King Annette: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
King Annette: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 29 November 2012. Volume:686;Page:6937. Text is incorporated into the Bound Volume.] 
1. 
Hon ANNETTE KING (Labour—Rongotai) 
 to the  
Minister of Housing 
: What progress has the Government made in the provision of affordable home ownership in Auckland? 
Hon PHIL HEATLEY (Minister of Housing) 
: 
 We have recognised that you cannot fix housing affordability without fixing the underlying drivers of cost. The Government has recently set out its response to the Productivity Commission’s report. We will work with the Auckland Council to increase land supply and reduce the cost delays and uncertainty of the Resource Management Act along with other measures. Interest rates are at record lows saving Kiwis thousands of dollars in interest. In addition over $8 million was invested in affordable housing projects in Auckland through the Social Housing Fund and over the next 5 years as part of its redevelopment work the Housing New Zealand Corporation intends to provide 400 houses for affordable homeownership along with 600 more affordable homes in Hobsonville. 
Hon Annette King 
: Can he confirm that the Government’s affordable houses now to be built at Hobsonville will be indirectly subsidised by spreading their costs across the whole Hobsonville housing development as stated by the Department of Building and Housing at the Social Services Committee yesterday? 
Hon PHIL HEATLEY 
: The houses at Hobsonville will not be subsidised. It is pretty usual in a development that there are a range of section sizes and house sizes sold at different values. I think that indicates how much the Labour Party knows about subdivisions and the building industry. 
Hon Annette King 
: Can he confirm at this stage that there are no criteria as to who would purchase his affordable homes at Hobsonville there are no criteria for allocation there is nothing stopping developers from buying them up and onselling them and there is no requirement for them to go to first-home buyers as confirmed by the Department of Building and Housing at the select committee yesterday? 
Hon PHIL HEATLEY 
: I can confirm half of those things because they were in my speech in the announcement when I made it. I said that the Hobsonville Land Company was working through the details and would announce in the next few months exactly what the criteria were. So I announced that. I am glad that the member was listening. 
Hon Annette King 
: Obviously no work done on it. 
Mr SPEAKER 
: Order! 
Hon Annette King 
: Is he aware that the Department of Building and Housing said at the select committee yesterday that the international measure of housing affordability is that a mortgage should not exceed 30 percent of the annual household income; if so has he worked out that a buyer of one of his affordable houses at Hobsonville would need an annual income of $110000? So who is going to buy these houses? 
Hon PHIL HEATLEY 
: We made it very clear that 10 percent of the houses at Hobsonville and units there would be under $400000 another 5 percent under $450000 and another 5 percent under $485000. We called these houses more affordable because in the Auckland context houses are very expensive. We are not running up and down New Zealand saying that we can have 100000 houses across this country—66000 of them in Auckland—under $300000 each. We are not claiming that. 
Simon O’Connor 
: What reports has the Minister seen on alternative affordable housing proposals? 
Hon PHIL HEATLEY 
: I have seen a report of a proposal to build 66000 houses in Auckland for $300000 or less each based on the winner of the Starter Home Design Competition. I thought it might be of interest to the House to know that the Housing New Zealand Corporation built that home in Otara Auckland and actually the estimated cost of building that starter home in Otara Auckland was for the build $170k; the site work $25k; local authority costs $10k; consultants and other costs $10k; $27k for GST; and land $120k. That starter home was $362000. It is the flagship of the Labour Party policy. 
Hon Annette King 
: Well in light of that answer can he confirm that the size of his affordable houses to be built at Hobsonville will be as small as 65 square metres as stated by the Department of Building and Housing at the select committee yesterday; and did he confuse Hobsonville with Hobbiton? 
Hon PHIL HEATLEY 
: At the announcement I told the media and all there that the houses the units and the studio units would be one two or three-bedroom properties. I said what the costs were. I am not running up and down New Zealand saying I can build 100000 houses—66000 of them in Auckland—for less than $300000 each. I am not making that claim. The Labour Party is making that claim. 
Hon Annette King 
: I would like to table household plan Delta 65 a household plan of a 65 square metre house which is described as a cottage for holiday accommodation. 
Mr SPEAKER 
: The source of this document is? 
Hon Annette King 
: The source of this document is investorhomes.co.nz—plans minor dwellings. 
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? There is no objection. 









Document by leave laid on the Table of the House. 
Simon O’Connor 
: Has the Minister received any reports on how many sections in Auckland are currently being advertised on TradeMe for under $100000? 
Hon PHIL HEATLEY 
: Yes. I did ask for a report on section prices in Auckland under $100000 because I understood there could be many under $50000. However I have discovered that in Auckland there are sections under $100000. The number of those sections is eight—eight!