Wayne Swan Lilley, Australian Labor Party, Shadow Treasurer
2:46 pm
My question is directed to the Prime Minister. Has the Prime Minister seen predictions of the impact of new land releases on house prices by Mr Alan Moran, the Prime Minister’s preferred housing expert, who said:
In the case of Sydney, outer Sydney, we would see a very dramatic reduction over time, we would see a reduction of perhaps half.
... in Melbourne we would see a reduction of maybe a quarter.
... Adelaide about the same again.
... Perth a little bit more than that.
Given that new land releases would lead to a significant impact on the value of the family home, is the Prime Minister still advocating this proposal as the sole solution to families who are struggling with their mortgage?
John Howard Bennelong, Liberal Party, Prime Minister
Mr Speaker, I know my hearing is bad, but I thought the member for Lilley said that any new land releases would have an effect on the value of the family home.
Wayne Swan Lilley, Australian Labor Party, Shadow Treasurer
Mr Swan interjecting
David Hawker Speaker
Order! The member for Lilley has asked his question.
Wayne Swan Lilley, Australian Labor Party, Shadow Treasurer
Mr Swan interjecting
David Hawker Speaker
Order! The member for Lilley does not have the call.
John Howard Bennelong, Liberal Party, Prime Minister
You have been caught out. The shadow Treasurer is saying that any land release will have an effect on the value of the family home. I have in fact seen what Mr Alan Moran said. I saw it on Lateline, late on Friday night.
Kim Beazley Brand, Australian Labor Party, Leader of the Opposition
And it gave you the horrors.
John Howard Bennelong, Liberal Party, Prime Minister
No, I took it in calmly, and I thought, ‘I’ll bet that’s a selective grab.’ Of course, on 6PR, he qualified his comments. He said, ‘Well, I’m not suggesting there’s going to be open slather.’ Of course there is not. Obviously, if you decided to hurl vast tracts of land onto the market, of course it would have an impact. Nobody is arguing that. What I have in mind are modest proposals—and they were modest proposals; they came from the Australian Labor Party, actually. That is why I know they are modest! This is what Jenny Macklin had to say—and this was when they were interested in young home buyers:
Let’s also work with State Governments to make sure that we get adequate land release—
Unidentified interjection - Hansard doesn't record who said this
Government Members:
Government members interjecting—
John Howard Bennelong, Liberal Party, Prime Minister
Do I assume that the value of the family home in Sydney is now going to go down if we adopt those policies? She continued:
... that we get proper urban development, regional development, that we address this issue as broadly as possible.
On 15 March, Kim Carr not only called on the states but also on the Commonwealth to make a contribution. The reality is that the policies of the state governments have contributed to the very issue drawn attention to by the retiring Governor of the Reserve Bank.