Twyford Phil: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Questions for Oral Answer — Questions to Ministers[Sitting date: 04 December 2013. Volume:695;Page:15211. Text is incorporated into the Bound Volume.]12.PHIL TWYFORD (Labour—TeAtatū) to theMinister of Housing: Does he stand by all his statements?Hon Dr NICK SMITH (Minister of Housing): I do. I stated that we needed to free up land supply particularly in Auckland and we have passed and are now implementing the special housing legislation. I stated that we needed to reform social housing and we have passed that bill and supported the bill with a record number of community social houses. I stated that we needed to expand our help for first-home buyers and we have doubled the number of KiwiSaver first home deposits and trebled the number of Welcome Home Loans. I stated that we needed to get our own houses in order and we have this year delivered on our commitment to insulate every single State house. I stated that we needed to rein in housing development costs and yesterday we passed the first reading of our bill to do just that. I could go on and on.Mr SPEAKER: No you cannot.Phil Twyford: Does he stand by his ambition to make the dream of homeownership a reality for more New Zealanders given that census data shows a 2 percent reduction in homeownership largely on his Government’s watch; first-home buyers have disappeared from the market because of loan-to-value ratios; the average house price in Auckland has gone up by $180000 since 2008; and mortgage repayments on an average Auckland house—assuming a 10 percent deposit and a 25-year mortgage—have gone up by $430 a month since 2008?Hon Dr NICK SMITH: The data from the census released by Statistics New Zealand shows that homeownership levels in New Zealand have been in decline consistently since 1987 and that is why the Government is making major policy changes. But if you look at the history of homeownership in New Zealand the single most important factor for New Zealanders being able to afford their own home is interest rates and they are at their lowest level in 50 years and are half what they were when Labour was last in Government.Phil Twyford: Has he sought advice on the likely further reduction in homeownership given that the Reserve Bank is predicting interest rates of 8 percent next year and does he realise that 8 percent interest rates—assuming a 10 percent deposit and a 25-year mortgage—would increase mortgage repayments on an average Auckland house by $850 a month?Hon Dr NICK SMITH: I can assure that member that this Government is very focused on keeping interest rates low for longer. That is exactly why the Reserve Bank has introduced the loan-to-value ratio mechanisms which members opposite have vigorously opposed. The biggest threats to interest rates are the very policies that he and his Green mates are advocating.Melissa Lee: What advice has the Minister received on housing affordability over the past decade?Hon Dr NICK SMITH: TheHome Affordability Report the Massey University index that compares average house prices incomes and interest rates shows that they deteriorated by 57 percent between 2003 and 2008. In fact according to Massey University housing affordability was at its worst in 2008 when compared with any other time in New Zealand history. That same index shows that housing affordability has improved in every year since 2008.Phil Twyford: Does he stand by his statement that housing supply is the core of the challenge now that the latest building consent data shows that seasonally adjusted building consents have gone down by 2.3 percent since the introduction of loan-to-value ratios—that is from 1625 in September to 1588 in October—and will he heed the warnings of the Registered Master Builders Federation that loan-to-value ratios threaten thousands of new builds every year?Hon Dr NICK SMITH: The biggest threats to first-home buyers are high interest rates and house prices going up like they did between 2003 and 2008. Unlike members on that side of the House we on this side of the House respect the independence of the Reserve Bank because that is the best long-term way to ensure financial stability.Melissa Lee: What advice has the Minister received on home building consent numbers and increased activity in the construction sector?Hon Dr NICK SMITH: I am advised that the number of building consents issued in the last quarter was the highest in 5 years. We are building 4000 more homes per year than we were a year ago and building a lot more houses than we were building in the last quarter of 2008. Last week the GDP figures came out and what they showed was the biggest ever—the biggest ever—increase in residential house building. That shows that this Government’s supply policies are working.Phil Twyford: I seek the leave of the House to table a document showing the Minister that there was an earthquake in Christchurch.Mr SPEAKER: I ask the member to use a bit of sense before he raises a point of order.Phil Twyford: Why does he think that the Prime Minister told journalists that he was tracking Auckland building consents week by week and that they were going up and has he advised the Prime Minister that in fact Auckland building consents have gone down by 24 percent since May and have decreased every month for the last 4 months?Hon Dr NICK SMITH: Oh the member is making his numbers up. The number of building consents in Auckland is 25 percent higher than it was a year ago. It has been consistently growing quarter by quarter and as we have seen with the special housing areas legislation already we have freed up another 5000 sections. Before Christmas we will be doing at least that number again. My question to members opposite is: why have they opposed every single measure such as the special housing areas legislation that will actually enable Auckland to build more houses?Phil Twyford: I seek leave to table the report from Statistics New Zealand on building consents—Mr SPEAKER: Order! Statistics New Zealand information is very freely available to all members.Hon Clayton Cosgrove: I raise a point of order Mr Speaker. Although accepting your ruling I just say that as I understand it you did rule a couple of weeks ago that where a member calls another member’s word into question—and the Minister did say that the member was making it up—even though a document was public it could be tabled under those circumstances in order to substantiate the member’s point.Mr SPEAKER: Yes and on occasions that would be useful for the House when the information is not freely available. In this case the member asked a question with apolitical loading. The Minister is at liberty to dispute those figures and that is exactly what the Minister did.Hon Dr NICK SMITH: I seek leave to table a report that I have just received from the Ministry of Business Innovation and Employment on the number of building consents issued showing—Mr SPEAKER: Order! Can I just clarify. Is this a document and information that is freely available?Hon Dr NICK SMITH: No it is not. It has become available to me as Minister in only the last 2 days.Mr SPEAKER: I will therefore put the leave for that information to be tabled. Is there any objection? There is objection.