Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to reports that 50 Victorians every week are being hit by repossession notices because they cannot pay their mortgages. Considering that business confidence has slumped to its lowest level since the terrorist attacks of 11 September 2001, I ask the Prime Minister how Australian families can be confident that he and his Treasurer will keep our economy strong.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the Leader of the Opposition for his question. I have seen those figures and they are disturbing for all of us. They are disturbing to working families right across Australia, who are under financial pressure. They are disturbing because of the burden which those working families have had to bear as a result of 11 interest rate rises in a row. As a result of that, when you combine it with the cost pressures on the family budget—the cost of groceries, the cost of petrol, the cost of all those other things which everyone has to reconcile each week to make sure that they can pay the bills—it is getting increasingly tough out there.

The challenge for us lies at two levels. What are we going to do in terms of ensuring that we keep maximum downward pressure on inflation in order to ensure that we therefore have maximum downward pressure on interest rates? That, as I said at the beginning of this year, is the core challenge which the government faces—the fight against inflation. That is why every element of the government’s policy arsenal is deployed in that direction. It goes to what we do in terms of public demand through the budget; it goes to how we encourage private savings; it goes to what we do on the supply side of the economy, too, in skills and infrastructure and workforce participation.

Then you go specifically to housing itself. What can we as the government of Australia do to assist those who are out there in the housing market or wanting to be in the housing market in these difficult circumstances in which Australian families find themselves? The first measure we have embraced is to establish a federal department of housing which has its own minister.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Hockey interjecting

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

To take the interjection from the Manager of Opposition Business, it is important, and it is in direct response to the representations made to us by practically every peak industry body in this sector, including the Housing Industry Association, with whom we have consulted closely on this and related housing policy matters.

The second thing you can do, apart from bringing direct government ministerial focus on the housing challenge, is this: when it comes to our young people trying to enter the housing market for the first time, what can we do in practical terms to assist? That is why the Treasurer, together with the housing minister, has brought forward the submission for First Home Saver Accounts, and we are proud and pleased as a government to have that as an early measure being put forward by the government into the community to assist those young working families who have no ability to get into the market or to do so with any degree of financial comfort at this stage.

We have other elements of housing policy which we put out prior to the election and we will be honouring each element of those housing policy commitments. We want to ensure that the great Australian dream of young people having access to their own home remains alive and well. Hence why we have implemented these measures.

Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order. The question is about families who have mortgages today who are losing their homes. Isn’t the truth of it that the Prime Minister has no solution for increases in interest rates?

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

I suggest to the Leader of the Opposition that the first part of the point of order was within standing orders but he cannot then digress into a discussion of other matters.