9. Question No. 9—RevenueBARBARA EDMONDS (Labour—Mana) to the Minister of RevenueQuestion No. 9—Revenue9. BARBARA EDMONDS (Labour—Mana) to the Minister of Revenue: What reports has he seen about the proposed change to interest tax deductibility for existing residential rental properties?Hon DAVID PARKER (Minister of Revenue): I've seen a number of positive reports. Commentators and economists have recognised that removing interest deductibility for investors in existing rental properties will tilt the housing market in favour of first-home buyers new housing and the wider productive economy. Greg Ninness of Interest.co.nz said the response was gutsy" and the timing of making such a change is perfect with interest rates at record lows. Making this change at this time will "help ensure that those investors who remain in the market are better capitalised". The International Monetary Fund had warned about the risk of unsustainable house prices to our wider economy and recommended a response that differentiated between investors and first-home buyers. The ANZ have said they will now look at changing capital requirements for investors in existing homes. All of these reports give me confidence this change will result in more of our existing homes being bought by people who live in them.Barbara Edmonds: What reports has he received from industry leaders on the change to interest deductibility rules for existing residential rental properties?Hon DAVID PARKER: I have received direct feedback from CEOs and chairs of a number of NZX-listed productive economy companies. They all congratulated the Government on this change. They think it's good for the economy good for exports and good for society. They think it will work.Barbara Edmonds: How will the proposed changes to interest deductibility rules for existing housing benefit the wider economy?Hon DAVID PARKER: Stephen Bennie of Castle Point Funds was reported in the New Zealand Herald as saying that international investors were previously expecting interest rate hikes by the Reserve Bank to calm the residential market. This change to deductibility rules is seen by the market as reducing the risk of interest rate hikes which would have affected everyone including homeowners—all of them—and exporters.Hon Michael Woodhouse: Does he agree with reported comments from Findex senior partner Scott Mason who said in the Otago Daily Times yesterday "Removing interest deductibility for most landlords is a significant and unprincipled amendment to the tax system." and if not why not?Hon DAVID PARKER: No. I think he's wrong.Barbara Edmonds: What reports has he received on the proposed interest deductibility changes as part of the Government's response to the housing crisis?Hon DAVID PARKER: I saw reports this week saying the Government needed to act swiftly and decisively on the housing crisis and I've seen reports from the same people this week saying the Government's acted too swiftly and decisively on housing reports and that we should slow things down and keep them as they are. To do that would risk a housing bubble. The Government is on the side of renters first-home buyers owner-occupiers to investors in new builds. Some people say housing costs too much but then oppose every move to address it. It appears highly leveraged speculators have the Opposition on their side."