3. Question No. 3—Prime MinisterDr SHANE RETI (Deputy Leader—National) to the Prime MinisterQuestion No. 3—Prime Minister3. Dr SHANE RETI (Deputy Leader—National) to the Prime Minister: Does she stand by all her Government's statements and actions?Hon GRANT ROBERTSON (Deputy Prime Minister) on behalf of the Prime Minister: Yes particularly the Government's decision to incentivise investment into the construction of new homes and fund the vital infrastructure needed for new housing like pipes and transport links. New Zealand's housing crisis as we've said many times in this House and beyond has been decades in the making and there is no quick fix. It's an issue that will take time to turn around but our package of urgent but also long-term changes will increase housing supply relieve pressure on the market and we hope make it easier for first-home buyers.Dr Shane Reti: Under the housing policy she announced on Tuesday if a New Zealander has a mortgage across two properties one which is a new build and one which isn't will their interest be tax deductible?Hon GRANT ROBERTSON: Sorry can the member just ask that question again?Dr Shane Reti: Sure. Under the housing policy she announced on Tuesday if a New Zealander has a mortgage across two properties one which is a new build and one which isn't will their interest be tax deductible?Hon GRANT ROBERTSON: On the matter of interest deductibility the detail of the policy is now subject to the normal Inland Revenue tax consultation process.Dr Shane Reti: Has she then received a Cabinet paper providing detailed analysis on the impact of removing interest deductibility?Hon GRANT ROBERTSON: On behalf of the Prime Minister I think that if the member listened to the previous answer what we have announced is the framework and the decisions that will guide interest deductibility being removed. We now get into the detail of that through a consultation process with people who're affected. This is indeed the normal way in which major changes to the tax system are made.Dr Shane Reti: Will she guarantee that no further business costs will be removed from standard expensing practices as this policy does?Hon GRANT ROBERTSON: I can say this to the member: that the reason that this loophole was closed was in part because those people who are owner-occupiers cannot do what investors can do in the property market. There is no intention to do that in any other industry.Dr Shane Reti: How does she respond to Business New Zealand's accusation that the Government are being misleading by characterising tax deductibility as a loophole and that there is no reason for this decision and that it will stall business investment—SPEAKER: Order! Order! Hon GRANT ROBERTSON: On behalf of the Prime Minister I reject that assertion by Business New Zealand. What I would say is that this Government came in on a promise to New Zealanders to be able to fix the housing crisis. We have proposed solutions. We recognise that this is not an easy issue. It will take a long time to fix but one of the things New Zealanders want is for first-home buyers to have a fair go. That means needing to make changes. The interest deductibility changes are part of that.Dr Shane Reti: Can she name any one of the 17 child poverty measures of material hardship that she is targeting that is not directly affected by rising rents and if so which one?Hon GRANT ROBERTSON: Well obviously issues of housing costs are essential when it comes to all of the measures of child poverty. That's why when we look at the top three measures above the 17 they do before - housing costs and after - housing costs. Clearly housing costs are a significant part of the income of families and therefore the support for children. Addressing child poverty again requires a number of different measures some of which are about lifting incomes some of which are about making sure more houses are built which is part of the package announced the day before.Dr Shane Reti: Why then did she write in answer to written questions that none of the 17 indicators measuring material hardship are directly impacted by rising rents?Hon GRANT ROBERTSON: I just said to the member housing costs are an important feature of addressing child poverty.