Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

Again, Senator Hutchins and Senator Carr ought to talk if they want to get their lines together on housing affordability. We have Senator Carr complaining because housing is too expensive and Senator Hutchins complaining because house prices are going down. This is just typical of the incompetence of the Labor Party: one arm does not talk to the other arm. It is a completely hopeless approach to economic policy. As I have said repeatedly in this place, the fact is that when we came into office interest rates were 10.5 per cent on the average variable home loan. They are now, even after this increase of 25 basis points, 8.05 per cent, saving Australians hundreds of dollars a month on the average mortgage of $220,000.

Australians do understand that, under the coalition, interest rates are lower than they were under the Labor government or would be if that mob over there were ever elected to office, with their proposals to recentralise wage fixation in this country and to spend all the earnings of the Future Fund, to let go of the fiscal restraint that this government has exercised and to follow the path of the state Labor governments, which are now moving into deficit and putting pressure on interest rates, in their own way, by going into the markets to borrow funds. I have said to Senator Carr before that he ought to talk to his own state Labor governments if he is concerned about affordability.

I point out to Senator Carr that the land release policies and stamp duties policies of state Labor governments have a very big impact on the cost of housing. In 1973 land represented 33 per cent of the price of a typical house and land package. In 2006 it represents 78 per cent of a typical house and land package. Stamp duties on land transfer in Australia represent 1.6 per cent of GDP compared to an OECD average of 0.7 per cent. Senator Carr’s concern for the affordability of housing is admirable. If he is concerned about it, he ought to talk to his own state Labor governments.