[Greens-Media] (Sylvia Hale MLC) Tinkering At The Edges On Housing

[Christopher Holley]

Rudd Tinkers At The Edges While Howard Gives Up On Housing

Kevin Rudd’s latest plan to boost housing affordability will only
affect those buying on the fringes of Sydney and may merely provide a
windfall subsidy to developers, said NSW Greens MLC and housing
spokesperson, Sylvia Hale.

“Developers are always griping about being made to contribute to
infrastructure costs. Labor’s plan will take some of the burden off
them, and also reduce their holding costs, but it does not guarantee
that these savings will be passed onto home buyers,” said Ms Hale.

“Will Labor’s housing plan really improve affordability? Certainly
for those with almost sufficient funds to enter home ownership and those
who want to live on the city’s fringe, there may be a small saving.

“However, to put it in perspective, a saving of $20,000 on a $361,000
house and land package in one of Sydney’s typical new estates at
Glenfield is a saving of only 5.5%, even if it is fully passed onto home
buyers.

“Even with the assistance, there will be few reasonably-priced
smaller homes in the new development areas.

” If it really wants to improve affordability the Government should
be providing funding for its housing agencies such as LandCom, rather
than subsidising private developers,” said Ms Hale.

“And what about secure, affordable, long-term rental stock for people
who want to live somewhere closer to their work? The Government should
be assisting the development of a not-for profit intermediate housing
sector for workers on low and moderate incomes.”

”I note that Kevin Rudd has not endorsed the suggestion of a tax
incentive scheme that could support this.”

“It appears Labor still supports propping up speculation in housing
through tax breaks for investor landlords rather than providing tax
incentives to encourage investment in genuinely affordable housing
provision,” said Ms Hale.

“The Howard Government’s ‘plan’ to pay the private sector to
build public housing is not a helpful or even serious contribution to
the debate. It’s a pity that the Howard government can’t see past an
opportunity to blame the states and look instead at developing real
solutions.”

“The Howard government has slashed 25% from public housing funding
over the last 10 years while inflating house prices through tax
incentives and grants to first home buyers. Mr Howard now has the hide
to blame the states for the problems caused by his own failed
policies,” said Ms Hale.

“The Howard Government has absolutely no credibility on housing,”
Ms Hale concluded.


 Contact: Chris Holley on 02 9230 3030 or 0437 779 546