Hughes MP Jenny Ware: Risky approach to address housing crisis

MP JENNY WARE

HUGHES MP Jenny Ware discusses housing - a topic that has dominated discussions in Parliament and the media this past week. 

“The focus of attention has been the Albanese Labor Government's proposed Housing Australia Future Fund (HAFF) Bill. As a Liberal backbencher, I want to shed some light on why our party opposes this bill. 

“At the outset, I am passionate about and committed to, addressing our housing crisis. Housing affordability is one of the major issues facing our country. 

“Combined with cost of living (which is interrelated), housing affordability is the biggest issue constituents raise with me when I am out and about in the electorate. Private home ownership, the 'great Australian dream' is now at its lowest rate per capita since World War II. 

“Housing is a continuum - we need more Australians owning their own homes to relieve pressure on the private rental market and to provide more funding for social housing to assist homeless people, domestic violence victims and those who for various reasons, are unable to provide for themselves.

“This is the role of government. Governments in the 21st century should not be in the business of building houses. Governments should be facilitating an environment where the private sector, the entrepreneurs, with incentives, address the chronic housing supply shortage. 

“Labor’s HAFF Bill aims to address the current housing crisis, but in doing so, has faced a tumultuous journey. After being rejected by Parliament initially, it's making a second attempt for approval in October. The Albanese Labor Government lacks the necessary votes to pass the bill alone and is relying on support from the Greens to secure its passage. 

“At its core, the HAFF Bill seeks to borrow $10 billion, of which will be invested in order to generate profits to be used for building social housing.

“While the intention is commendable, the Coalition has raised valid concerns about the viability and potential implications of this proposed scheme.

“One of our major criticisms is the inherent risk associated with investment strategy.

“Relying on uncertain financial gains is a risky venture, as seen in the downturn of similar ventures like the Future Fund, which recorded losses of about 2.1 per cent in the previous year. 

“The Coalition fears that the HAFF may follow a similar path, leading to disappointing returns and leaving the promise of new housing unfulfilled.

“Labor promises that the HAFF will build about 30,000 new social and affordable housing properties in the first five years, from their estimated $400 million in annual earnings from the $10 billion investment. 

“However, the lack of specific details on the number and location of these houses, as well as the timing of returns, raises doubts about the feasibility of their plan.

“The Greens, while critical of certain aspects of the Bill, have offered conditional support. For their support they demand up to $2.5 billion in annual funding for public, community, and affordable housing, along with significant renters' rights reforms, including a freeze and cap on rent increases. 

“However, the Coalition knows that such policies, especially the rental freeze, discourages investment in the housing sector, leading to fewer available rentals and exacerbates homelessness.

“What  is needed is a more intelligent approach. New policies should empower Australians into home ownership. As a mother of teenagers, I retain a personal interest in ensuring that our sons and daughters can afford to buy or rent in the areas in which they grew up if they choose to do so. 

“Furthermore, Labor's reluctance to take on the Greens is mystifying. Labor can and should, work with the Liberals to bring about sensible housing policy. The Greens are a political fringe, completely out of step with, and incomprehensible to, most Australians.

“Housing provides physical shelter. Housing provides financial security. Housing provides a place for families, for friends to gather. Housing provides a place, where needed, to hide from the world.  Federal Government needs to do better for Australians with housing policy.”

Published by The Leader Newspaper on 9 August 2023.