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Labor's five minutes of sunshine for home buyers.



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Wed, 8th July 2009

LABOR'S FIVE MINUTES OF SUNSHINE FOR HOME BUYERS

Scott Morrison MP

Shadow Minister for Housing and Local Government

Shadow Minister for Housing and Local Government, Scott Morrison, says home borrowers will continue to face

difficulties arising from the Rudd Labor Government’s approach to economic management.

Mr Morrison says housing finance data today reveals that major banks retain a stranglehold on home lending with

a 91.8% share, seasonally adjusted, of all new housing loans taken out in May 2009.

“Last year’s deposit and wholesale terms funding guarantees have not offered equal treatment for all lending

institutions, and we should not be surprised that one sector of the market remains firmly dominant.

“Borrowers have not received the full benefit of cuts in official interest rates despite pleas from the Prime Minister

and Treasurer for banks to observe the full cuts.

“Australia’s financial regulation is acknowledged as a world leader, thanks to the reform of the Howard

Government. However the Rudd Labor Government cannot afford to live off the Coalition’s economic legacy

forever.

“They have already squandered the nation’s finances through their poorly targeted spending spree, trying to buy

five minutes of economic sunshine with a generation of debt,” Mr Morrison said.

“Labor needs to do some heavy economic reform lifting of its own.

“Quite simply, Labor’s claims to strong and conservative economic management are being seen as what they

always were - a total furphy,” Mr Morrison says.

“Home borrowers will continue to do it tougher than necessary while ever this Labor administration continues its

reckless behaviour,” he says.