6. Question No. 6—HousingHon KIERAN McANULTY (Labour) to the Minister of HousingQuestion No. 6—Housing6. Hon KIERAN McANULTY (Labour) to the Minister of Housing: Is it correct as reported yesterday on Newshub that the Government intends to scrap grants to first-home buyers?Hon CHRIS BISHOP (Minister of Housing): Yes.Hon Kieran McAnulty: Does the Minister agree that many first-home buyers have relied on the First Home Grant to purchase their first home including 10000 last year?Hon CHRIS BISHOP: No actually last year—the member's wrong—7800 people received the First Home Grant so the member's wrong on that. The second point is that the evidence suggests that it brings forward the purchase of a home because it provides money towards the deposit but it doesn't actually make the difference for most people between buying a house or not buying a house and that is one of the reasons why we have reprioritised it to higher-value expenditure.Hon Kieran McAnulty: Does he stand by his statement on 28 March this year that The Government is determined to see more New Zealanders in homeownership."?Hon CHRIS BISHOP: Absolutely which is why we have a comprehensive five-point plan to fix our housing crisis. I'm happy to detail it for the member in response to that patsy but the member's heard it before which is about opening up land supply at the edge of our cities and going up inside our cities; fixing our infrastructure funding and financing system; actually doing what Phil Twyford promised to do five years ago which is smash the metropolitan urban limit in Auckland; focusing on building and construction changes being led by Chris Penk; fixing the Resource Management Act; delivering better social housing; and fixing the private rental market.Hon Kieran McAnulty: Does the Minister agree that if there are fewer first-home buyers purchasing a home then there will be more people renting?Hon CHRIS BISHOP: Well I mean look I can't believe the member is now literally—literally—stating truisms in the House. Yes it is true obviously that if the number of first-home buyers goes down most of those people will be renting. Homeownership in New Zealand is at record lows. It is down to 63 percent. That is part of the crisis we've inherited from the last Government. But actually that goes back 20 or 30 years which is why we have as I just said a comprehensive plan around land supply infrastructure incentives for councils lowering the cost of building consents fixing our planning system fixing our private rental market. We are determined to focus on the underlying problems afflicting our housing market which is not demand-side measures like first-home grants but supply-side measures. Because as the member I think is learning unless and until you fix the supply side of the market everything else is tinkering. We are fixing the underlying fundamentals.Hon Kieran McAnulty: Are first-home buyers therefore justified in feeling like they've been kicked in the guts when the Government has given landlords a $2.9 billion tax cut but he won't keep a $60 million scheme that helped them buy their first home?Hon CHRIS BISHOP: As I said on the bridge on the way here this will not be a decision that is popular with people who are looking to buy a first home; I freely acknowledge that. But Government is about doing the right thing and making the tough decisions. So I appreciate that this will not please everybody but actually Government is about doing the right thing and the last Government lapsed far too easily into thinking that the solution to every problem was to throw money at it. Actually when it comes to our housing crisis the solution is supply-side reforms. We are doing the right thing and reprioritising the expenditure to New Zealanders who need it most. I appreciate that first-home buyers won't like it but I tell you what else I'm sure the member doesn't like—and I'm sure every member in this House doesn't like—25000 people in severe and urgent need of housing on the wait-list who need a warm and dry home—Hon Peeni Henare: So build more.Hon CHRIS BISHOP: And the member says "build more"—that is what I announced today Peeni Henare. That is what I announced today; the member needs to listen up."