Glenn Sterle (WA, Australian Labor Party) Share this | Hansard source

I will, Mr Deputy President. I rise to take note of answers to questions today. I would like to add that 10 years ago the average mortgage repayment-to-income ratio for the typical first home buyer was 17.9 per cent. Sadly, today that figure is 30.7 per cent. Ten years ago the average home cost about four times the average annual wage. A lot of senators in this chamber would know that that figure is a heck of a lot more now than it was then. Today it costs no less than seven times the annual wage. The data from the 2006 census paints an alarming picture of the number of households losing over 30 per cent of their income in rent and mortgage payments. I note that 519,764 households in Australia, or 36.7 per cent of households that rent, are now losing over 30 per cent of their household income to rental payments, and over 500,000 are losing over 30 per cent of their household income to mortgage payments. Over one million Australian households are now losing over 30 per cent of their household income to either mortgage or rental payments. I will say that one more time so those honourable senators opposite can take it in: over one million Australians households.

But last week the Treasurer denied there was a housing affordability crisis. Last week the Treasurer was interviewed on Sky News. He was asked by the interviewer: ‘So, is there a housing affordability crisis, Treasurer?’ The Treasurer answered: ‘No, the crisis is when the market collapses. That is when you have a crisis.’ So what does that tell us about the Treasurer and the crisis in housing affordability? It tells us quite simply that, like his good friend the Prime Minister, Mr Howard, he is no less than in denial. The Treasurer is so distressed about the lack of dinner invites to the Lodge that he has completely lost the plot. I say that without any fear of contradiction.

But I guess at least one thing the Treasurer has to feel happy about is that he may very well believe he was a far greater Treasurer than his good mate—I use the term ‘good mate’ loosely—who was an even worse Treasurer. We hear harping from that side—from some of the senators from Queensland—all the time during question time. They cannot wait to talk about interest rates from 10 years ago. But they fail to acknowledge that under Treasurer Howard, from 1977 to 1983, interest rates were at 22 per cent. A lot of people sit back and think, ‘Well, 22 per cent of a $50,000 home wasn’t a heck of a lot.’ I can tell you now, as someone who was paying off a home back then, Mr Deputy President, as I know you would have been too, it was a heck of a lot. And guess what? We have a common denominator some 20 years later. Now we have a housing affordability crisis and over a million homes are losing 30 per cent of their income to rental or mortgage repayments there is a common denominator—it is Mr Howard again. He has moved from Treasurer to Prime Minister, but we have another housing affordability crisis. So senators opposite can harp on as much as they like. They are in denial, as their Treasurer is in denial.

I challenge senators opposite: get off your backsides and get out to those areas where youngsters are trying to afford to buy homes. Don’t bring us the blame game—‘It’s all the state’s fault; it’s got nothing to do with us.’ This Prime Minister could not wait to go out to the people of Australia three years ago and say that he would keep interest rates at record lows. He took all the credit. It was all about Mr Howard. As soon as interest rates start going up, does he stand up there and say, ‘It is all because of me’? No. He ducks, he dives, he hides—he blames everyone he can. What a pathetic effort. You cannot stick your hand up when things are going good and say, ‘It’s all me,’ but when they start going crook it is everybody else’s fault.

It is no wonder that Mr Costello, the Treasurer, wants to take him out. He made it very clear. I think the words quoted in the Bulletin were: ‘He can’t win. I can. We can win, but we can’t with him.’ Isn’t that absolutely wonderful: three months out from an election and the Treasurer is at it again. Oh my gosh! What a rabble on that side. You may have fooled the people last time but you won’t fool them— (Time expired)