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Housing Affordability—Hobsonville Development

Thursday 3 April 2008 Hansard source (external site)

Heatley8. PHIL HEATLEY (National—Whangarei) Link to this
to the Minister of Housing

How does she reconcile the definition of “affordable housing” in the Affordable Housing: Enabling Territorial Authorities Bill as being “affordable to low and moderate income earners”, with the Hobsonville development’s 500 “affordable homes” that Housing New Zealand Corporation says will “cost approximately $350,000 and be targeted at households earning about $70,000 per year”?

StreetHon MARYAN STREET (Minister of Housing) Link to this

By recognising that there is a range of ways of helping a range of people into affordable homes.

HeatleyPhil Heatley Link to this

How does the Minister expect builders to build affordable houses under her affordable housing bill, when her own flagship Hobsonville scheme cannot do it, even with the economies of scale that it has, without it being propped up by even more Government schemes?

StreetHon MARYAN STREET Link to this

Affordability can be created by a Government that chooses to intervene actively to assist first-home buyers—not by an Opposition whose only solution is, possibly, to propose its self-appointed housing expert, Bob Clarkson, as the gap filler.

ChoudharyDr Ashraf Choudhary Link to this

Has the Minister seen any reports concerning affordable homes in Hobsonville that she finds difficult to reconcile?

StreetHon MARYAN STREET Link to this

Yes; I have seen two reports that describe affordable housing in Hobsonville variously as economic vandalism that should be scrapped and as something to be welcomed. These reports both come from John Key, and I do have trouble reconciling them.

HeatleyPhil Heatley Link to this

Is the Minister going to prop up every single other affordable house in the country that she expects private builders to provide, if she is going to prop up her affordable houses at Hobsonville with compounding shared-equity schemes?

StreetHon MARYAN STREET Link to this

There are ways and ways of addressing housing affordability. One of them is to take initiatives like this—engaging with other providers of housing to assist, in partnership, to provide affordable houses.

HeatleyPhil Heatley Link to this

Are the Auckland councils, Local Government New Zealand, and the Christchurch, Wellington, and Nelson councils all saying her affordable housing bill will “push up rates” and is “pushing Government responsibilities on to councils” because they resent her Government’s 8-year record of falling homeownership, compounding red tape, low after-tax income, and skyrocketing mortgage rates?

StreetHon MARYAN STREET Link to this

If the member got out more, he would discover that a number of territorial authorities actually approve of the intention of the bill, and have said so publicly.

HeatleyPhil Heatley Link to this

Do builders who say that the Minister’s solution to the need to boost cheap houses is unworkable and will “push up the prices of other houses” say that because they resent her Government’s 8-year record of doing nothing about falling homeownership, doing nothing about compounding red tape or low after-tax incomes, and doing nothing about rising interest rates?

StreetHon MARYAN STREET Link to this

There are ways and ways of addressing housing affordability, and I invite the member to watch this space.

HeatleyPhil Heatley Link to this

Why did the Labour Government not do something years ago about falling homeownership, compounding red tape, low after-tax incomes, and rising interest rates, so that it would not have to roll out these roundly criticised fringe schemes in election year?

StreetHon MARYAN STREET Link to this

The Government is proceeding on a comprehensive suite of options to address this issue. I am really sorry that the member continues to fail to get it.

DysonHon Ruth Dyson Link to this

Are the Auckland, Wellington, and Christchurch local authorities that the member Phil Heatley referred to in his previous supplementary question the Auckland City Council, which required central government to buy out its previously publicly owned houses to ensure the security of tenure of the mainly pensioner tenants; the Wellington City Council, which has had a $200 million partnership with central government; and the Christchurch City Council, which just put its rents up 24 percent, saying that that was all right because central government would pay the tenants more in accommodation supplements?

StreetHon MARYAN STREET Link to this

Those are the same local authorities, and I would add the Nelson council to the mix. I would say, beyond that, that my visits to each of those territorial authorities—and I invite the member to do the same kind of legwork—have proven to me that they are very supportive of the intention of, and the mechanism in, the bill.

HeatleyPhil Heatley Link to this

I seek leave to table a New Zealand Herald article that refers to the bill pushing responsibilities on to the councils.

WilsonMadam SPEAKER Link to this

Leave is sought to table that document. Is there any objection? Yes, there is objection.

HeatleyPhil Heatley Link to this

I seek leave to table a New Zealand Herald article that refers to the bill pushing up rates.

WilsonMadam SPEAKER Link to this

Leave is sought to table that document. Is there any objection? Yes.

HeatleyPhil Heatley Link to this

I seek leave to table a document from the Property Council that refers to the housing bill pushing up the price of other houses.

WilsonMadam SPEAKER Link to this

Leave is sought to table that document. Is there any objection? Yes, there is.

StreetHon MARYAN STREET Link to this

I seek leave to table a press release from the Waitakere City Council welcoming the initiatives in the affordable housing bill.

WilsonMadam SPEAKER Link to this

Leave is sought to table that document. Is there any objection? There is objection.

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