Stephen Parry (Tasmania, Liberal Party) Share this | Hansard source

I also rise on the matter that was raised in question time today and the answers given by Senator Minchin. Senator Carol Brown has highlighted the fact that Labor will introduce a minister for housing. I think before they do anything on that basis they should have a minister that will look after economic management, because that is how the housing situation in this country has become very strong. That is how our economy functions—we concentrate on economics, and that is the broad picture.

Turning to some of the minor detail, Senator Brown mentions interest rates. Interest rates fluctuate within bandwidths, and the interest rates under this government have fluctuated within an extremely low bandwidth. Under the Labor government, prior to this government taking office, interest rates fluctuated on a high bandwidth. I know because in 1990 I had a mortgage and mortgage rates went to just under 20 per cent. I still have a mortgage today, but mortgage rates are nowhere near that level. My mortgage rate is at a very affordable and manageable level. Also, from my family’s perspective, I have a son who recently married. They are saving for their first home. They have purchased a block of land. They have borrowed money to do so because interest rates are affordable to do that. That is a very important and significant factor: whilst interest rates move within bandwidths, they are relatively low. They have been a lot lower under this government than they have been in the past.

Senator Brown also blames the Prime Minister for blaming others. That is incorrect. The Prime Minister is not blaming the states; he is pointing out facts and stating the obvious. I quote the Reserve Bank Governor, who on 18 August this year said:

I think it is pretty apparent now that reluctance to release new land plus the new approach whereby the purchaser has to pay for all the services up front—the sewerage, the roads, the footpaths and all that sort of stuff—has enormously increased the price of the new, entry-level home. That is a supply-side issue, not a demand-side issue. I think there is a lot of evidence that, at the moment, those factors are becoming very important.

So it is not only the Prime Minister and this government but also people outside of this government who understand these issues who are saying that the state governments are a serious part of this issue. And the state governments are ensuring that housing affordability at the new entry level is too hard. It is just too difficult, because of those state costs.

That is not to mention stamp duty. We can look at stamp duty for forever and a day. State governments need to reduce stamp duty. If Labor were serious about low entry level into the housing market, the Labor Party would certainly be encouraging their counterparts at each state level to reduce and remove stamp duty. It is very important.

I will recap. Economic management: we have that, and the Labor Party need to pick up on economic management. Interest rates: we have low interest rates; within a bandwidth that fluctuates, they are still very low compared with the high, fluctuating bandwidths that the Labor Party had. It is not federal government issues that control the state government issues—and even, to a degree, local council issues—that affect the price of entry into new housing. These factors are all very important. I think the public of Australia understand that what we do, as good economic managers, is to ensure that housing affordability stays at the best possible price.

Then we come to first home buyers grants and subsidies. This government has been extremely proactive in introducing and maintaining these schemes. They enable people to have some offset when they first take up a mortgage. That is very important.

Housing affordability is a very important thing in this country. This government has a very serious approach to housing affordability. We can only ask that the state Labor governments follow the lead of the national government and reduce their charges to make it easier for those first-time entrants when they wish to move into their first home or, indeed, buy a block of land.

So I refute the allegations, made by Senator Carol Brown in the chamber a short while ago, that our interest rates are high; they are relatively low. And it is not only this government indicating that we have state governments to blame; outside experts are indicating the same. And I think we could find a long list of people who would also support that. (Time expired)