Twyford Phil: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeTwyford Phil: Questions for Oral Answer — Questions to Ministers[Sitting date: 14 November 2013. Volume:694;Page:14711. Text is incorporated into the Bound Volume.]9.PHIL TWYFORD (Labour—Te Atatū) to theMinister of Housing: What advice if any has he received on public support for measures designed to reduce demand in the housing market?Hon Dr NICK SMITH (Minister of Housing): I have seen various public polls on the Reserve Bank’s loan-to-value ratio speed limits and public commentary with some showing support and some opposed. The job of the independent Reserve Bank is to maintain financial stability not to win popularity contests. We need only look at the calamity resulting from out-of-control house price bubbles in Europe and in America to see the damage that they can do to economies. I have been confused by some reports. Earlier this year the Opposition was calling for the Reserve Bank to use loan-to-value ratios but now it is strongly opposed to them. I guess that is what happens when you put “Dithering Davids” and twits in charge—Mr SPEAKER: Order! That part does not help the order of this House.Phil Twyford: What does he say to the 56 percent of National Party voters who believe that loan-to-value ratio lending restrictions are unfair to first-home buyers and the 44 percent of National Party voters who support a capital gains tax as a way of restraining house price increases or are they just misinformed?Hon Dr NICK SMITH: I do not give great veracity to those polls. For instance if you took a poll on whether the Reserve Bank should have put up interest rates at any time in the last 20 years I bet the majority of people would say that they do not want interest rates to go up. But how many people in this House—in fact the vast majority—voted for an independent Reserve Bank so that we would have financial stability? I note in the polls that 75 percent of Labour supporters give greater credibility to the economic policies of this Government than they do to his party’s economic policies and he should have a look in the mirror.Phil Twyford: To what extent has his chaotic and inept management of housing policy driven support for a capital gains tax from 37 percent to 52 percent since August along with the fact that he has shut first-home buyers out of the market house prices are still going up and new builds are going down all on his watch?Hon Dr NICK SMITH: I would just like to challenge members opposite and say that if house prices go up by double or by 10 percent compound per year during their time in Government how would you rate a Government where they have gone up by 3 percent per year? I would say a heck of a lot better. I would also note that building permit figures the reliable measure of new builds have gone up every single month this year—have gone up every single month. The final point I would say to members opposite is that all economists agree that Labour stuffed it up in the last decade by not taking any steps during that house price bubble. We are learning the lessons from Labour’s mistakes.Phil Twyford: Is he surprised that more young people aged 30 to 44 than any other age group think that loan-to-value ratios are unfair to first-home buyers that loan-to-value ratios will not restrain house price inflation and that a capital gains tax is fair and will restrain house price inflation or does he believe that people in this age group are also wrong and misinformed and that as usual he is right?Hon Dr NICK SMITH: The first point is that that is interesting coming from a member who at the beginning of the year was asking for loan-to-value ratios. So myquestion is why it is that he is so disconnected from the young people he claims to represent. Secondly I note that in Australia where they have some form of capital gains tax—not very successful—and they have foreign buyer bans the latest report this week shows that there is a lower portion of first-home buyers than ever showing the nonsense of the policy of members opposite. The worst damage for young homebuyers is from the ongoing escalation of house prices. Enormous damage was done to young homebuyers when house prices doubled under the previous Government. That is why this Government has got so many policies under way to improve access for first-home buyers.