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Legislative Assembly for the ACT: 1997 Week 2 Hansard (27 February) . . Page.. 558 ..

MR STEFANIAK: Ms Reilly, the Government has a number of reports in relation to housing assistance programs. The report you refer to is, in fact, a draft report which I understand has not been finalised. I do not think it would be appropriate to table something that is a draft. You are well aware, Ms Reilly, of what has occurred in relation to the home loans scheme. You are probably also well aware that Housing currently administers about 4,000 loans under about four different loan schemes - not including Kick Start - which date back quite some time. A number of documents - the latest one being the Commonwealth Bank report, which pointed up some serious problems in home lending schemes - led the Government to its decision at the end of January, when it extended the Kick Start scheme, to discontinue one of the home loan schemes. Ms Reilly, in relation to those particular schemes, I would also point out to you - as you are probably well aware, I would hope - that at present housing affordability is really at an all-time high for people in Canberra. I would say we have the best market for purchasers for some 10 years.

Apart from schemes like Kick Start, there are any number of schemes in the private sector which people on low to medium incomes have a chance of accessing now. There are any number of houses, both new and existing, available for people for about $100,000 or even less. Prices on those homes at the lower end of the market are probably $20,000 or $30,000 down on what they might have been three years ago. It is a great time for people to buy. All those things would be taken into account by Housing, including a number of internal reports and the Commonwealth Bank report, which is the ultimate report and probably the one you should look at - I would be happy to locate a copy of that and get it to you - in relation to home lending schemes.

I would stress, Ms Reilly, that times change. Whilst at present it is a great market to buy a house in, the economy might change. A number of things might change. The Government is always mindful of that, and in future we might well be looking at additional options for home lending schemes when the situation changes. At present, with housing affordability at an all-time high, and with the various private schemes and Kick Start, I think it is a great time for people to get into home ownership. Certainly, we are actively encouraging people to do so.

MS REILLY: I ask a supplementary question. Can you confirm that you are refusing to table this report because the findings show benefits for home purchasers, profits for the Government and accessibility to home loans, unlike this Kick Start scheme, which is beneficial for only one lending institution and under which, going on reports today, it is very difficult for most people to access any sorts of loans?

MR STEFANIAK: The particular draft report you refer to was to be a report on a number of things. It has not been finalised, but certainly it was favourable in its comments on various government home lending schemes. The Commonwealth Bank report, which is finalised, reviewed the whole home loans program. It was a technical report to advise the Government of the financial risks connected with the existing mortgage portfolio. The Government looked at everything, including the Commonwealth Bank report. We looked at current home purchase affordability and the favourable housing market and, taking into account all the factors, we decided to continue with the temporary cessation of direct home lending which we announced at about the beginning of June last year.

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