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Legislative Assembly for the ACT: 2003 Week 4 Hansard (1 April) . . Page.. 1140 ..

MR CORBELL (continuing):

certainly a very high price, and one the government had not expected. However, the government is conscious of ensuring a reasonable supply in the territory. The government believes there is a good supply of land in the territory currently.

The total underlying demand for new dwellings in Canberra is currently running at about 2,300 dwellings per annum. The government has implemented a land release program that saw 3,051 dwellings provided for in 2001-02 and approximately 3,200 in 2002-03. Given that the overall underlying demand is 2,300 and that the government has released over 3,000 dwelling units in each year since its election, I think the government is responding responsibly to the overall demand for new dwellings.

I use the term "dwelling"because we are not simply talking about blocks of raw land. We are talking about redevelopment sites as well and a growing market for town house and apartment-style accommodation. We intend to continue the small annual oversupply into the 2003-04 financial year, with approximately 3,000 dwellings to be accommodated for in the land release program.

The industry needs to continue to behave rationally. Historically, the ACT building industry has been very slow to react to changes in market conditions. They tend to buy land and sell at high prices until the market hits the wall. Then there is too much land that builders cannot on-sell to clients, because the market has crashed. The government does not expect the market to crash. But everyone is expecting moderation in the market in the coming 12 to 18 months, especially if there are further negative changes in interest rates.

Whilst these matters are difficult to predict, the government's response has been entirely appropriate. Underlying annual demand in the territory is assessed at 2,300 dwelling, and the government has supplied over 3,000 in each of the two financial years it has been responsible for. I would urge the industry to ensure that the judgments they make are focused on the medium to longer term as well as the short term.

MRS DUNNE: My supplementary question is: Minister, are you satisfied with the situation in which you are forced to raise money at the expense of home ownership to prop up Mr Quinlan's budget, which we know is looking pretty ordinary?

MR CORBELL: I am satisfied that the government is undertaking a responsible land release program. I am satisfied that the government is making more land available than you ever did when you were in government. I refer members to the Chronicle of the week before last. The executive director of the Master Builders Association, Mr Dawes, said he welcomed the government's ready release program and welcomed the fact that the government now had land supply issues under control. He is a prominent and very important voice of industry.

We pay attention to what the Master Builders Association and the Housing Industry Association say. We do not always agree with them, but we certainly pay attention to them. Those comments are endorsement of the government's responsible approach to land release.

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