Page 1676 - Week 08 - Thursday, 28 September 1989
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the scheme, that there are a number of points there. There is nothing on page 7 to indicate how the scheme is to be funded.
I noted in the Minister's press statement a vague reference to $2.5m as revenue, and indeed, in the figures I looked at in relation to a fidelity guarantee fund, we are looking at figures in the vicinity of $2.3m or $2.4m, but she does not actually say how it is proposed that that figure will be raised, which will certainly more than offset the cost of providing exemption for first home buyers.
Again I would counsel the Government that the way it intends to set up the rental bond trust and the fidelity guarantee fund is a lot more expensive than the proposal the Liberal Party has put forward and indeed would put forward to any committee of this Assembly. I gave brief details of the proposal in summary form to, I think, a member of Mrs Grassby's housing department who sought it.
Basically, we would see the need for a fidelity guarantee fund to be set up and administered by the industry; we would see the need for 80 per cent of the minimum quarterly balance held in trust accounts for agents of their bond moneys and 100 per cent of bond moneys for other bodies to be invested in the fund and deposits held under contracts of sale; 35 per cent of the agents' minimum quarterly balance and 35 per cent of each individual's deposit also to be invested in the fund.
On the figures available to us from the Real Estate Institute, an industry-run fund would only spend five per cent of its interest in administration. Fifty per cent could be easily spent for stamp duty exemptions for first home buyers and in the percentage break-up, that includes for the initial years 35 per cent of the income derived being poured back into the fund to enable a build-up.
That is a self-funding scheme which does not involve any expense and does not involve increasing the bureaucracy. It can be run by the industry. I would submit it is far more efficient than what is proposed by the Minister for Housing and Urban Services in her housing review. Those are the points I wish to make, Mr Speaker, in relation to this matter.
MRS GRASSBY (4.59): Mr Speaker, when I get up in the morning, I think, "What a genius of a Treasurer we have to have come up with such a wonderful budget". I mean, every time I read it, I am absolutely amazed that she should have come up with such a wonderful budget - of course, with the help of the under treasurer, who is sitting here in the house at the moment.
I feel very proud of this first Government that it has come up with such a budget. Not feeling too humble myself, I think the housing part of the budget was also wonderful. It is not possible to do everything to please everybody,
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