Hague Kevin: Oral Questions — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeHague Kevin: Oral Questions — Questions to Ministers Questions to Members[Sitting date: 05 May 2015. Volume:705;Page:3139. Text is incorporated into the Bound Volume.]8.KEVIN HAGUE (Green) to the Minister of Finance: Does he stand by all his statements?Hon BILL ENGLISH (Minister of Finance): Yes in the context in which they were made.Kevin Hague: As the Minister is happy to have the problems of success as he told the TheNation television programme on the weekend could he tell the House whether it is a mark of this Government’s success that the homeownership rate is at its lowest since 1951 and whether he is happy about that?Hon BILL ENGLISH: I know the Greens do not like any kind of economic success; they regard it as an attack on the environment. But we think that on balance it benefits most people so yes in answer to your first question we are happy to have the problems of success. Secondly with regard to homeownership rates the member may not be aware of the HomeStart programme launched on 1 April—I hope he is advising his constituents about it—which will assist particularly young New Zealanders into homeownership. The steady decline in homeownership since the late 1950s tells us I think a bit more about demographic change—the change in the nature of households and so on; particularly say for instance in the fast growth in the sole-parent household—and is probably a stronger explanation than some others that the member has in mind.Kevin Hague: Is it another mark of this Government’s success that the median house price in Auckland has now reached $753500 with an average sale of more than $800000 and is he happy about that?Hon BILL ENGLISH: No I am not happy about it and I am particularly unhappy with the kind of planning approach that the Greens advocate which is part of the cause of the rapid escalation in house prices. The Greens have advocated anti-growth and anti-densification policies for years. They have been far too influential and that is cutting low and middle income Aucklanders out of the possibility of decent housing or of owning their own house. I hope that the Greens will change their views and help us to change the Auckland Council’s views so that we can allow Auckland City to grow and to have affordable housing.Kevin Hague: Is it a problem of this Government’s success that its housing accord partner the Auckland Council has put the building of 2000 to 3000 supposedly fast-tracked homes on hold around Huapai because the Government refuses to properly fund much-needed transport links to this area?Hon BILL ENGLISH: I am sure that there will be ongoing discussion with the Auckland Council but my understanding is that quite independent of the Government it appears at least to have reduced its own infrastructure budget at a time when the city is under pressure to grow. That is a wee bit hard to understand and I am sure we can have further productive discussions with the city but it should be clear—as the Greens should be clear—that the long-term answer to affordable housing in Auckland is more houses on the ground faster and the Government will relentlessly focus on that objective.Kevin Hague: Is it a problem of success for this Government that the Auckland Council is actually caught between a rock and a hard place when it comes to housing with Auckland ratepayers being the rock and working with this Government being the extremely hard place?Hon BILL ENGLISH: The Auckland Council would not have to work with the Government if it built enough houses fast enough for the people who want to go to Auckland and pay rates. But it is also caught with dealing with community groups fostered and encouraged by the Greens to oppose new building of houses in Auckland communities when we need them.Kevin Hague: Does it make the Minister happy that he and his Government wilfully ignore the advice of organisations such as the OECD and the Reserve Bank and rule out introducing a capital gains tax to curb property speculation which is driving up house prices in Auckland?Hon BILL ENGLISH: The member may be aware that New Zealand already has tax law that taxes gains from speculation as if it is income at the marginal income tax rate. So no I am not unhappy to be considering OECD or Reserve Bank advice and not necessarily taking it because what we have discovered in this whole process is that planning law—such as that advocated by the Greens—that tries to restrict the growth of Auckland creates inequality for low and middle income households that cannot afford housing and it creates very high and volatile house prices. We will continue to work hard to undo the damage of the previous 20 years when that philosophy was put in place. [Interruption]Mr SPEAKER: Order! [Interruption] I am just waiting for Mr Twyford.Kevin Hague: Is it not insulting to tell young Aucklanders who are desperately trying to buy a house and are being outbid at auctions week after week by property speculators that this Government’s policies which do absolutely nothing to address the demand side of the housing market are a success?Hon BILL ENGLISH: What would be insulting to tell young Aucklanders is the Greens saying to them that they should have cheap houses but the Greens are opposed to roads to cars to digging up the ground to creating subdivisions and to building houses. That is what is insulting to young Aucklanders. It is Labour and the Greens saying: “You should have cheap houses but you’re not allowed to do any of the things that ensure that more houses get built faster.”Rt Hon Winston Peters: I raise a point of order Mr Speaker. My point of order is that that answer does not fulfil the requirements of the Standing Orders where ministerial answers are concerned. It was all about some other party’s so-called stance—totally irrelevant to the question being asked.Mr SPEAKER: On this occasion when I consider the start of the question “Isn’t it insulting” the Minister I think has addressed the question. It would have been helpful if he had not used it as an opportunity to attack the Green Party to the extent he did. I accept that point.