8. GORDON COPELAND (Independent) Link to this
to the Minister of Housing
Has she read the 2008 International Housing Affordability Survey by Demographia, an organisation she has previously referred to as “reputable”; if so, does she agree that it makes “the pathway to affordable housing abundantly clear: remove Metropolitan Urban Limits … and other artificial restraints on the availability of residential land”; if not, why not?
Hon MARYAN STREET (Minister of Housing) Link to this
Yes; and, no, I do not believe that simply removing the restrictions on urban sprawl is the answer to housing affordability—and neither does the public of New Zealand.
Why, when Hugh Pavletich of Demographia, Arthur Grimes of Motu Economic and Public Policy Research Trust and the chairman of the Reserve Bank, a former Reserve Bank governor, Don Brash, Ian Page of the Building Research Association, Owen McShane of the Centre for Resource Management, and David Chaston of www.interest.co.nz all identify urban growth boundaries and other artificial restraints on land availability as the principal drivers of New Zealand’s severe housing unaffordability crisis, leading to land banking, does the Government choose to ignore that and to concentrate on peripheral matters—ignoring the central issue?
Hon MARYAN STREET Link to this
I can only assume that those people whom the member has referred to take that position because they lack imagination. Secondly, we are engaged in a much more multi-pronged approach to the issue of housing affordability than that Demographia report recommends.
Darien FentonHon MARYAN STREET Link to this
The quotation actually comes from Dr Don Brash, and appears in the introduction to the survey. I note that Dr Brash’s tendency for flip-flops has been maintained by the current leader of the National Party, John Key, who promised to scrap the affordable housing project in Hobsonville but now claims he always supported it.
Pita ParaoneTēnā koe, Madam Speaker. Does the Minister agree that improving housing affordability involves addressing both the supply side and the demand side of the issue, and that simply removing the metropolitan urban limits, as was suggested, is a simplistic solution that addresses only one part of the complex issues around housing affordability?
Does the Minister acknowledge that privately owned homes dropped from 67.7 percent of all homes in 1996 to just 62.7 percent in 2006, which is a drop of 7.4 percent on this Government’s watch; and do not those figures make a mockery of the Government’s stated aim to create an ownership society for New Zealanders?
Hon MARYAN STREET Link to this
There are all sorts of figures around the homeownership debate. What is clear is that there has been a reduction in homeownership, and it is precisely that issue that this Government is actively engaged in addressing.
Phil HeatleyWhy has the Minister’s “imaginative”, “multi-pronged” approach achieved absolutely nothing concrete for the 100,000 struggling first home seekers over the last 5 years—there have been absolutely no tax cuts to help people service a mortgage, none of the promised shared-equity houses is available, and none of the affordable homes in Hobsonville or Tāmaki is available—and why, after 5 years, does she not have a single, measurable run on the board when it comes to affordable housing?
Hon MARYAN STREET Link to this
It is patently obvious to anybody who considers this issue that the increase in house prices has been exacerbated over the last 5 years. The last 5 years have been critically problematic, for a range of reasons. This Government has addressed some demand-side measures, and is now looking to address supply-side measures. That takes some time to put into effect, because houses take a little while to build.
Will these promised shared-equity houses, these promised affordable homes, and these promised tax cuts actually appear only in election year—too late for 5 years’ worth of first home buyers, and far too late for Labour?
Hon MARYAN STREET Link to this
The Government is engaged in a thoughtful and progressive timetable to address the issue of housing supply. The key point is to build more houses, and that is where we are going.
Does the Minister not consider that her “thoughtful”, “imaginative”, and “multi-pronged” approach has actually delivered nothing for first home buyers in the last 5 years; that they actually do not believe she will provide anything for them with her empty promises of affordable homes, shared equity, and tax cuts; and that voters will dump her and her Government for doing nothing for 5 years?
Hon MARYAN STREET Link to this
One of the things this Government has done that has been particularly significant is to introduce KiwiSaver, which allows some provision for a deposit—to be matched by the Government—to be made available for first home buyers. That kind of measure is a critically important one going forward, and one that will bear fruit in the future. I have to say that the Opposition voted against such long-term recovery measures. It needs to come up with its own solutions to a long-term future problem.
I seek leave to table the KiwiSaver rules, which show that that provision is not due for another couple of years, either.
Madam SPEAKER