"But actually they have been a pretty phenomenal set of failures."
Fewer than 2000 houses had been built in special housing areas since they were designated for fast-track consenting in 2013.
"When you look at the problem in Auckland, a shortfall of 40,000 that built up, and is getting worse by 5000 to 6000 every year, special housing areas have virtually made no difference."
Move to reduce the cost of building material for new home building had been "a complete shemozzle" with costs actually going up.
While there was building activity in Auckland it was well below what was needed. To keep up with population growth it needed 16,000 extra a year and only 10,000 new houses had been consented in the past 12 months.
Twyford is also critical of National's mass building programme saying the 500ha estimate of surplus land was excessive, that too much of Housing New Zealand's land assets will end up in private hands and that there will be wont be enough affordable houses.
"That land is gone forever - future generations are going to need state housing," he said.
Between 20 per cent and 50 per cent of the for-sale homes will be affordable in the Crown Building Project, below $650,000.
But Twyford says Labour would build stand-alone houses for $600,000 and apartments and town houses for $500,000.
He wants to see more measures in the Budget for social housing and emergency housing after "the winter of misery" last year.
BIG BUDGET MOVES - HOUSING
2013
• Special Housing Areas for three-years to allow fast track of consents to allow 39,000 homes to be built in Auckland over three years.
• Extends income-related rents to community housing providers, sets up $139 million social housing fund for private providers, and introduces reviewable tenancies in state houses.
• Extends house insulation programme to 46,000 houses, costing $100 million over three years.
• $1.6 billion over three years to new houses and repairs in Canterbury.
2014
• Reduce the cost of building a new house by $3500 through a zero tariff covering 90 per cent of materials in a new home including roofing, cladding, insulation, paints, electrical and plumbing fitting, and suspension of anti-dumping duties on plasterboard, wire nails and reinforcing steel bar.
2015
• Crown land development scheme to identify surplus land on which private sector development can increase housing supply including affordable homes, estimated at 500ha. Contingency fund of $52.2 million to work on it.
• Capital gain tax introduced on investment properties sold within two years as anti-speculation measure.
• Overseas buyers required to supply IRD number and NZ bank account, tax ID from home country to enforce compliance of tax rules.
• Withholding tax on non-residents selling residential property foreshadowed.
2016
• Surplus Crown land development scheme boosted by $100 million in capital funding.
• Emergency housing and special needs grants gets separate funding of $41.1 million over four years.
• $300 million package for emergency housing over four years to fund 1400 extra places over NZ including $120 million to build, buy or lease properties.
2017
• Crown Building Project for 34,000 homes (13,500 state houses and 20,600 affordable and market homes) to be built where 8300 existing rundown houses exist - phase one to cost $2.23 billion over next four years.
