7. PHIL HEATLEY (National—Whangarei) Link to this
to the Minister of Housing
Does she agree with the findings of the Department of the Prime Minister and Cabinet’s own house prices unit that states: “All measures of affordability have declined.”, with a “growing group of renters, at all but the highest levels of income, whose home ownership aspirations will not be met given current prices, interest rates and levels of income.”, and why does she think this has occurred?
Hon MARYAN STREET (Minister of Housing) Link to this
Yes, I agree with the conclusions of the house price project report. The report indicates that no single factor is responsible for this but there have been a range of factors boosting demand for housing and a range of factors increasing the costs of supply of existing and new dwellings.
How exactly have the year-on-year rising mortgage interest rates—reaching today’s 10-year high—helped first-home buyers; and how has wasteful Government spending exacerbated these rising mortgage interest rates?
Hon MARYAN STREET Link to this
The increase in mortgage rates in recent times clearly has not assisted, but the more significant problem has been the extraordinary spike in house prices over the last few years—that has been one of many issues.
Russell Fairbrother Link to this
What initiatives has the Labour-led Government developed to address the decline in housing affordability?
Hon MARYAN STREET Link to this
The Government is working on a comprehensive plan of action to help families into homeownership by boosting the supply of affordable houses. We are developing large-scale housing developments involving partnerships, reviewing public land holdings, developing the not-for-profit sector, introducing Welcome Home Loans and shared equity, re-evaluating regulatory costs, and a number of other measures that I will not take the time to describe right now.
Why should Kiwis expect to recapture aspirations of homeownership when they have been witness to a sad 8-year history and, going forward with her announcements, Labour’s 500 Hobsonville houses will not be built until late next year; there is still not a shared-equity scheme; councils and builders oppose her affordable-housing legislation as it will drive up rates and house costs; the public land list is in its infancy—
Rt Hon Winston Peters Link to this
I raise a point of order, Madam Speaker. Supplementary questions are not a time to make a speech. They should be terse and to the point, and I ask you to stop that member or ask him to abbreviate the question he has before him.
Madam SPEAKERNo, I understand the point of order. I need no assistance. There are some members in the House who do take the opportunity to make speeches, just as there are some Ministers who do the same when they answer them. So I would ask members to observe the rule and to keep their questions and answers succinct. Mr Heatley, please continue.
Well, I have listed four points, and I am continuing—and the last cursory Building Act proposals are still proposals with no details available?
Hon MARYAN STREET Link to this
The responses this Government has made to the question of housing affordability have been comprehensive. They will take time to put into place, and we look forward to putting them into place over the next few years. The fact that we are building houses, that we have plans for greenfield and brownfield sites, and that we have a whole suite of proposals and answers to what is a very complex question stands in marked contrast to the silence from the Opposition.
I raise a point of order, Madam Speaker. I could not hear, but did the Minister say that after 8 years they are still putting them in place?
Hon Pete HodgsonI raise a point of order, Madam Speaker. There is a very good reason why that member could not hear and that is that he was shouting during the answer.
Yes, I was just about to make that observation. The member has only himself to blame if he cannot hear answers. I try not to intervene, so that we hear questions and answers in silence. So would the member please restrain himself. He has the privilege of asking the next supplementary question.
Why did not Labour in its 8-year watch get on to the housing supply-side issues that take such a long time to work through so we would not find ourselves in today’s situation, where actions, as noted in her own report, should have been taken in respect of “focusing on streamlining regulatory systems, especially around the Resource Management Act” and “increasing the amount of land available for housing”?
Rt Hon Winston Peters Link to this
I raise a point of order, Madam Speaker. You suggested that the member abbreviate his questions. He then got up straight away and went off on a dissertation that was far too long for question time, particularly when it comes to a supplementary question.
I do note that, but I also note that Ministers are required to respond to only one question in a supplementary question and to do so succinctly.
Hon MARYAN STREET Link to this
The question of affordable housing has been brewing for some time. The Government has paid attention to, first of all, the supply of houses by replacing ones that have been lost previously through sale by the previous National Government. Beyond that, we have instigated a number of demand-side measures, such as KiwiSaver and the Welcome Home Loan scheme, which have assisted thousands into their homes.
Why should Kiwis expect anything different from the last 8-year record, especially when editors and councils are saying that Labour’s “too little, too late” election-year schemes “only offer minimal relief to potential buyers” and “We needrather more radical surgery than snipping away at the edges of red tape.”?
Hon MARYAN STREET Link to this
The fact is that a number of actions have been taken, research has been done, and answers are being provided to this complex question.
Why has it taken more than 8 years for Labour to start tinkering at the fringes, when Helen Clark claimed in the 1990s that the Labour Government would “ensure that low-income people and young couples can buy their own homes again, as we always have in the past”, and does not Labour’s 8-year record make a mockery of that promise?
Hon MARYAN STREET Link to this
I know that you want short answers, Madam Speaker, and the very short answer to the last part of the member’s question is no. But the first part of the answer is that this Labour-led Government has substantially augmented household incomes. I can give one example: through Welcome Home Loans we have 3,329 families in homes of their own, which we would not have had before.
I seek leave to table a document headed “Focus on streamlining regulatory systems, especially the RMA”, which is the Minister’s own report.
I seek leave to table a document headed Labour’s schemes “only offer minimal relief to potential buyers”.
I seek leave to table a document headed “We need rather more radical surgery than snipping away at the edges of red tape”.