Smith NickRICCARTON RACECOURSE DEVELOPMENT ENABLING BILLRICCARTON RACECOURSE BILLThird ReadingsHon Dr NICK SMITH (Minister for Building and Housing): I move That the Riccarton Racecourse Development Enabling Bill and the Riccarton Racecourse Bill be now read a third time. These two bills are part of the Government's post-earthquake contribution to rebuilding the city of Christchurch as well as supporting the Government's broader programme of increasing the supply of housing around New Zealand. Together these two bills will enable some 40 hectares of Riccarton Racecourse land in Christchurch to be developed into more than 600 homes. They are bills that are going to enable $300 million of development and they are bills that are going to enable the Government to require that 180 or at least 30 percent of these homes are in the bracket to complement the Government's KiwiSaver HomeStart scheme. The Government and the Christchurch City Council made a joint commitment to increase the supply of homes in Christchurch. We entered into the Christchurch Housing Accord in April 2004 with the aim of both increasing the immediate and the long-term supply and affordability of homes in Christchurch. In the debate around Auckland housing it is noteworthy that the Government's programme with Christchurch has been successful and the same approach will work with the city of Auckland. I recently attended the opening of the first homes that were completed from part of the accord programme at Awatea and I was hugely impressed with both the quality and the affordability of these houses that are coming on stream and in the context of the broader debate around housing I would bring those initiatives to the House's attention because they do paint the picture of where the solution lies. Back in 2014 the trustees who govern the racecourse reserve approached me seeking to convert part of the very large Riccarton Racecourse into housing. The trustees were seeking opportunities to make better use of the underutilised land at the racecourse to ensure that the rest of the racecourse would be able to continue functioning. These bills break the barrier that the Christchurch Racecourse Reserve Act 1878 and the Reserves Act 1977 were creating for the utilisation of that Riccarton Racecourse land for housing development. This is robust legislation that ensures the land will be developed with a quality residential development. Once the bills receive the Royal assent the board of trustees has a period of 1 year to submit a development plan to me and to receive approval. The Riccarton Racecourse Development Enabling Bill sets out the requirements for the development scheme including meeting that minimum of 180 affordable houses on the developed land and to have the code of compliance certificate for those homes issued within 5 years of that development scheme being approved. Before recommending the development scheme to the Governor-General for approval I am appropriately required to consult with the Minister for Canterbury Earthquake Recovery and the Christchurch City Council. These bills have been carefully crafted to ensure that they respect both the intent and the deed of the Ngāi Tahu settlement in Canterbury with more than 180 homes to be at the affordable price point. These bills will also contribute to the need to replace the affordable homes that were destroyed through the Christchurch earthquakes. I think there is an acknowledgment that the area of Christchurch most affected by the earthquakes in the east tended to provide that city with a greater range of its affordable homes and that there is a need not just for more homes but for more homes than are in that affordable range. The Government has deliberately linked the bill and the development plan with the Government's KiwiSaver HomeStart scheme. This is the most generous support that the Government has provided in a generation for first-home buyers. It enables grants of up to $20000 to be provided for purchasing a home in the Christchurch scenario below $450000 and for the scheme to work we want to both support the homebuyers but also make sure that there are new homes coming on stream within that price range. The legislation ensures that if I am not satisfied that the development scheme will meet those requirements and will not result in the quality residential development within 1 year of the passage of this legislation then the legal basis for converting that racecourse land no longer becomes available. I have to note this bill in the context of the broader debate on housing. I keep hearing from the Opposition that the Government is not doing anything around housing and then every time we bring a bill to the House pragmatic bills like these ones Opposition parties vote for it. This legislation is just further evidence of this Government's pragmatic and comprehensive approach around the challenge that New Zealand has around housing. The public understands that there is not some single silver bullet or that there is an instant solution. It is about taking every opportunity to grow the supply of housing. The housing development at Riccarton is one on four sites in Christchurch—including in Colombo Street in Awatea and in Welles Street—that in total will provide over 1000 additional homes for Christchurch. It sits alongside a very identical programme that we have initiated in Auckland. It sits alongside initiatives like the special housing areas the housing accords the National Policy Statement on Urban Development the HomeStart scheme and the large bill before Parliament to reform the Resource Management Act. I note the GDP data out today showing that the New Zealand construction industry is at an all-time boom with the fastest rate of both residential and commercial construction ever in our history. We have seen since we signed the housing accords with councils like the Christchurch City Council the rate of house build in New Zealand more than doubling from 13000 homes a year. The latest statistics are now showing that over 28000 homes are being built. I would like to conclude by taking this opportunity to thank the trustees of the Riccarton Racecourse Ngāi Tahu Property and Te Rūnanga o Ngāi Tahu and the Christchurch City Council which have all worked hard to ensure the progress of these bills opening the door for this development. The Riccarton Racecourse is an ideal site for new housing. It is a neighbourhood with lovely surroundings and good access to community schools to public transport and to community facilities. The development of these 600 homes that are in this attractive part of Christchurch is an important part of the rebuild plan for that city but also of the wider challenge across New Zealand of ensuring that our housing supply keeps progress with our population growth. I look forward to seeing the first homes built on this site as we bring the development plan together. I commend both bills to the House and move they be read a third time.