Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

I am seeking advice from an adviser on that matter. He is just coming into the chamber, Senator Ludlam. While we are waiting I want to highlight in a general sense this issue of housing which we are debating, which is obviously a key component of the Nation Building and Jobs Plan. I think it is important to highlight that it is proposed that some $6.6 billion be spent on some 20,000 social and Defence homes. This is an important element of this package. The moneys are predominantly to be spent in 2009-10—some $4.3 billion—and then in 2010-11 there will be $1.794 billion spent.

Of course we know that, when an economy weakens, the housing and construction sector is one of those sectors that declines most rapidly. Around the world we have seen what has been known as a housing bubble, in countries such as the US and the UK, and the collapse of that housing bubble. We have not seen decline in commercial property values to that extent in Australia, but there has been a plateauing of values and a decline in some areas—it does vary from area to area. So it is very important to ensure in this stimulus package that we are able to assist the construction and housing sector when this period of weakening starts to accelerate. That is a very important part of the package. It is only one element of the package, but it is a very important part.

On the issue which Senator Ludlam has raised and which we were discussing yesterday, there is a coordinator-general. We outlined and discussed the structure for compliance—I think that would be the best way of describing it—and the reporting requirements to COAG, which is obviously the Commonwealth and all of the states and territories. I can indicate that I would expect that COAG would make publicly available the material on the reporting. We would expect them to make that public. I cannot pre-empt the decision of COAG, but we would expect that that would be made public. Obviously I cannot pre-empt the decision of COAG because COAG is yet to meet and receive its report on this aspect of the stimulus package.

There are two other areas of scrutiny. It will be scrutinised through the Senate estimates process and, because it obviously involves Commonwealth expenditure, at some point in time I am sure the Auditor-General will be carrying out work in this area. Again, it is obviously too early and I am not aware of any commitment by the Auditor-General to date, but, given the size, the extent and the newness of the program, and the oversight, I would certainly anticipate that the Auditor-General will examine this once the first reports are available. So that is the process that I anticipate would be provided to oversight what is occurring in this area.

I do think it is important, and I think you are right to highlight it, Senator Ludlam, because, as the Prime Minister has indicated, we want this money spent effectively and in accordance with the criteria. We do not want the money being used to replace the existing commitments of the states going forward. The Prime Minister has made it very clear publicly that this oversight will be rigorous and it will occur for both Labor and Liberal state and territory governments. I certainly have no doubt that the premiers and territory leaders understand that. It was spelt out very clearly to them at the meeting the Prime Minister held last week, where he went through the stimulus package with them. They have accepted that that is their responsibility—not just in this area but in all areas of the package. These are additional moneys over and above existing state commitments and we do not want to see substitution—that would be inappropriate and undermine the very extensive, if it were to occur, impact of this stimulus package. So, Senator Ludlam, I do not think you should be in any doubt about the Prime Minister’s determination on this matter, regardless of the political colour of the state or territory government.