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Negative gearing won't help housing market in isolation: "stop the flood of dodgy building products first."



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Senator John Madigan Independent Senator for Victoria

--- Media Release --- Negative gearing won’t help housing market in isolation

“Stop the flood of dodgy building products first.”

February 14 2016

Independent Senator for Victoria John Madigan has welcomed the ALP putting restrictions on negative

gearing, saying he called for the policy 18 months ago. But Senator Madigan said it would be

counterproductive unless the government tackled non-compliant building products being used in domestic

construction.

Senator Madigan said a current Senate inquiry had received more than 70 submissions, with many leading

building organizations outlining a flood of dodgy imported electrical, plumbing, glass and steel products

presented a danger to Australian consumers.

“This situation is out of control and we are seeing systemic regulatory failure across the building industry,”

Senator Madigan said.

“Regularly the use of dangerous and non-compliant building products hits the headlines but the

government is sitting on its hands. They have put this issue in the too-hard basket.

“I welcome the ALP tackling the issue of negative gearing. I called for something similar in the senate in

2014. But unless this policy is undertaken in conjunction with a complete overhaul of building industry

regulation and enforcement practices then it will be like trying to put out a fire with petrol.

“The ALP’s negative gearing policy will provide a significant boost to the domestic construction sector and

we will see a surge in the flood of dodgy and dangerous building products coming into Australia.

“I call on Bill Shorten to not chase a cheap headline on this issue and go the hard yards. By all means

tackle negative gearing but also get on the front foot and put real policies in place that will genuinely protect

Australian home owners.”

Senator Madigan said Mr Shorten should announce a national register of certified construction products.

“This would be a good first step to providing easy and accessible information for every builder in Australia.”

Media contact: Bre ndan Gullifer 0428 340 755