4. Housing Rental—Cost Compared With Wages and Accommodation SupplementPHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and ConstructionHousing Rental—Cost Compared With Wages and Accommodation Supplement4. PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Construction: Does he agree with the statement of the Prime Minister that a shortage of rentals is a problem of success"?Hon Dr NICK SMITH (Minister for Building and Construction): The member asked the identical question 2 months ago and as I said then I stand by the Prime Minister's full statement. New Zealand is doing well. Kiwis are not leaving in droves as they were and our population is growing strongly. This is putting pressure on the housing market. The good news is the massive growth in home construction now has building activity at record levels and a record pipeline of new homes coming on stream of over 100000 over the next 3 years.Phil Twyford: Does he think it is acceptable that more than 50 percent of those receiving the accommodation supplement spend more than half their income on rent according to his ministry's own analysis?Hon Dr NICK SMITH: I would draw the member's attention to Massey University's housing affordability measures which show in every region of New Zealand houses are more affordable now than when this Government came to office.Phil Twyford: I raise a point of order Mr Speaker. The primary and the supplementary questions were about rents.Mr SPEAKER: Order! No I think it was around 50 percent of the accommodation supplement being spent on rent. That is around affordability and in this case I think the question has been addressed. I invite the member to consider asking further supplementary questions.Phil Twyford: Why does he think the cost of rent has been outstripping the growth in incomes particularly for those on the lowest wages as shown by his ministry's own analysis?Hon Dr NICK SMITH: I would ask the member to look at the record of rent increases under the previous Labour administration because actually rents have not gone up as quickly under this Government. Furthermore I would draw the member's attention to the Family Incomes Package in this year's Budget which put a huge level of support and increased accommodation supplements for those families that are facing increased rents. I note with concern that members opposite voted against those accommodation supplement increases.Phil Twyford: If I am willing to acknowledge that rents went up a lot under the last Labour Government will he admit that rents have gone up even more in relation to incomes under National over the last 9 years and will he explain to renters now what he is doing to rein in out-of-control rent increases?Hon Dr NICK SMITH: I would draw the member's attention to the latest rental data. It shows that in the market of Christchurch we are now in the second straight year of rent declines and the reason that has occurred in Christchurch is that the Government took hold of the planning system released large volumes of land for housing and that is now delivering benefits. The Auckland market is larger but exactly the same approach is proving to work as we see by the growth in home construction.Phil Twyford: Given that in so many rental markets around the country property speculators and the shortage of housing are responsible for driving up rents why will he not tax speculators and back a massive Government-backed house building programme?Hon Dr NICK SMITH: I love the hollow lines from the member that he is going to ban speculation. My simple challenge to him is this: when he goes along to a housing auction how does he determine those who are genuine investors and those who are speculators? You cannot. It is a nonsense and it just reinforces the hollow sound bites from that member. I contrast that with the substantive tax changes planning changes and other changes that are seeing a record-high house build and these issues being addressed."