Martin Ferguson (Batman, Australian Labor Party, Shadow Minister for Transport, Roads and Tourism) Share this | Hansard source

I welcome the opportunity to address the very important issue of housing affordability. In doing so, I also want to say that this debate is not about housing affordability; it is about the New South Wales state election. It is about the Howard government seeking to shift its responsibilities onto someone else. It is not about defending the Australian government or state and territory governments. It is about having a real debate about ending the blame game.

Let us go to the issue of housing affordability because it is about time we all accepted that there is a national crisis. The reality is that the average household cannot afford to buy the average home. A report released today by the Residential Development Council offers a bleak picture for Australia’s youth, with only one property expert in 14 believing that members of generation Y will be able to buy their own home. A survey by the council showed that only seven per cent of industry insiders believe that generation Y—those born between 1978 and 1998—would be able to overcome surging house prices and land shortages to buy their own family home. The survey stated:

More than 40 per cent believed members of Generation Y would be forced to continue living with their parents before being forced to rent or live in share accommodation.

The truth is that Australia now has the least affordable housing of six developed countries surveyed by US consultants Demographia. This reality does not just spell economic problems in a cornerstone of our national economy. It also drives a spear into a long-held Australian dream: homeownership, which is entrenched in our national culture—and so it ought to be. We are now experiencing the worst housing affordability in at least a quarter of a century. This is coupled with low vacancy rates and soaring rents which, combined, lead to a crisis that could undermine society’s foundations. If people cannot afford to buy a home and there is nowhere for them to rent, where are they going to go and what are they going to do? The issue of homelessness becomes an even bigger crisis—something that was debated in the last week that parliament met.

The Howard government should be told that there are no quick fixes. It is no longer acceptable to blame state and territory governments. The Howard government’s theory is that wholesale land releases would increase supply to a point that would pull down demand. If only it were so easy. Such ill-thought out solutions ignore the fact that housing affordability, particularly in New South Wales, is a complex combination of costs, supply and demand, inflation pressure and infrastructure services. It is also related to a change in expectations. What the previous generation thought was appropriate when purchasing a home has changed dramatically. People expect all the available services from the day they move into a particular subdivision, and this considerably increases the cost of providing homes at an affordable price. More often than not, because of the failure of the Australian government to invest in infrastructure, the responsibility for providing the infrastructure which is expected by householders falls to state, territory and local governments.

Where is the Howard government in the debate about urbanisation? Where is the Howard government in the debate about providing infrastructure as the cities sprawl to the outer suburbs of capital cities such as Brisbane, Sydney and Melbourne? As usual, it is missing in action. It just says, ‘That’s not our responsibility; it is the responsibility of state governments.’ It is about time we said to the Australian government: end the blame game; show some leadership; sit down and try to work out how to work with state and territory governments on this complex issue. There is no quick fix. It is about all of us pulling our weight. It is about us working with the private sector and public developers to increase housing affordability in Australia. Urban development has been ignored by the Howard government for far too long. It is now time to act. The Labor Party is going to act with practical policies in the lead-up to the next election. We are about ending the blame game. The Howard government is about continuing to do nothing while saying that it is someone else’s responsibility. Front up to your responsibilities, Mr Prime Minister. Don’t continue to make speeches while doing nothing for ordinary people. (Time expired)

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