Chris Bowen (Prospect, Australian Labor Party) Share this | Hansard source

Yesterday in question time we heard the revelation that repossession orders in New South Wales have reached record levels. They are 50 per cent higher than they were in 1991, and they are even higher than they were in 1982, when interest rates hit 21 per cent under Treasurer Howard. In fact, repossession rates are higher now than they have been at any time in our history. During 2005, 4,873 repossession orders were issued in New South Wales—that is 59 per cent higher than in 2004—and there has been a nine per cent increase in the first six months of this year. When did these rates of repossessions start to rise? In 2002, when interest rates under this government started to rise.

Yesterday the Prime Minister was asked about this by our colleague the honourable member for Banks. He gave a long and rambling answer that was Castro-like in its length. He came back to add more to it, but he completely—and I suspect rather conveniently—missed the point. What was his answer to the problem of the increasing number of repossessions—the increasing number of people having their homes repossessed? When in doubt blame the states. ‘I have an answer,’ he said. ‘Release more land; that will drive house prices down.’ And to a small degree I do concede that he has a point. Releasing more land would create a small amount of downward pressure on land prices. But what would reducing land prices do to struggling families in Western Sydney struggling with higher mortgage repayments, higher petrol costs and high debts that are out of control? What that would do is beyond me.

Families in Western Sydney, in the outer areas of Melbourne and Brisbane and in other areas have gone into massive debt, facing increased mortgage repayments and higher interest rates and dealing with rising petrol prices, but the Prime Minister has a plan. Is it to put downward pressure on interest rates?

See this speech in context