2. Building and Construction Industry—Building ActivityPHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and ConstructionBuilding and Construction Industry—Building Activity2. PHIL TWYFORD (Labour—Te Atatū) to the Minister for Building and Construction: Does he stand by his statement that this is a golden era" for the building industry; if so why?Hon Dr NICK SMITH (Minister for Building and Construction): Yes. The statement was made 3 years ago in 2014 when releasing the Construction Pipeline report which projected at least a 10 percent per annum growth in construction. This has transpired. Commercial and residential building has increased from $13 billion a year to $20 billion per year. This is significantly higher than previous construction booms in 2003 and 1996 in real terms—i.e. it is a higher level of activity than about 30 percent the last time there was a boom.Phil Twyford: Is it a "golden era" when data from Statistics New Zealand out today shows that in the latest quarter there was the biggest drop in construction activity in 6 years?Hon Dr NICK SMITH: That was in respect of commercial building activity which has actually been at incredibly high levels. The total level of building activity over the last year is $20 billion. The last peak in 2004 was over $14 billion. Phil Twyford: But how many houses? It's just expensive.Hon Dr NICK SMITH: I would also point out to the member interjecting that we are now building over 30000 houses a year. That has occurred only twice in the last 50 years.Denis O'Rourke: If we are still in a "golden era" for housing how is it that in the last year we have seen decreases in rental stock in Wellington of 65 percent; Otago 61 percent; Bay of Plenty 52 percent; Canterbury 48 percent; and Auckland 42 percent resulting in very large rent increases?Hon Dr NICK SMITH: The member would note that in Christchurch rents have actually declined where we have radically increased land supply. That is why I look forward to the New Zealand First Party's support for being part of the solution rather than being part of the problem by increasing land supply in other parts of New Zealand where the housing market is under pressure.Rt Hon Winston Peters: I raise a point of order Mr Speaker. That Minister was asked about rental stock not rentals. He is refusing to answer the question.Mr SPEAKER: No. I do not need assistance from the member because on this occasion the question was without doubt addressed.Phil Twyford: Is it a "golden era" when schools in Auckland are looking at building houses themselves on school grounds or sending students home because their teachers cannot find affordable housing?Hon Dr NICK SMITH: I remind the member again that the "golden era" comment was made 3 years ago in respect of the growth in the building sector. It projected 10 percent growth per year in construction and we have actually achieved almost double what was projected 3 years ago.Phil Twyford: Is it a "golden era" when the number of rentals available in Wellington has plummeted by 65 percent and the average rent in Wellington has gone up by $2340 per year? Or is that as the Prime Minister said a "problem of success"?Hon Dr NICK SMITH: There is no question that New Zealand is doing exceptionally well—that means that Kiwis are not leaving and our population is growing. As a consequence of that this Government is growing the investment in the residential area and in the commercial area and in the Budget there is a very large increase for infrastructure. Indeed it is a "golden era" in the building and construction industry across New Zealand as we build this great nation.Phil Twyford: Is it a "golden era" or a "problem of success" when families—like Ashley Portland and her two young children who are living in a tiny cold caravan in Rotorua; they have been there for 4 months because Ashley simply cannot find anywhere affordable to rent—report that kids are regularly getting sick because of the cold and the damp?Hon Dr NICK SMITH: The issue for that family and others and the main solution is to grow the number of houses that is being built. We have had for the very first time in New Zealand history—and members opposite will note—5 straight years of growth in building construction such that we have a record-high level of construction activity."