Page 882 - Week 06 - Tuesday, 25 July 1989

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The same Minister also announced, during the opening of a centre out there, that it was a suggestion that one of the elements of her defence department would probably be taking up space in the new office block at the churches centre. What has happened, Mr Speaker? I will tell you what has happened. Work on that office block has now stopped because this wink-wink-nudge-nudge suggestion has not been able to be followed through by the honourable member for Canberra.

We must ask, Mr Speaker, what effect this move has had on families that may have committed themselves to mortgages when jobs started on that project. Think about that, for example. I am sure that the honourable member for Canberra did not think of that when she made those announcements on the day the sign for the churches centre was unveiled.

One has to hope that they are not like the family in Calwell which, after being in a house for only six months, has seen its repayments go up to over $1,000 per month. That is an increase, Mr Speaker, of $250 in a month. Meat is no longer on the family menu. The second child that was planned is no longer a possibility. A family just cannot afford it. The MPI asked us to speak on the effect of the mortgage interest rate crisis in Canberra. The stories which are printed in the papers or which come to our office are dramatic.

Mr Speaker, I would like to close by commenting very briefly on one initiative that we in the Residents Rally are proposing, and that is the progressive equity participation, or PEP, program which will enable public sector tenants to take up some of the equity in their homes.

The proposal allows for Housing Trust tenants to purchase shares in units of 20 per cent of the current market value, to a limit of 60 per cent. The remaining 40 per cent for a particular facility would eventually be bought in one major purchase. We hope that banks and building societies eventually would be able to come to that.

The benefits of this scheme, Mr Speaker, are that tenants can bridge the deposit gap by progressively taking up small shares in their home as circumstances permit, with smaller deposits and repayments than would be necessary to purchase a home outright. Tenants would have a vested interest in maintaining their homes and would directly benefit from any improvements they make as well as from the capital appreciation. The Housing Trust would have some of its capital investment freed up to provide other housing, and it would be able to direct its maintenance and supervisory resources to other areas of need.

It is hoped that all members of the Assembly would support this type of long-term measure to help alleviate the current housing crisis. We understand that the Housing Trust is currently seriously looking at this proposal. Mr


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