4. Housing Auckland—SupplyPHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and ConstructionHousing Auckland—Supply4. PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Construction: What was the increase in the housing shortfall in Auckland between June 2008 and June 2016 given that the population increased by 208900 meaning at 2.7 people per household 77370 additional houses would be needed?Hon Dr NICK SMITH (Minister for Building and Construction): Officials advised that there are not reliable figures on the housing shortfall and variations in assumptions can shift the numbers up or down by 50000. Nor do officials agree with the member's assumption of 2.7 people per household. I have seen shortfall estimates of between 15000 and 70000. The exact number does not change the policy response which is to pull out all stops to grow supply. The last 5 years has seen the number of homes being built in Auckland grow from 4000 per year to nearly 10000 per year. Auckland has never before had 5 straight years of such strong growth in home construction.Phil Twyford: Surely he must accept that with only 44000 homes consented over this 8-year period with 77000 additional homes needed a shortfall of more than 32000 homes has built up on his watch?Hon Dr NICK SMITH: No I do not accept that and I would draw the member's attention to his own leader's comment and that is that it takes time to grow supply. And if you look over history the truth is that the population growth varies more quickly than what you can—[Interruption]Mr SPEAKER: Order!Hon Dr NICK SMITH: If you look at history population varies far more quickly than the construction industry is able to respond and there have been many periods when there has been a lag in getting the new homes built to support that population.Jami-Lee Ross: What reports has the Minister received of opposition to housing projects in Auckland that would help to increase supply?Hon Dr NICK SMITH: Housing projects that would help address the shortfall are being opposed all over the place in Auckland for reasons like character impacts on bird life impacts on landscape impacts on the Hauraki Gulf and impacts on amenities. The Three Kings Quarry development by Fletcher's which involves 1500 homes has been held up due to opposition being led by Labour MP Michael Wood. The Point England project involving 300 homes in Tāmaki is also being opposed by members opposite. There is a big 500-home development the Ōtuataua housing project in South Auckland—that too is being vigorously opposed by members opposite. Those members cannot have it both ways: complain about supply not growing fast enough and then every time there is a housing project invent some reason as to why it should not proceed.Phil Twyford: Did he know that the number of new homes is year after year falling so far behind population increase that it means more overcrowding and extreme demand pressures that have given Auckland the fourth most unaffordable housing in the world; if not why not?Hon Dr NICK SMITH: Firstly I would point out that house construction dropped to the lowest level in 40 years when Labour was in office during the global financial crisis in 2008 and that over each of the last 5 years the number of homes being constructed has grown by more than 20 percent per year. I simply challenge the member: tell me a period between 2012 and 2016 where there has been longer and more consistent growth in house construction?Phil Twyford: Does he agree with Bernard Hickey who said this morning: The Government's attempts to downplay the scale of the shortage and to exaggerate the scale of the building response makes it look out of touch and defensive."?Hon Dr NICK SMITH: No. Furthermore I would simply point out that the number and value of building consents have grown consistently very strongly for 5 years. And again I have to agree with Mr Little that you cannot grow housing supply overnight.Phil Twyford: Is he aware that Aucklanders are suffering unaffordable housing and gridlocked roads as a direct result of his Government's failure to invest in infrastructure including housing and is this the problem Bill English meant when he said that rapid population increase is the right kind of problem to have?Hon Dr NICK SMITH: It is true that both New Zealand and Auckland are very successful and are growing strongly. It is equally true that during Labour's years hundreds of thousands of New Zealanders left for Australia rather than choosing to live in our country and that has put pressure on infrastructure. But it is rich for members to say that infrastructure is not being invested in. Only yesterday I announced the process for two more $2.2 billion roading projects going through the board of inquiry process under Resource Management Act reforms that members opposite opposed. I do also understand that the Waterview project the biggest single transport project in New Zealand ever is due for construction and completion in the next couple of months.Phil Twyford: Does he agree with the Reserve Bank's comment last week that "Migration flows have increased demand for housing."?Hon Dr NICK SMITH: It is absolutely true that not having 40000 Kiwis leaving for Australia is putting pressure on the education sector in terms of kids in terms of housing and in terms of transport. The difference is that members on this side of the House welcome the fact that Kiwis are voting with their feet and staying in this beautiful country."