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Government's Housing Policies



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' ” i* \ FEDERAL PRESIDENT:

MR. R.J. SOUTHEY, C.M.G. DIRECTOR: MR. B.G. HARTCHER, O.8.E.

LIBERAL PARTY OF AUSTRALIA

Sunday 24 M arch 1974

FEDERAL SECRETARIAT BLACK ALL Ά MACQUARIE STS., BARTON. A.C.T G.P.O. BOX 13, CANBERRA, A.C.T. ?600 TELEPHONE 73 7ΓΤ3-1 Tt-I.f GRAMS · ΡΕΟΕ!Î’'· CANBERRA

ST A T E M E N T BY THE D E P U T Y L EA D ER O F THE O PPOSITION, THE HON PH IL L IP LYNCH.

T he F e d e r a l G o v e rn m e n t's ja c k h a m m e r ap p roach to h o u sin g p o lic y is (

s y s t e m a t ic a lly d e s tr o y in g th e b u ild in g in d u str y , th e D eputy L ea d er of th e . i

Opposition,n,· Mr P h illip L ynch, s a id tod ay.

"The c r i s i s in th e h o u sin g in d u str y h a s no p a r a lle l s in c e the e a r ly

1 9 5 0 's, " Mr L ynch s a id . "Since L abor c a m e to pow er: .b u ild in g s o c ie t y lo a n s h a v e fa lle n 55 p e r c e n t, *

. s a v in g s bank loan a p p ro v a ls h ave b e e n cut b a c k 12. 5%. , b u ild in g c o m m e n c e m e n ts h ave dropped 12% for th e la te s t q u a rter . . in t e r e s t r a t e s have s p ir a lle d to u n p reced en ted h e ig h ts. . b u ild in g c o s t s h ave ju m ped 15% in r e s p o n s e to a cu te su p p ly s h o r ta g e s . .

. th e c o s t o f h o u sin g lo a n s o v e r a ll.h a s r is e n b y a s ta g g e r in g 25%, w h ilst

h o u sin g c o s t s in g e n e r a l h a v e b e e n pu sh ed up 20% - - a t a lm o s t ,

double the rat® o f th e g e n e r a l p r ic e in c r e a s e .

; "It h a s b e e n e s tim a te d that 50% of A u s tr a lia 's h o u sin g n e e d s w ill

not b e m e t th is y e a r.. T en s of th o u sa n d s of A u s tr a lia n s w ill h ave inadequate

■ h o u sin g , " M r L ynch s a id . .

"Labor a p p ea r s inten t on m ak in g A u s tr a lia a n ation r e n t-p a y e r s .

"The in te n sity of th is c r i s i s r e la t e s d ir e c t ly to th e F e d e r a l G overnm entfs inept e ffo r ts to r e d u c e h o u sin g fin a n ce and its g r o s s m ism a n a g e m e n t of s p e c if ic in d u str y p r o b le m s .

" C le a rly , th is is a m a tte r o f the u tm o st c o n c e r n .

"In a d e s p e r a te e ffo r t to s h o r e up its p a s t m is ta k e s , C abinet d ecid ed

la s t w eek to pump o v e r $100 m illio n into h o u sin g b y w ay o f ta x d e d u c tib ility .

f

"Yet th is p o lic y w as to ta lly ill- c o n c e iv e d .

"It d is c r im in a t e s a g a in st the low in c o m e -e a r n e r : it is in fla tio n a ry ; it w idens s t i l l fu rth er th e d e p o s it gap for th e a v e r a g e h o m e -b u y e r and fu rth er d is to r ts

th e o v e r a ll s tr u c tu r e of th e h o u sin g m a r k e t. ..-·

# "A c o n s is te n t and in te g r a te d p o lic y is n e e d e d to b r id g e the d e p o sit gap

and to m ak e a v a ila b le lo w - in t e r e s t lo a n s . r<-

"The L ib e r a l P a r ty h o u sin g p o lic y is a p o s itiv e r e s p o n s e to a ll

th e s e p r o b le m s . A L ib e r a l G overn m ent w ould:

r - r e s t o r e governm ent a s s is t a n c e fo r th o se -b u y in g th e ir f ir s t h om e. - - in v e s tig a te im p le m en ta tio n of a h o m e r e p a y m e n ts s c h e m e t o g u a ra n tee lo a n s and r e s tr u c tu r e loan r e p a y m e n ts for low and ·

m iddle in c o m e e a r n e r s . - - p r o g r e s s iv e ly r e d u c e in t e r e s t r a t e s . ‘ ' '

- - in v e s tig a te p r o g r a m m e s o f c o o p e r a tiv e h om e o w n ersh ip to

a s s i s t low in c o m e e a r n e r s . - - tak e p rom p t a c tio n to r e d u c e th e e x is t in g s h o r ta g e s o f lab ou r and

‘m a t e r ia ls in th e b u ild in g in d u str y th rou gh th e e n c o u r a g em en t of tr a in in g and r e tr a in in g p r o g r a m m e s , s e le c t iv e r e c r u itm e n t o f s k ille d tr a d e s m e n o v e r s e a s , and funding r e s e a r c h p r o g r a m m e s to , d e v e lo p new b u ild in g m a t e r ia ls and te c h n iq u e s.

- - c o o p e r a te w ith th e S ta te s to: e s t a b lis h a N a tio n a l H ou sin g G uidance

' B u rea u , e n c o u r a g e m e d iu m -d e n s ity h o u sin g , and to in c r e a s e th e

su p p ly o f u r b a n -z o n e d and s e w e r e d land , s o a s to in c r e a s e th e su p p ly

; o f h om e s it e s at s ta b le and r e a s o n a b le p r ic e s .

T h e M in is te r fo r H ou sin g h a s fa ile d to p r o v id e e v e n th e b a s ic fr a m e w o rk

o f a h o u sin g p o lic y , "Mr L ynch s a id . "Mr Joh n son p r o m is e d to r e d u c e in te r e s t r a t e s , but h a s not done on e th in g about th em . . "He p r o m is e d that th e a v e r a g e A u str a lia n w ill b e a b le to obtain a hom e

th is y e a r , but th is is c le a r ly im p o s s ib le . "

"He p r o m is e d to ta k e c o n c e r te d a c tio n to im p r o v e co n d itio n s in th e b u ild in g m a t e r ia ls m ark et; but p r ic e s h ave r o c k e tte d and su p p ly s h o r ta g e s h ave r e a c h e d c r it ic a l p r o p o r tio n s. ·

"T his situ a tio n cannot b e a llo w e d to co n tin u e. > . .

"Mr Joh n son sh ou ld sto p la y in g v e r b a l b r ic k s and g et on w ith .

h is job , "Mr L ynch s a i d . .