Page 2964 - Week 08 - Thursday, 25 June 2009

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deep W effect, so that there will be a double whammy on economies. Of course, the other line is an almost flat-line effect where it will reach a bottom, which some seem to think we have reached now, and it will just bounce along that bottom for an extended period of time with—

Mr Coe: Like an L shape.

MR SMYTH: It is not really an L; it comes out at some stage. I will pick up after lunch.

Sitting suspended from 12.32 to 2 pm.

Questions without notice

Land—rent scheme

MR SESELJA: Mr Speaker, my question is to the Chief Minister. Chief Minister, one of the reasons stated by Genworth Financial and others for not supporting the land rent scheme is the fact that the ACT government had primacy in the recovery of repayments in the event of default. Chief Minister, was this position changed as part of the arrangements with Community CPS?

MR STANHOPE: Mr Speaker, I took this question on notice yesterday and said that I would get some detailed information in relation to this issue and provide it to the Assembly. This is one of the issues that were subject to some of the detailed negotiations that have gone on between the government and CPS. I stand by the answer I gave yesterday. I have not yet received that information.

Yes, Mr Seselja, I will confirm that issues in relation to priority in the event of repossession were issues that really are at the heart of an agreement that has been arrived at between the ACT government and CPS. Having said that, I do wish to give this level of comfort and assurance to members prior to providing the detail on the question that I took on notice yesterday and which the Leader of the Opposition asked again today: CPS, in 15 years, have, on two occasions, taken repossession action as a consequence of default on a home loan mortgage. That is, I think, a stunning record that CPS has achieved as a result of the very responsible, prudent attitude that it takes to home lending.

I might say in that context that it goes to the issue of the 20 per cent deposit, the standard mortgage deposit, that CPS have indicated they would propose in negotiations with people who seek a mortgage under the land rent arrangements. Just to update members of the Assembly, let me say that I am advised today by CPS that they are now in negotiations with 30 members of the Canberra community seeking access to a home loan or a mortgage for land rent. So in the 48 hours since announcing—actually, indeed, in the 24 hours or 30 hours now—in the 30 hours that this product has been available, CPS are having discussions with 30 clients seeking a mortgage to build a home under the land rent scheme. I am sure that members would join with me or share with me my excitement at the fact that 30 young Canberra families in the first 30 hours of operation of this scheme have approached CPS with a view to realising their dream of homeownership.

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