Twyford Phil: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Oral Questions — Questions to Ministers[Sitting date: 16 September 2015. Volume:708;Page:6672. Text is incorporated into the Bound Volume.]7.PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Housing: How much does the Ministry of Business Innovation and Employment estimate has been saved on building materials for a standard home by the Government’s suspensions of tariffs and anti-dumping duties on building products and since its commencement in July 2014 by how many dollars has the price of the average Auckland home increased?Hon Dr NICK SMITH (Minister for Building and Housing): The ministry stands by its estimate that the removal of tariffs and duties on building materials will save $3500 on an average new home construction. The full benefits of this will take time to flow through because it takes time to set up new supply lines it takes time to change New Zealand standards and it takes time to become familiar with alternatives in the design of houses. It is simplistic and flawed to link the cost of building materials for new homes to the Quotable Value valuations for all homes as 98 percent of them were actually built before the change was made. It is no more correct to blame the 20 percent increase in Auckland house prices that has occurred since July 2014 on the National Government than it is to blame the Labour Government for the 29 percent increase in house prices that occurred when Labour was in Government.Phil Twyford: Can he confirm that the Ministry of Business Innovation and Employment has advised that the savings from his scheme may be as low as $582 per house and that in general they have made “no discernible impact on prices” while the average Auckland house price has gone up by over $150000 in the same period according to Quotable Value?Hon Dr NICK SMITH: No I do not accept the member’s claims. I would note that house prices doubled during the period of the previous Government and it did not take a single step. The house build rate collapsed during Labour’s period to just 200 houses in a month. We have got over 1100 homes built in the last month that has been reported.Phil Twyford: Is he surprised that the consumer has seen none of the estimated savings of $2500 on plasterboard despite falls in import prices; if so why is he surprised given that his own officials warned him that in an overheated market like Auckland’s builders and developers would simply pocket those savings?Hon Dr NICK SMITH: I note that since the Government made the changes the import of plasterboard from Thailand has more than doubled. Secondly I note that if we look at the Consumers Price Index around building materials they grew by an average of 5 percent per year under the previous Government and they have grown by an average of 2 percent per year under this Government showing that we have been far more successful in keeping building materials costs under control compared with the previous administration.Phil Twyford: Why did he say: “I don’t have information that builders are being induced to buy a particular product.” when the Commerce Commission found that the Fletcher’s subsidiary Winstone Wallboards has agreements with all the major merchants that include kickback payments and one agreement that outright prevents the largest retailers stocking alternative brands?Hon Dr NICK SMITH: The Commerce Commission undertook a comprehensive investigation into those allegations. It came to the conclusion that there was no breach of the law. The member’s comments have about as much hot air as similar claims that were made by the Opposition on supermarkets which also came to naught.Phil Twyford: Why has he been talking a big game on the high cost of building supplies for the last 3 years while his main policy has resulted in zero savings for consumers and meanwhile he has been ignoring the bigger issue which is anti-competitive rorts in the building supplies market?Hon Dr NICK SMITH: We should judge by results. Under the previous Labour Government building materials increased by 5 percent per year. Since we have been the Government building materials have increased by half that rate. That is what counts.Phil Twyford: Your policy was a failure.Hon Dr NICK SMITH: The member says that the policy is not working. Actually we are building a faster rate of house build—double since I became Minister—and at a faster rate that has been going for more than 10 years.