Chris Hayes (Werriwa, Australian Labor Party) Share this | Link to this | Hansard source

Has the Prime Minister seen reports in the Sun-Herald on 10 September on the sharp increase in mortgage repossessions in New South Wales since interest rates started to climb in 2002? Did the Prime Minister see the comments from accountant Anthony Bell, who said, ‘Interest rate rises have made loan service ability harder and harder’? When will the Prime Minister finally admit that it is his seven back-to-back interest rate hikes that are causing some families to lose their homes?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I have seen the reports in the weekend press, and my understanding of those figures is that they do not relate solely to dwellings; they also include actions to repossess properties involved commercially, and it is not possible on the figures available in the media to know precisely how many of those relate to homes. He asks me a question relating to interest rates. It is true that interest rates rose by 0.25 per cent recently, and there have been three interest rate rises in the last 18 months. I acknowledge that. That is a statement of fact. The other statement of fact is—

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

You said, ‘Go forth and borrow!’

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The member for Hunter!

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue) Share this | Link to this | Hansard source

‘Go forth and borrow!’

David Hawker (Speaker) Share this | Link to this | Hansard source

The member for Hunter is warned!

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

under the former government, the housing interest rate averaged 12¾ per cent. It peaked at 17 per cent—17 per cent! Can you imagine how many repossessions there would be now were it 17 per cent, Mr Speaker? Let me assure the member for Werriwa that any government would be concerned about any repossessions, but the proposition that housing affordability now is a function of the interest rate rises that have occurred since the last election is false. I notice that in this morning’s press there are a few things attributed to an interview given by the retiring Governor of the Reserve Bank. He had something to say about housing affordability when he appeared before the House of Representatives standing committee on 18 August. He was asked a question about houses being less affordable.—

Sharon Bird (Cunningham, Australian Labor Party) Share this | Link to this | Hansard source

Ms Bird interjecting

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The member for Cunningham!

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

In the case of the Manager of Opposition Business, who makes a point of order, I would have thought a question about repossession action does relate to housing affordability. This is what he had to say about houses being less affordable. This could be a very good answer for the member for Werriwa:

Mr Macfarlane—They are. That is caused more than 100 per cent by the fact that house prices have gone up, not because of interest rates going up. Interest rates are lower than they were 10 years ago and are obviously lower than they were 15 years ago.

Dr EMERSON—

that is the member for Rankin—

But affordability is no different?

Mr Macfarlane—The story is all about house prices. The story is not about interest rates.

End of story.