12. Question No. 12—Building and ConstructionTIM VAN DE MOLEN (National—Waikato) to the Minister for Building and ConstructionQuestion No. 12—Building and Construction12. TIM VAN DE MOLEN (National—Waikato) to the Minister for Building and Construction: How many applications has the Residential Earthquake-Prone Building Financial Assistance Scheme had since its inception in September last year and how much has been appropriated for the scheme?Hon POTO WILLIAMS (Minister for Building and Construction): Many apartment owners are finding themselves in difficult situations complying with the earthquake-prone building system. Since the scheme was set up last year Kāinga Ora has continued to work with potential applicants to get borrower-ready. In the meantime it is yet to receive any application for the Residential Earthquake-Prone Building Financial Assistance Scheme while this work is ongoing. To answer the second part of the member's question: $10 million has been appropriated for loans under this scheme. [Interruption]SPEAKER: Order! Order! I know the Deputy Prime Minister might have been invited to make that interjection but it is not at all helpful to describe members in that way.Tim van de Molen: Point of order Mr Speaker. Yes thank you. The second part of the question was how much has been appropriated for the scheme". The Minister gave an answer to one portion of the appropriation not to the entire appropriation for that scheme.SPEAKER: I think that's a fair point.Hon Grant Robertson: Speaking to the point of order. I—SPEAKER: No no. I've dealt with the point of order.Hon POTO WILLIAMS: I note that there are additional operating expenses for Kāinga Ora operating over four years and that's of $3.75 million and also $4.8 million for below-market interest rates over four years.Tim van de Molen: What advice has the Minister sought or received about altering the criteria so that the scheme might attract at least one applicant?Hon POTO WILLIAMS: The scheme was introduced in September. Since that time we've had 25 expressions of interest.Chris Bishop: Yeah but no applications—no one's applied.Hon POTO WILLIAMS: That could be for one of two reasons. The first reason could be that—Hon Member: Useless.Hon POTO WILLIAMS: —if the member would let me answer the question—people are waiting to get themselves borrower-ready. What I mean by that is ensuring that they have all the information that they need to complete the application. It's still early days. The other reason may be that they've been able to source funds to make the changes from other sources.Tim van de Molen: Does she think that it is a good use of taxpayer funds when 45 percent of the cost of the scheme is to service it especially given there has not been a single application yet?Hon POTO WILLIAMS: What I think is important to note here is that apartment owners have got to comply with earthquake-prone building standards and for some owner-occupiers people who live in these homes they want to have the ability to do that. We are offering them one such ability. If they have other means of doing so that's great. But if they don't they can fall back on the Government scheme.Tim van de Molen: So does she expect this scheme to be more or less of a failure than KiwiBuild?Hon POTO WILLIAMS: I would direct perhaps that question to his colleague—[Interruption]SPEAKER: Order! Order! The time for oral questions is concluded."