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Thursday, 27 September 1973
Page: 1613

Mr HANSEN (WIDE BAY, QUEENSLAND) - My question is directed to the Minister for Housing and it is supplementary to that asked by the honourable member for Cook. Is one-third of the housing assistance loans made under the States grants housing assistance legislation made available to building societies at the 4 per cent interest rate which has been fixed by this Government, or is it made available to the building societies by the State governments at a different rate of interest?

Mr SPEAKER - I think that was a supplementary question. I call the Minister for Housing.

Mr Les Johnson (HUGHES, NEW SOUTH WALES) - The position is that under the Commonwealth-State Housing Agreement the funds are made available at 4 per cent for ordinary purposes and at 4½ per cent for the home builders account which is a source of terminating building society funds. Those societies pass on that money to borrowers at a maximum of5¾ per cent interest, a highly concessional rate in the current situation.

Mr Malcolm Fraser - That is not all their funds; that is only part of their funds.

Mr Les Johnson (HUGHES, NEW SOUTH WALES) - It is about half the funds which sustain terminating building societies. The honourable member oughtto appreciate that funds at5¾ per cent are highly concessional and that the action taken by this Government in providing a substantial increase the allocation will assist greatly to bring home ownership within the capacity of low income people.

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