Labor continues to ignore housing sector as shortage grows worse

Labor continues to ignore the housing sector even as new ABS figures show new home starts fell by 7 per cent in the 2010-11 financial year, said Senator Marise Payne, Shadow Minister for Housing.

Senator Payne said that in the June 2011 quarter, seasonally adjusted dwelling commencements fell by 4.7 per cent, further exacerbating the national housing shortage.

“This is even more concerning when you consider that Julia Gillard’s carbon tax has not been implemented yet,” Senator Payne said.

“The carbon tax will add $5,000 to the cost of building an average new home without doing anything to reduce global temperatures, so this is hardly an incentive to kick-start home-building.

“Households are already being squeezed by skyrocketing utility bills so by stubbornly proceeding with the carbon tax, the Prime Minister is heaping more pain on families, whose dream of building a new home is getting further out of reach.

“However, Labor still fails to see that its incompetent approach to all areas of economic policy has unintended consequences for all Australians and the housing sector is just another victim.

“Labor has already made life hard enough for Australian consumers and homeowners with its wasteful stimulus spending and large deficits, resulting in increased inflation and higher interest rates. They will not cop another assault on their standard of living, especially one based on a lie.

“Julia Gillard must learn that she and her government are the problem, not the solution. They must immediately cut back spending and scrap the carbon tax to restore confidence in housing and the general economy.”