John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Hansard source

We are witnessing the beginnings of a housing crisis in sections of the United States. Those who sit opposite would be well to treat this issue more seriously than they are, because what is occurring in the United States does have the potential to cast a long shadow around the world. It does have the potential to have unintended consequences on credit levels in this country, and I think that at a time like this it behoves everybody to choose their language very carefully. It behoves those who sit opposite not to wish for a crisis that does not exist. I think that a lot of Australians who are wanting to buy their first home are finding it very difficult to do so. The reason they are finding it difficult to do so is that the cost of buying a first home has risen out of proportion to the increase in their wages. That is the fundamental reason why we have got a problem at the present time. Whereas with most other things that people buy the cost of them has not risen out of proportion to the rise in incomes, in the case of housing the cost of buying the first home has risen out of proportion to the increase in incomes. Therefore, in addressing this matter, it is important that we do not aggravate that gap, it is important that we do not widen that gap, and some of the remedies that are simply going to further push up the price of housing are not adequate responses. We need to tackle the supply side, and that is why the Treasurer is focused on having an audit of land.

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