Page 2658 - Week 08 - Thursday, 24 August 2006
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DR FOSKEY (Molonglo) (4.17): It is wonderful to have the words of John Howard in the transcript of our debate today. I believe that his statements totally bypass the complexity of issues around affordable housing, but we will not waste our time on him today as we have more important matters to consider.
The home loan portfolio is a small item but, in light of the affordable housing crisis we are facing, it is worth mentioning the recommendation made by ACT Shelter in relation to last year’s budget documents that the ACT home loans portfolio be reviewed annually rather than biennially and that available funds be released for public housing. That has happened in the past.
In support of this recommendation, ACT Shelter cited a KPMG recommendation that the performance of the home loan portfolio be closely monitored and indicated that there is potential for there to be $2 million to $5 million available annually for social housing stock. In the 2005-06 budget the increase in net assets was expected to be greater than $2.5 million and in the 2006-07 budget it is expected to be greater than $5million.
I believe that the ACT government still intends to review the portfolio biennially, but I would encourage it to give serious consideration to this proposal and to maintain the commitment to use those funds to grow the supply of social housing.
MR STANHOPE (Ginninderra—Chief Minister, Treasurer, Minister for Business and Economic Development, Minister for Indigenous Affairs and Minister for the Arts) (4.19): I will be brief in my response. It is certainly reasonable in the context of this item for one to draw attention to issues about home loan affordability, the availability of public housing, supported accommodation and the needs of those under some particular stress. Mr Mulcahy conjured up the visage of the Prime Minister in the context of a deliberate decision by the commonwealth government to deflect attention to the states and territories from its role in the second and what is about to be the third interest rate rise and, of course, its campaign promises prior to the last federal election in relation to interest rates.
I want to respond to the suggestion that all of a sudden issues around housing affordability are the responsibility of the states and territories and all their fault. The issue most in the minds of young home buyers and those seeking to enter the market today is interest rates. Let’s not deflect attention from the commonwealth’s role in relation to that and the importance of interest rates to affordability and to people’s inclination to enter the housing market, as opposed to the so-called complicity of states and territories in relation to land supply.
The point needs to be made that in the territory at the moment there is in the hands of our developers, of our industry, land capable of producing 6,000 units of accommodation. That is what is currently out there in the market. The minister has responded in the last week to a jump or a spike in demand by releasing, I think, 300-plus blocks over and above what was earlier anticipated. To suggest that—
Mr Mulcahy: Why are they all moving over the border?
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