Maria Vamvakinou (Calwell, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Housing and the Status of Women. Will the minister inform the House of what the government is doing to improve housing affordability?

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

Mr Speaker, may I add my congratulations to those of others on your elevation to the speakership. I want to thank the member for Calwell for her question. This question has enormous significance in her electorate, where mortgage stress has increased by 82 per cent between 2001 and 2006 and where almost half of households are in rental stress. Indeed, Calwell has the highest rate of rental stress of any electorate in Victoria. Of course, it is not the Lone Ranger in terms of nonaffordability. Under the previous government we saw rent stress go up, we saw mortgage stress go up, we saw homelessness go up, we saw home repossessions go up, we saw housing affordability go down and we saw first homeownership go down.

Wilson Tuckey (O'Connor, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. The minister was asked by a member of her own side to explain to the House—and I am delighted to hear it—how they are going to fix the problem, not tell us what the problem is. Would you please proceed to answer your own member’s question?

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The minister knows that she is required to be relevant to the question on housing affordability.

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

I think it is important to understand the very difficult context that we are working in.

Wilson Tuckey (O'Connor, Liberal Party) Share this | Link to this | Hansard source

Mr Tuckey interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The honourable member for O’Connor is warned!

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

In 1996 the average home cost four times the average annual wage; in 2007 the average home cost seven years worth of the average annual wage. Housing affordability is at its worst point in Australian history. Indeed, Australians now spend about $30 out of every $100 on their mortgage repayments.

Wilson Tuckey (O'Connor, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, I rise on the same point of order. The member is sticking to her script. She was asked by her own side to tell us how they are going to fix the problem.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The honourable member has overstepped the mark. He will absent himself from the chamber for one hour under standing order 94(a).

The member for O’Connor then left the chamber.

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

This is a problem that the previous government were in denial about for a decade; they still do not admit that housing affordability is a problem in this country. I am painting a picture for them to explain that housing affordability is at its worst ever. Today, home buyers spend $30 out of every $100 they earn repaying their mortgage. In 1996 it was less than $18 out of every $100.

Opposition Members:

Opposition members interjecting—

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

It is interesting that the opposition should ask how we are going to fix this, because in the 10 years of their government there was not a housing minister nor a housing policy. They have got a shadow housing minister now, and I welcome her to the position. Indeed, it is a very important position. I hope that she will be able to convince her colleagues that this is an issue for this country.

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The minister will resume her seat. I have a great deal of patience, and question time can go on for as long as it likes, but responses will be heard in silence.

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

It is harder to find a place to rent and it is more expensive when you do find a place. Many young Australians have given up on their dream of home ownership. Before the last election, the Labor Party came up with a number of very important policies to address these issues. Indeed, at its first meeting, the Council of Australian Governments made it a priority for the states and the Commonwealth to work together, and we are, right now, implementing those election policies. The National Rental Affordability Scheme includes a payment from the Commonwealth and a payment from the states to draw in private sector investment. There will be 50,000 new, affordable private rental properties.

Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Change, Environment and Urban Water) Share this | Link to this | Hansard source

Mr Hunt interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Flinders!

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

Our Housing Affordability Fund is a $½ billion program that will address some of the high infrastructure charges that we see around the country and some of the planning delays that we have.

Tony Smith (Casey, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Anthony Smith interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Casey will cease interjecting!

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

Our policy is to release excess Commonwealth land. The states have been writing to the Commonwealth about some of these parcels of Commonwealth land for years, asking, ‘Please can we buy this land?’ They have not even had the courtesy of a reply from the previous government. We also have our National Housing Supply Research Council, our $150 million policy to build more homes for the homeless and our First Home Saver Accounts.

The Treasurer and I last week released our discussion paper on the First Home Saver Accounts. These new accounts will help hundreds of thousands of young Australians to save a deposit for their first home. We know how important savings are. The previous government obviously had no interest in increasing national savings. We know how important it is to save a deposit for the first home. The total proportion borrowed to buy the home will lessen, mortgage repayments will lessen and mortgage insurance will lessen. First Home Saver Accounts will see the government invest $850 million over their first four years of operation to help first home buyers save a bigger deposit for their first home. I understand better than anyone that housing affordability is a complex problem. There is no silver bullet solution.

Opposition Members:

Opposition members interjecting—

Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Link to this | Hansard source

I said it a hundred times before the election. We announced before the election and we have delivered on our housing affordability plans for this nation. As the first housing minister in a decade, I am pleased to say that with these policies in operation we will begin to make a dent on housing affordability for first home buyers, for renters and for people who rely on community and public housing.