Mr. Nalder questions the Treasurer on the increase in WA mortgage holders in negative equity and asks what actions are being taken to assist them. The Treasurer deflects, highlighting perceived inconsistencies in the opposition's stance on housing supply.

AnsweredQoN 947Legislative Assembly
Asked
21 November 2018
Portfolio
Treasurer

QuestionView source ↗

PERSONAL INSOLVENCIES
947. Mr D.C. NALDER to the Treasurer:
I have a supplementary question.
Given the damage the Treasurer has done to discretionary expenditure and the
flow-on impacts to the retail and housing sectors, is he aware that Western Australian
mortgage holders in negative equity have increased from 10.9 per cent in 2016
to 16.5 per cent, and what is he doing to assist people with negative equity?

AnswerView source ↗

I am looking forward to this
afternoon's debate. The shadow Treasurer complains on one hand about
negative equity, and why is that? Because of the excess stock we have in the
housing sector. On the other hand, he is desperate for me to provide a stimulus
to build more stock. I can guarantee him that if I pump more stock into a sector
already over-supplied, what will that do to negative equity? Have a think about
it. There is this old thing in economics called supply and demand. If he likes,
I will get the Under Treasurer to give him a rundown. But what am I going to
do? I have a great quote from the Leader of the Opposition's Urban
Development Institute of Australia speech, which I will come to in just a minute.
I think it was a purler. If anyone on the opposition side of Parliament would
like a copy, I will send them all the audio because it is a beauty of a speech.
Ultimately, what will happen? As recognised by the Leader of the Opposition in
his speech on Friday at the UDIA, ''The housing sector will eventually
come back and that negative equity will be absorbed.''

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