‘I refute that’ – PM rubbishes Simon Bridges' claim that KiwiBuild cost was underestimated by $18b

A fiery accusation by National leader Simon Bridges that Labour miscalculated the cost of KiwiBuild by $18 billion dollars shows a basic misunderstanding about how the scheme works, the Prime Minister suggested today as she took questions from reporters.

In a press release distributed this morning, Mr Bridges claimed KiwiBuild had lost credibility because its cost had been "woefully underestimated".

"Documents released to National show KiwiBuild will cost 10 times more than what Labour calculated and announced in Opposition," Mr Bridges said. "Earlier this year the Ministry of Business, Innovation and Employment advised ... that the $2 billion budget was only enough to build 1000 houses a year under Labour's original model.

"But Labour has promised it would build 10,000 homes a year by the end of its first term in office."

When asked today about the accusation that Labour should have allocated $20 billion, Ms Ardern answered bluntly: "I refute that."

"We've always said that the $2 billion that's been set aside is to kick-start the KiwiBuild programme," she said. "Of course, as we sell homes that goes back into the KiwiBuild fund in order for us to continue building.

"And we've also been very open that we are partnering with developers and others in order to deliver the full scale of KiwiBuild."