Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Cormann. Assistant Treasurer Sukkar has said about the Home Builder scheme: 'Our view has been that this is a jobs program. It is going to support half a million jobs in the residential construction industry.' Does the Prime Minister, Mr Morrison, stand by these numbers?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

HomeBuilder, of course, is a very important program that recognises that the residential construction sector is of critical importance to the Australian economy, which is why a number of state governments, including the state Labor government in my home state of Western Australia, have taken certain measures to support that sector. Pre-COVID, the residential construction sector forecast commencements of 171,000 compared to a forecast of 11,000 post-COVID commencements. HomeBuilder is expected to boost residential construction activity, directly supporting 140,000 tradies and a further up to one million jobs indirectly in the residential construction sector. These are, of course, estimates and, as always with estimates, will monitor the implementation of this very important scheme. HomeBuilder is primarily about the new construction of dwellings, with Treasury expecting around 20,000 new dwellings to be supported by the policy compared to around 7,000 substantial renovations. So far over 22,500 have registered their interest.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Gallacher, a supplementary question?

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Analysis by Credit Suisse has described the HomeBuilder program as 'disappointingly small'. The research note goes on to say: 'We doubt that the incentives delivered are large enough nor the eligibility criteria wide enough to really move the needle.' Why couldn't the government design a program that was capable of moving the needle in the construction sector?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Clearly, we have made judgements based on what we believe is appropriate in the circumstances. Everybody will have their own view. Some people would like us to spend more; others would like us to spend less. We made a judgement about what we believe is appropriate in the circumstances but of course everybody is entitled to their own views.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Gallacher, a final supplementary question.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

The president of the Grattan Institute described the Prime Minister's announcement as: 'Classic retail politics but lousy economics.' Australia has entered its first recession in 29 years. Is now the right time for the Prime Minister to be indulging in his passion for spin over substance?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

We on this side completely disagree with the assertion made by the Grattan Institute but we are used to the fact whatever we do there will be commentary from all sides, including the sorts of commentary that Senator Gallacher has just read out. We will continue to make judgements based on what we believe is in the best interests of working families around Australia, including what is in the best interests of those Australians working in the residential construction sector.