Page 1915 - Week 09 - Thursday, 19 October 1989

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Stefaniak - unfortunately, he is not here to be reminded but, should he take the trouble to read Hansard later on, this reminder might be helpful - that he should not look at bits of programs or initiatives without seeing them in context. I refer to his comments about unsupported young people. This Government is about providing a whole range of services to assist the whole range of needs in the community. We are making careful decisions, and we are committed to working together across our portfolios.

Let me take another example of the care we are taking to ensure that programs are carefully considered. Mrs Grassby announced three measures which are interconnected. They were the rental bond trust within the housing portfolio, the fidelity guarantee fund as part of Mr Whalan's responsibilities, and stamp duty exemptions which are the responsibility of the Treasurer.

Earlier in the year, the Liberal Party said it would introduce a fidelity guarantee fund which would provide a source of funds for stamp duty concessions. What was not made clear at the time the Liberal Opposition floated this proposal was that the funds would largely come from the bond money of people renting in the private market. The Government could not accept that lower income people who are on the waiting list for Housing Trust accommodation and renting in the private market should subsidise the scheme. But I must say that I welcome Mr Collaery's opposition to this type of cross-subsidisation, as he described it. It was the interest earned on the bonds of these people that would have financed the stamp duty concessions for higher income people purchasing their first home.

This proposal was one of the most regressive measures that could have been introduced. It would simply not be fair for lower income renters to subsidise higher income first home buyers. The measures announced in the housing policy review have no such regressive or inequitable features - and, of course, I am pleased that the Residents Rally party appears to have the same view as the Labor Government in this respect.

The income generated from rental bonds will largely be returned as housing assistance to those people in financial difficulties renting in the private market. The funds generated from the Government's fidelity guarantee fund will be able to be used for a wider range of housing related purposes.

The Government decided that the whole of the ACT community should contribute towards home ownership and the stamp duty exemptions. For this reason the stamp duty exemptions announced by the Government will result in a lower level of revenue from stamp duty.

The Government's proposal for a rental bond trust, a fidelity guarantee fund and stamp duty exemption are therefore to be financed in a much fairer way than the


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