuestion No. 4—Prime Minister4. Hon SIMON BRIDGES (Leader of the Opposition) to the Prime Minister: Does she stand by all of her Government's statements and actions?Rt Hon JACINDA ARDERN (Prime Minister): Yes as I did in question No. 1. Hon Simon Bridges: Did the Government seek any advice on whether there would be demand in Wānaka for two- or three-bedroom homes in the KiwiBuild price caps; if so what did the advice say?Rt Hon JACINDA ARDERN: If the member is familiar with the demand in that region and the house prices in that region he'll understand that yes there is demand there and that work was done.Hon Simon Bridges: If that is so why did a KiwiBuild spokesperson say that Some houses have received no entries and the developer has asked us to extend the ballot"?Rt Hon JACINDA ARDERN: The member will be familiar that with the ballot in Auckland there was significant demand. We found—from my memory—that some of that demand came in quite late in the ballot process. What we've seen in the South as I understand is that applicants have started the application process but haven't always completed it. The decision was made to give that additional time.Hon Simon Bridges: Is she confident the Government will be able to fill the 211 KiwiBuild houses in Wānaka in the South Island over the next two years?Rt Hon JACINDA ARDERN: I'm very clear on where in the country there's exceptional demand and exceptional house prices. The reason that we as a Government decided to step into the market—because it had failed—was because we had areas where business was saying they couldn't get people because housing was unaffordable. We decided to step into those areas and fill that gap. That is what we're doing. We're proud of our agenda and I'm confident as we roll out this programme that people will continue to take up those offers. Hon Simon Bridges: If there's such exceptional demand as she says why have only 20 people entered the ballot so far?Rt Hon JACINDA ARDERN: I already set out some of the reasoning for that. If the member is suggesting for a moment that there is no problem with our housing market that there are available to first-home buyers homes at a price point that is realistic then that is his prerogative but on this side we do not accept that.Hon Simon Bridges: Is the Government subsidising KiwiBuild houses?Rt Hon JACINDA ARDERN: As we have constantly pointed out KiwiBuild is not a subsidy programme; it is a programme using the Government's scale and buying power to deliver what the market has failed to deliver.Hon Simon Bridges: What will happen with KiwiBuild houses that do not sell through the ballot system?Rt Hon JACINDA ARDERN: That is a hypothetical.Hon Simon Bridges: How is a scheme where the Government is guaranteeing to buy houses that do not sell to the market at a price that is by definition above market price not subsidising those houses?Rt Hon JACINDA ARDERN: As we have set out many times before what we have done is accepted that 5 percent—5 percent—is the number of houses in the market currently that are at the first-home buyer level. That is not acceptable given the demand that is out there. We needed someone to enter the market and build first homes for first-home buyers. That is what we have agreed to do."