Page 877 - Week 06 - Tuesday, 25 July 1989
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form of short-term, interest-free loans that are paid directly into the home loan account.
In New South Wales, for instance, a relief loan can be paid back over whatever period the borrower decides. In Victoria loans of up to $4,000 are made for a period of up to one year. In Queensland reduced loans are provided, and in South Australia relief of up to $50 a week is given through an interest-free loan. In Tasmania the development authority provides loans as low as 10 per cent, and the State bank of Tasmania has released money to borrowers at 15 per cent. In Western Australia the Government runs a home buyers guarantee scheme in conjunction with lending institutions. This scheme freezes repayments for three years for those who qualify.
A short-term relief scheme is a necessity for the ACT, given the current problems that home owners face due to high interest rates, and because these problems will worsen if interest rates remain high.
By introducing policy changes we can amend the impending crisis. In this light the Labor Government of the ACT must change its policy attitude to home owners and buyers. There are several things that the ACT Labor Government can do. Labor can reassess its Legislative Assembly election proposal to change the method of charging for headwork services for homes. This involves charging fully for the initial costs of providing electricity, stormwater and sewerage headworks, and would add a further $8,000 to the cost of an average block of land. Surely, to help in the problems caused by high interest rates, headwork charges should not be included in land prices.
Labor should override its policy of not bringing the ACT into line with most other States in Australia by not providing stamp duty concessions for first home buyers. Introducing legislation to provide stamp duty concessions for first home buyers could cut the $1,600 that the average first home buyer currently has to pay in stamp duty. By changing these two directions alone, the Labor Government could start to help the victims of the interest rate hike.
There are other ways in which it could help. Although it has announced a total review of the Housing Trust's operations, the ACT Government should be more specific in matters of those review operations. I am pleased to see that earlier today, in question time, we found out how long the review will take and that is of more than just public sector housing. A total review of the ACT Housing Trust operations would ensure that the correct administrative procedures are followed. In doing so, the most efficient and effective methods of providing housing assistance to those in need could be sought.
In regard to the threatened apprenticeship levels that the high interest rates impose, the suggestion of the Master Builders Construction and Housing Association of the ACT is
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