Page 1872 - Week 09 - Thursday, 19 October 1989
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and I will not go through that - covers the costs of the first home buyers scheme.
I gave Mrs Grassby's department details of our scheme in relation to this, which not only would cover all first home buyers but also would provide between about $500,000 and $800,000 additional revenue to the Territory by means of setting up an agents fidelity guarantee fund. I again commend that scheme to the Government. (Extension of time granted)
I will briefly flag this scheme which, on current figures, would bring in $2.25m from funds currently lying idle and from the investment of those funds, which would pay for a first home buyers scheme covering all first home buyers, regardless of the means test, and would mean having additional money left over.
I suggest that the Government investigate and indeed incorporate into its policy a fidelity guarantee fund which is run by the industry. The Housing Industry of Australia has been putting out papers on this for several years. The aims of the fund should be to protect consumers against possible loss of moneys due to defalcation - I think that is where the agent hops off to Buenos Aires and we do not see him again - to provide stamp duty exemptions to first home buyers and to provide protection and assistance to home buyers and tenants.
The source for this fund should be investment by the fidelity guarantee fund of, firstly, bond moneys held by landlords and agents. For agents, we would suggest a figure of 80 per cent of minimum quarterly balance in trust accounts and for all others 100 per cent of bond moneys. Also, in the case of deposits held under contracts for sale, for agents, 35 per cent of the minimum quarterly balance they hold and for others 35 per cent of each individual deposit where settlement is said to occur in excess of two weeks after exchange of contracts.
I am told by the experts in that area that those are about the ideals and are figures which can be easily operated and which will work quite satisfactorily. The suggestion for the application of the moneys from the fund would be - and bear in mind the estimate here is that, invested at a current rate in safe investments, it would net $2.25m per annum - five per cent for community interest groups such as tenants welfare rights and the legal centre to help with dispute resolution; five per cent for education of industry and the consumer; 50 per cent for stamp duty exemptions for first home buyers; and 35 per cent for a fidelity fund built up in the initial years to put further money back into the fund to ensure that the income there increases; and finally five per cent for administration.
I will not go into the setting up of the board, but industry representatives, government representatives, consumer representatives, a representative from ACOSS and
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