House debates
Wednesday, 29 November 2006
Questions without Notice
Interest Rates
2:38 pm
Peter Slipper (Fisher, Liberal Party) Share this | Link to this | Hansard source
My question is to the Treasurer. Would the Treasurer outline for the House recent developments in the property market? What effects do interest rates have on rentals?
Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source
The ANZ Property Outlook reports that CBD markets are tightening and vacancy rates are falling in the cities. In Sydney, prime office rentals have now reached over $500 per square metre. In Brisbane, rentals have now reached over $400 per square metre. In Canberra, office rentals have now reached over $300 per square metre. But there is one building in Canberra that does not have a rental of $300 per square metre, or $400 per square metre, or $500 per square metre. There is a building in Canberra which has a rental of $1,100 per square metre. The ALP’s Centenary House has a higher rent than rents in the West End of London, a higher rent than rents in Tokyo and a higher rent than rents in mid-town New York.
Brendan O'Connor (Gorton, Australian Labor Party) Share this | Link to this | Hansard source
Mr Brendan O’Connor interjecting
Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source
The new owner of Centenary House reports today that—
Brendan O'Connor (Gorton, Australian Labor Party) Share this | Link to this | Hansard source
Mr Brendan O’Connor interjecting
Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source
when that lease—the lease which the ALP negotiated—returns to market in 2008, the current rental of $1,100 per square metre will fall to the market rate of $385 per square metre. In 2008 it will fall to a third of its current value. It is also estimated that this non-commercial rent has now creamed off $42 million from the Australian taxpayer for the Australian Labor Party. In 2004, when ALP Secretary Bob Hogg was asked why they had to negotiate such a rental for ALP Centenary House, he said that they had to have a high rental ‘because high interest rates in the early 1990s led us to lock in a 10-year rate deal with the banks at 13 per cent’. In other words, they thought the Labor Party would remain in office, so they locked in at 13 per cent, and because they locked in at 13 per cent they had to go above market—market being $385—to $1,100 a square metre.
Members of the House will know that recently I have been keeping company with rock stars. Last week I had a meeting with Bono. Earlier in the year I met Australian rock stars such as Athol Guy of the Seekers. I also familiarised myself with another rock star, who played with a band called Midnight Oil. I leave to Midnight Oil the last word on the $42 million of creamed-off rent. It is the lyrics of a song called Beds are Burning. Have a listen to this:
Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source
Have a listen to the lyrics:
The time has come to say fair’s fair
To pay the rent
To pay our share
The time has come—
David Hawker (Speaker) Share this | Link to this | Hansard source
Order! The Treasurer will resume his seat.
Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source
It goes on:
A fact’s a fact—
David Hawker (Speaker) Share this | Link to this | Hansard source
The Treasurer will resume his seat!
Warren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for Northern Australia and Indigenous Affairs) Share this | Link to this | Hansard source
He’s no Australian Idol, that’s for sure!
David Hawker (Speaker) Share this | Link to this | Hansard source
The member for Lingiari will remove himself under standing order 94(a).
The member for Lingiari then left the chamber.
Anthony Albanese (Grayndler, Australian Labor Party, Deputy Manager of Opposition Business in the House) Share this | Link to this | Hansard source
Mr Speaker, I take a point of order. With respect to your actions against the member for Lingiari, all of us were enjoying the performance by the Treasurer. It was light-hearted, in the good spirit of the parliament, and the member for Lingiari gets tossed out, and his constituents—
David Hawker (Speaker) Share this | Link to this | Hansard source
The member for Grayndler will not reflect—
Anthony Albanese (Grayndler, Australian Labor Party, Deputy Manager of Opposition Business in the House) Share this | Link to this | Hansard source
I might add that this is a song about reconciliation. He probably doesn’t know.
David Hawker (Speaker) Share this | Link to this | Hansard source
The member for Grayndler will resume his seat.
Anthony Albanese (Grayndler, Australian Labor Party, Deputy Manager of Opposition Business in the House) Share this | Link to this | Hansard source
It’s about land rights.
David Hawker (Speaker) Share this | Link to this | Hansard source
The member for Grayndler will resume his seat. The member for Grayndler raised a point of order. He would be aware that the chair was on his feet and the member for Lingiari continued to interject. The Treasurer will conclude his answer.
Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source
The lyrics go:
The time has come
To say fair’s fair
To pay the rent
To pay our share
The time has come
A fact’s a fact
It belongs to them
Let’s give it back
Mr Speaker, the $42 million belongs to the Australian taxpayer. Let the ALP give it back.
David Hawker (Speaker) Share this | Link to this | Hansard source
Members are holding up their own question time.