House debates Questions without Notice
Interest Rates
Daryl Melham Banks, Australian Labor Party
2:22 pm
My question is to the Prime Minister. Is the Prime Minister aware of figures from the Supreme Court of New South Wales that show mortgage repossessions have more than doubled since 2002 and are now 50 per cent above levels recorded in 1991? Prime Minister, isn’t it the case that your seven back-to-back interest rate rises are sending thousands of families to the wall?
John Howard Bennelong, Liberal Party, Prime Minister
The short answer to the question is no. The longer answer, because I have considerable regard and affection for the member for Banks—
Unidentified interjection - Hansard doesn't record who said this
Honourable Members:
John Howard Bennelong, Liberal Party, Prime Minister
I do; the member for Banks has many qualities, and I treat any question he asks very seriously, as I do questions asked by the gentleman who sits immediately in front of him on the other side.
John Howard Bennelong, Liberal Party, Prime Minister
Immediately in front of him, I say to the member for Blaxland—don’t get excited. I am quite interested in Sydney house prices, as I know the member for Banks is, and I have done a little research.
Julia Gillard Lalor, Australian Labor Party, Shadow Minister for Health and Manager of Opposition Business in the House
Thinking about retiring? Secret retirement plans?
John Howard Bennelong, Liberal Party, Prime Minister
No; I am enjoying it. I have done a little bit of research—
Joel Fitzgibbon Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue
Mr Fitzgibbon interjecting
John Howard Bennelong, Liberal Party, Prime Minister
and do you know what that research tells me? The research tells me that in real dollars in Sydney between 1973 and 2003—and, I say to the member for Banks, both of us remember 1973; it was not a very good year for the Australian economy. Gough Whitlam was seeing to that.
Anthony Albanese Grayndler, Australian Labor Party, Deputy Manager of Opposition Business in the House
Mr Speaker, I rise on a point of order. This is a question about the doubling of repossessions since 2002.
David Hawker Speaker
The member for Grayndler will come to his point of order.
Anthony Albanese Grayndler, Australian Labor Party, Deputy Manager of Opposition Business in the House
It is relevance.
Anthony Albanese Grayndler, Australian Labor Party, Deputy Manager of Opposition Business in the House
2002 is 29 years in advance of 1973 or whatever year it is—
David Hawker Speaker
The member for Grayndler will resume his seat or I will deal with him.
John Howard Bennelong, Liberal Party, Prime Minister
Between 1973 and 2003 housing affordability declined because over that period of time the cost of land rose by 700 per cent. The member for Banks has asked a question about a very important issue, and that is housing affordability for young Australians. I am glad he asked it because the reason, more than anything else, why it is hard for young people to buy their first home is that the price of land in outer metropolitan areas of Australia has gone up. In Sydney it has gone up by 700 per cent.
Unidentified interjection - Hansard doesn't record who said this
Opposition Members:
Opposition members interjecting—
Roger Price Chifley, Australian Labor Party
Mr Speaker, I rise on a point of order. The question was about mortgage repossessions.
Warren Truss Wide Bay, National Party, Minister for Transport and Regional Services
What is it?
Roger Price Chifley, Australian Labor Party
Relevance. The question was about mortgage repossessions.
David Hawker Speaker
The Chief Opposition Whip will resume his seat. I will rule on his point of order. The Prime Minister is in order.
John Howard Bennelong, Liberal Party, Prime Minister
Fifteen years ago interest rates in this country were double what they are now, yet housing was more affordable. That, as a matter of logic, must mean that there are reasons other than interest rates why housing is now not affordable for young Australians. The reason is that the cost of land has gone up astronomically because state governments will not release enough land for young homebuyers. That is the reason.
John Howard Bennelong, Liberal Party, Prime Minister
The other reason is that state governments around Australia have used the development process—
Joel Fitzgibbon Hunter, Australian Labor Party, Shadow Assistant Treasurer and Revenue
Mr Fitzgibbon interjecting
Anthony Albanese Grayndler, Australian Labor Party, Deputy Manager of Opposition Business in the House
Mr Speaker, I rise on a point of order. The Prime Minister has not mentioned mortgage repossessions. That is the basis of the question.
David Hawker Speaker
The member will resume his seat. The Prime Minister’s response is relevant to the question.
John Howard Bennelong, Liberal Party, Prime Minister
The reason why housing is now so hard for young people to get into is that the cost of buying a house has gone up dramatically due to the cost of land having gone up—in the case of Sydney, by 700 per cent—and also due to the fact that state governments are using a development process as a money-making exercise.
John Howard Bennelong, Liberal Party, Prime Minister
It is not due to interest rates. It is overwhelmingly due to the factors I have mentioned, and it is about time that the inner-urban elites that dominate the urban consolidation policies of state Labor governments were put aside in the interests—
John Howard Bennelong, Liberal Party, Prime Minister
of young homebuyers who want to have a home of their own on the outer periphery of our great cities.