8. Building and Construction Industry—Reports and Building ConsentsANDREW BAYLY (National—Hunua) to the Minister for Building and ConstructionBuilding and Construction Industry—Reports and Building Consents8. ANDREW BAYLY (National—Hunua) to the Minister for Building and Construction: How do the latest reports on the level of building activity in Auckland and nationwide for the month quarter and year compare with 2016?Hon Dr NICK SMITH (Minister for Building and Construction): Building activity is booming with the latest March figures showing new records in both residential and commercial activity in Auckland as well as nationwide. In March 2017 20 percent more homes were consented than in March 2016 both in Auckland and nationally. The quarterly and annual figures also showed strong growth. There were 30626 new homes consented in the last year which is the highest in 12 years. That is up 2837 on the previous year that year was up 2700 on the previous year and that year was up 2600 on the year before that. This is the sixth straight year of strong growth in home construction—the longest and strongest ever. Andrew Bayly: What do the latest reports have to say about the level of investment in building activity?Hon Dr NICK SMITH: The level of investment in March at $2 billion was the first time ever that $2 billion had been scored in any month since records began and that includes in both real and inflation-adjusted terms. The level of investment for the year had a record of $19.5 billion made up of $12.7 billion in residential work and $6.8 billion in commercial and infrastructure work. Never has New Zealand had the combination of record investment in residential commercial and infrastructure work all at the same time. David Seymour: Are not the real facts that the recent 8-year rise in output came off the back of a 40-year low in home consenting that the rate of home building per capita has halved since the 1970s and that high prices are not a sign of greater productivity?Hon Dr NICK SMITH: The member is absolutely right that the end of the 2008 and the first month of 2009 was the lowest level of new home construction since records began and that shows the mess that was left at the time Labour left Government. In terms of the scale of build the level of investment right now is the highest ever in real terms and I would caution the member against the last peak in 2004 which was only residential activity—very little activity in commercial and infrastructure work. Furthermore I would remind the member that if the comparison is 2004 that was the worst year of leaky home construction and this Government is determined to get quality as well as quantity. David Seymour: Would the Minister's answer have been different if the point of comparison was not 2004 but actually 1974?Hon Dr NICK SMITH: I would urge the member to look at the history in 1974 when the Government of the day resulted in a huge economic dislocation that actually contributed to great hardship in New Zealand in the late 1970s and 1980s. This Government does not want a repeat of the economic circumstances of the mid-1970s which were a disaster for this country. Andrew Bayly: What do the latest reports say about where this building activity is occurring?Hon Dr NICK SMITH: The latest reports show that strong building activity is not just across residential commercial and infrastructure but also incredibly spread across New Zealand. So if we take commercial building activity in Auckland over the last year it is up 20 percent in Gisborne it is up 35 percent in the West Coast it is up 100 percent in Otago it is up 60 percent and in my home community of Nelson it is up 200 percent. This just reinforces that commercial building activity across New Zealand reflects the high level of confidence that there is in the New Zealand economy.