Page 1813 - Week 07 - Wednesday, 22 August 2007

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Wednesday, 22 August 2007

MR SPEAKER (Mr Berry) took the chair at 10.30 am and asked members to stand in silence and pray or reflect on their responsibilities to the people of the Australian Capital Territory.

Members—standard of dress

Statement by Speaker

MR SPEAKER: Members should be aware that my attire is the end result of a very successful fund-raising event for the rescue helicopter. It was the good work of Gary Humphries, a former member here, that wrong footed me and got me into this position.

Mr Smyth: Mr Speaker, can I point out to members that you are wearing that garb this morning simply in your desire to gain a 10 out of 10 for doing a perfect job.

Home loan market

DR FOSKEY (Molonglo) (10.33): I move:

That this Assembly:

(1) notes the:

(a) report “They want to take our house” by the Consumer Law Centre of the ACT (CARE);

(b) increase in non-bank lenders in the home loan market; and

(2) calls on the ACT Government to:

(a) implement recommendation seven of the CARE report; and

(b) Introduce legislation related to this recommendation by the end of 2007.

There has been a growing problem in the ACT that has received little attention in the housing debate until now. I refer to the increase in the number of non-bank lenders in the home loan market providing high-risk loans to consumers who have not been able to demonstrate their capacity to meet mortgage repayments. In the ACT, since 2002, the ACT Supreme Court has dealt with an increasing number of non-bank lenders seeking repossession of a property due to the borrower’s incapacity to make repayments. The problem has recently been compounded by increases in interest rates set by the Reserve Bank, and last week’s crash in the US subprime mortgage market. Unfortunately, despite the growth in this problem for low-income earners over the last three years, it has not received due attention until now, because now middle- to high-income earners are suddenly being affected as well.

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