Twyford Phil: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Oral Questions — Questions to Ministers[Sitting date: 11 February 2015. Volume:703;Page:1461. Text is incorporated into the Bound Volume.]10.PHIL TWYFORD (Labour—Te Atatū)to the Minister for Building and Housing: Does he stand by his statement that the Massey University home affordability index is the “comprehensive” and “neutral” measure?Hon Dr NICK SMITH (Minister for Building and Housing):Yes there are three housing affordability indices: from Demographia from Roost Mortgage Brokers and from Massey University. The key difference is that the Roost and Massey indexes include interest rates whereas Demographia includes only house prices and incomes. I appreciate that members opposite would prefer to exclude interest rates from the equation. They are at a 40-year low and half what they were when we came into Government. I note that interest rates have consistently been lower under National Governments over the last 50 years.Phil Twyford: Is he aware that the Massey University housing affordability index declined by 14 percent last year that Auckland is now among the 10 most unaffordable cities in the world and that average Auckland house prices went up $80000 last year according to Quotable Value New Zealand—all on his watch—and how many extra affordable homes will be built now that we have three Ministers paid to fix the mess that his policies created?Hon Dr NICK SMITH: I note that last year we built over 24000 homes the highest number in years which shows that progress is being made. In respect of the Massey University housing index the most interesting factor is this: the worst index was recorded in 2008 when housing affordability was 26 percent worse than what it is today—so there goes that. It was 26 percent worse in 2008. I will not be so uncharitable as to mention which party might have been in Government in 2008.Phil Twyford: When the Reserve Bank Governor recently warned the Government that much more needed to be done to build more houses was he referring to the fact that consent numbers in Auckland are only a little more than half of what the city needs just to stand still and that 18 months after he announced his special housing areas only 20 houses have been completed as a result of his accord; or is the housing crisis just someone else’s fault?Hon Dr NICK SMITH: Last year in Auckland we built 600 houses per month. When we became the Government only 200 houses per month were being built in Auckland so we are making three times the progress. In respect of whether we need to do more to improve housing supply and affordability members on this side of the House say yes. That is why we are introducing HomeStart on 1 April and that is why with the ACT Party a key priority is Resource Management Act reform this year. It will be interesting to see whether members opposite are interested just in hot air or in further legislative reform that will help Kiwis who want to buy a home.David Seymour: Given that it is important to learn from the past could the member reflect on some of the factors that may have led to the Massey University index deteriorating every year but one from 1999 to 2008?Hon Dr NICK SMITH: Over that period house prices in New Zealand doubled. Over that same period interest rates went through the roof. So in all of New Zealand’s 150-year history in all of the 23 Governments that have been privileged to sit on this side of the House the worst record of all in respect of homeownership and affordability was the last Labour Government. [Interruption] That is absolutely true. Interest rates went through the roof house prices doubled and that is why this Government’s reform agenda with support parties is so important for giving Kiwis a fair shake at being able to own their own home.Phil Twyford: Why are homeownership rates dropping and why does the Minister continue to blame the Resource Management Act for National’s housing crisis when under the last Labour Government we were building twice as many houses as he is currently building under the same Resource Management Act?Hon Dr NICK SMITH: Let us get some facts right. The member has just claimed that Labour was building twice as many houses as we are. Last year we built 24000. Two times 20 is 48000. I challenge the member to tell me what year New Zealand built 48000 houses because my officials tell me it has never happened and he is dreaming.