George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Hansard source

Thank you, Senator Wong, for giving me the opportunity to address that issue. I am aware of Ms O'Dwyer's remarks during the course of an interview this morning. What Senator Wong has not referred to, and what I would like to acquaint the Senate with, is a statement subsequently issued by Ms O'Dwyer, in which she says:

I would like to explain my comments on Sunrise this morning about Labor’s reckless negative gearing policy.

The point I was making is that under Labor’s policy there will be increased demand for new property, pushing up prices for new property.

It is clear from Labor’s ill-considered policy that existing house prices will decline.

If opposition senators cared to look at the context of the questions Ms O'Dwyer was asked on Sunrise, it is as clear as day that Ms O'Dwyer was referring to new housing. She made that observation in the context of that reference to new housing. It is equally clear, and there has never been any doubt—you will not find an economist in this country who will gainsay the fact—that overall, as a result of Labor's negative gearing policy, the value of existing houses will fall sharply—as one would expect, if one takes up to one-third of investment out of the market.