Kim Carr (Victoria, Australian Labor Party, Shadow Minister for Housing and Urban Development) Share this | Hansard source

Mr President, I ask a supplementary question. I thank the minister for his answer. Given his reference to the increase in the number of impaired loans, I would ask him if he is aware that Standard and Poor’s mortgage arrears statistics for 30 June 2006 show an increase in serious arrears over the last year? Is the minister further aware that Standard and Poor’s attribute this trend to the increase in low doc loans and the fact that borrowers are generally finding it more difficult to meet their commitments once they start falling behind in payments? Can the minister explain how much of the increase in arrears and repossessions is due to the government’s failure to properly regulate shonky home loan providers and how much is due to the broken promise to keep interest rates at record lows?