House debates
Thursday, 7 September 2006
Questions without Notice
Interest Rates
2:50 pm
Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source
With your indulgence, Mr Speaker, I indicate that the opposition supports the government’s efforts at securing clemency with regard to the individuals dealt with in the answer from the foreign minister. My question is to the Prime Minister. I refer the Prime Minister to his answer yesterday about 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 the levels recorded in 1991. Prime Minister, if interest rates are not to blame for the increase in repossession actions, why is it that repossessions only started going through the roof in 2002, precisely when interest rates started to rise?
John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source
In relation to repossession, there can be a variety of reasons why repossessions might fluctuate over a period of time. The point I made yesterday relating to housing affordability—and of course it is impossible to separate the issue of housing affordability from the issue of repossession—is something that I repeat today—
Tanya Plibersek (Sydney, Australian Labor Party, Shadow Minister for Childcare) Share this | Link to this | Hansard source
Ms Plibersek interjecting
John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source
and that is that the major cause of the increase in the unaffordability of the first home for young Australians has undeniably been the price of land.
Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source
Mr Speaker, I rise on a point of order. The question was about repossessions and their relation to interest rates, not issues of housing affordability.
David Hawker (Speaker) Share this | Link to this | Hansard source
I have been listening to the Prime Minister. He is responding to the content of the question. I call the Prime Minister.
John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source
My point simply is that it is harder for young Australians to buy their first home, and the major reasons for that are the cost of land due to the restrictive land release policies of state governments and the way in which state governments are using the development process as a revenue-raising device.
Michael Hatton (Blaxland, Australian Labor Party) Share this | Link to this | Hansard source
Mr Hatton interjecting
John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source
If you look at the figures in relation to the city of Sydney, those figure show very clearly that in the 30-year period between—
Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source
Mr Speaker, on a point of order that goes to relevance: this has got nothing to do with repossessions, which have been going through the roof since interest rates started to rise.
David Hawker (Speaker) Share this | Link to this | Hansard source
The Prime Minister is responding to the content of the question. I call the Prime Minister.
John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source
I simply conclude by reminding the House again that between 1973 and 2003 the cost of land in Sydney rose by 700 per cent and the cost of building rose by about four per cent in real terms. Fifteen years ago interest rates were double what they are now. It is therefore beyond logical argument that the principal reasons for the problem young Australians now have are the land release policies of state governments and the way in which they use the development process as a way of extorting revenue from young people.