Page 873 - Week 06 - Tuesday, 25 July 1989
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in ACT growth could be expected following the very high growth in the past, the continuation of high interest rates is likely to have a disproportionate effect on the ACT economy, and that is a matter about which we are all concerned.
The level of interest rates is, however, a matter for the Federal Government. Whilst it might be appropriate for various political parties in this place to attack the Federal Labor Government in the lead-up to a Federal election, it is, nevertheless, a Federal matter and pretty much out of the control of this house.
The effects of interest rates, however, are of great concern to the ACT community. Most important is the impact of high mortgage rates on those people currently buying homes. The rise in interest rates has increased the average home repayment by about $200 a month, and this is an increase of around 25 per cent. That would be a shock to any family, whether it is in the ACT or otherwise. I do not believe that these circumstances are acceptable, and of course we all have to work to do something about them. Having said that, I think there is little the ACT Government can do about interest rates directly.
I believe that there are a number of ways in which we can act, however, to reduce the impact of high housing costs. The first major initiative of our Government was to announce a broad-ranging review of housing policy. It will, among other things, address measures which can be introduced to minimise the cost of housing to ACT residents. Specifically, the review will address the possible introduction of new housing finance methods.
It is also our desire to ensure that the public housing system operates in the most efficient and effective way possible. Mr Speaker, an important aspect of housing prices is the cost of land. This is a matter over which we in the ACT Government have some control, and we will be acting to ensure that land costs are kept as low as possible. Not only will we be acting to keep land development costs low but also we will be attempting to ensure the supply of sufficient land. That is one of the great benefits of our leasehold system.
As members will be aware, the Chief Minister approached the Federal Government over the release of Commonwealth land such as the Belconnen naval station. We hope that these prime residential sites will be made available for housing as soon as possible. I say this notwithstanding the revelation that the Belconnen naval station has been used as a dumping ground for toxic material. We believe that this matter should be resolved whether or not the land is released for housing, because it is a matter which impacts on the whole of the ACT. Toxic material should not be allowed to remain there, and the land should be released for housing. The Chief Minister has recently written to the Prime Minister on this matter.
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