Page 230 - Week 03 - Tuesday, 30 May 1989
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The importance of the Government's housing policy review in addressing housing needs in the public and private sectors.
MR DUBY (3.11): Mr Speaker, in raising a matter of public importance on the proposed ACT housing policy review the No Self Government Party at the outset states that we support this initiative by the Government. However, I am concerned that this review may be used as a means of showing concern and doing little or nothing.
Housing is of fundamental importance to all Canberrans and a fundamental review of all housing policies at the local level is long overdue. While the terms of reference released by the Minister for Housing and Urban Services are broad, there are some key issues that we believe should be addressed during the review. With recent increases in interest rates, home ownership has become more difficult for families to achieve and to continue to meet repayments.
The deposit gap has become a critical issue, and the Government's role in assisting first home buyers needs critical review. While the Commonwealth Government's first home owners scheme is intended to assist in this area, the ACT Government has a responsibility to ensure that there is an adequate land supply so that there is no rapid escalation of land prices which has made home ownership unattainable for families in other cities of Australia.
The regulation of the planning and housing industry should be streamlined so that adverse impacts on house prices are minimised while at the same time consumers are protected.
We are also concerned that low start loans in a period of increasing interest rates can lead to major problems for families. There have been many examples of young home buyers having to sell their houses as a consequence of these practices. The reality of escalating repayments and increasing amounts owing as a consequence of capitalisation of deferred interest payments is an issue that should be closely examined in the housing policy review. I do not deny that these schemes can assist certain families, but their application by private lenders requires close and careful consideration.
There are other issues which also impact upon the deposit gap, and I wish to raise the question of stamp duty remissions for first home buyers or income tested first home buyers. I understand that the ACT is the only State or Territory where no concessions are made in stamp duty for first home buyers, and this matter should be rectified as soon as possible. Legal fees and conveyancing costs are too high in the ACT, and in other States I know that cheaper but equally effective services are provided. These costs represent a significant part of the deposit gap, and I believe that costs in these areas should also be encompassed by the review.
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