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Thursday, 10 May 2012
Page: 3128

Housing Supply and Affordability

Senator PAYNE (New South Wales) (14:31): My question is to the Minister representing the Minister for Housing, Senator Evans. Given that detached dwelling commencements fell for four consecutive quarters in 2011, rents increased by 4.6 per cent over the year, well above the CPI of 3.1 per cent, and housing supply and affordability has been a COAG agenda item for 2½ years, why hasn't the government introduced any specific measures in the budget to improve housing supply and affordability, which is in such a dire state?

Senator CHRIS EVANS (Western Australia—Minister for Tertiary Education, Skills, Science and Research and Leader of the Government in the Senate) (14:32): I think the senator's question is misplaced, in the sense that, like so many in the media, she looks at one budget and assumes that, if there is not a new measure there, you are not doing anything. That is completely wrong. The senator well knows that the Labor government's investment in housing has been enormous. Since 2007, we have invested $20 billion in a broad-ranging and innovative affordable housing agenda. Just because there are not new measures in a particular area it does not mean there is not enormous investment and a reform program occurring in that area. I have had that issue in my own area of higher education, with us increasing the indexation rate and continuing record funding to universities. That does not warrant much mention because it does not show up as a new item. The media want to know what is new. What is the case is that our investment in housing continues. We are assisting homebuyers, renters and people who need social housing, and tackling homelessness.

I think it is well recognised in the community that this government has done more than any previous government to try and deal with the huge shortage of housing in this country, particularly for those people on low incomes. We have had a serious problem with homelessness, and this government has sought to tackle that head-on. As I say, we have made enormous investments in a range of schemes—the National Rental Affordability Scheme, the National Partnership Agreement on Social Housing. All those sorts of schemes have received huge investment and are starting to deliver good results with the number of homes and the number of people supported. So it is quite wrong to claim that that sort of major drive for investment in housing is not occurring.

Senator PAYNE (New South Wales) (14:34): Mr President, I ask a supplementary question. Can the minister explain why the government then has not given any indication of funding allocations to the states and territories for homelessness in the budget beyond the expiry of the National Partnership Agreement on Homelessness, which expires in 2012-13? If the government's measures are working so well, why is housing supply going as badly as it is?

Senator CHRIS EVANS (Western Australia—Minister for Tertiary Education, Skills, Science and Research and Leader of the Government in the Senate) (14:35): The question, if I understood it correctly, is regarding national partnerships. Of course you do not enter into the budget figures for partnerships that are yet to be negotiated, but the reality is that we are putting $6 billion investment into social housing construction and it is delivering more than 21,000 affordable homes and, of course, supporting construction jobs. Nineteen thousand of these new homes have been completed, with the remainder to be finished in 2012. The $4.5 billion National Rental Affordability Scheme will increase the stock of more affordable rental properties by 50,000 homes. So there is an awful lot of effort and investment into trying to tackle the housing and homelessness problems this nation confronts, but it is a big job because we were left with a very big deficit. (Time expired)

Senator PAYNE (New South Wales) (14:36): Mr President, I ask a further supplementary question. Given that 2011 was the second straight year that dwelling commencements fell in four consecutive quarters, that we have a housing shortage of 186,800, set to pass 300,000 by 2014, and that the government is apparently relying on the Reserve Bank to improve housing affordability, how can Australians have any confidence that the government is serious about improving housing, especially for the two million private renters, who do not benefit from interest rate cuts, and those who are vulnerable to homelessness?

Senator CHRIS EVANS (Western Australia—Minister for Tertiary Education, Skills, Science and Research and Leader of the Government in the Senate) (14:36): I think it is a bit rich coming from Senator Payne, who was a senator during the period of the Howard government, to accuse us, a government that does have a housing minister, who has focused on these issues, given that under the Howard government there was no housing minister for 12 years. The Howard government ripped $3.1 billion out of the housing budget, so to come in here and say, 'You ought to be doing more,' with your record, quite frankly, takes a lot of gall. The last time you had a chance to support affordable housing you voted against the stimulus that we tried to introduce. You voted against it in the last parliament. So to come in here and say, 'Isn't it terrible that you're not doing more,' when you did nothing and when you voted against the measures we have introduced is, quite frankly, a bit rich. This government is absolutely committed to continuing its investment in housing to support the very big challenges that we confront. (Time expired)