❓ The Minister for Housing provides an update on the Keystart program and its positive impact on the WA housing market, while also acknowledging potential challenges from COVID-19 related supply chain issues.
AnsweredQoN 72Legislative Assembly
QuestionView source ↗
KEYSTART
72. Ms C.M. ROWE to the Minister for Housing:
I refer to the McGowan Labor
government's commitment to drive the Western Australian economy and
create local jobs through responsible and targeted housing stimulus measures.
(1) Can the
minister update the house on how this government's changes to Keystart
is delivering encouraging signs for WA's local housing market and
construction sector?
(2) Can the
minister advise the house whether he is aware of anyone who is opposed to those
efforts to stimulate WA's housing sector and support local jobs?
72. Ms C.M. ROWE to the Minister for Housing:
I refer to the McGowan Labor
government's commitment to drive the Western Australian economy and
create local jobs through responsible and targeted housing stimulus measures.
(1) Can the
minister update the house on how this government's changes to Keystart
is delivering encouraging signs for WA's local housing market and
construction sector?
(2) Can the
minister advise the house whether he is aware of anyone who is opposed to those
efforts to stimulate WA's housing sector and support local jobs?
AnswerView source ↗
(1)–(2) I
thank the member for the question. I know what great excitement she has in her
own electorate around the arrival of the Metronet program and precincts that
will give a significant uplift to some of the areas that will get the benefit of added investment in the housing sector,
particularly around the Redcliffe station . We have known for some time—many
members have talked about this—of the challenges in the housing
construction industry and the headwinds they have been confronted with by the
market downturn. The government has not been deaf to those concerns. We have
been in close consultation with the industry, particularly
the Housing Industry Association, the Master Builders Association and the Urban
Development Institute of Australia, among others, and leaders in the
industry sector that are very challenged by housing starts, and we have been
working hard. One thing is for sure: when government is confronted with a problem,
it must formulate a plan, and we have a plan. I am here to inform the house
that that plan is working. I remind members that the government increased the
income limits for qualification for a Keystart loan by $15 000 for singles and
$20 000 for families. This was meant to end in December just gone. In
consultation with cabinet we decided that that needed to go along a bit
further. We have extended that approach to the middle of the year for this
year. That is in addition to the Keystart borrowing—over $470 million
came from that same decision. That brings to a total of $900 million of
additional lending capacity to Keystart, which takes its loan book to $5.3 billion
worth of capability to deliver the sorts of outcomes
for low to moderate income earners. Since 1989, over the past 30 years 107 000 Western
Australian have benefited from a two per cent deposit entry into the
housing market. We are very proud of the outcomes of that great Labor
initiative all those years ago.
That comes on top of the $200 million
worth of industry support for the social and affordable housing program, which
the Premier mentioned. That has delivered to the Western Australian economy the
best support the Western Australia government can give it to support jobs and
trades and keep the trades in the industry.
Annual
Keystart applications rose by 14.5 per cent to January just gone. That is a significant
reversal, given the decline it had seen in its books as the general lending
sector had found. This shows that the changes to the Keystart lending criteria
have worked. We look with great anticipation over the next few months to see
that really accelerate as housing starts to come on. I also note that through
the efforts of the Treasurer, about 75 per cent of those approved Keystart
loans have been eligible for a first home owner grant. Consequently, FHOG
applications were up 2.6 per cent in January and rose by 7.1 per cent in
three-month year-end terms—the fastest growth since September 2017.
These are tangible green shoots of recovery in the housing and construction
industry. However, I warn members that this market, like any other market, is
susceptible to the headwinds that we are confronted with by the coronavirus, or
COVID-19 as it is named. A major household goods provider in this state has
about four weeks' supply of many of its goods left. We talk about the
export impact on our economy, but inbound trade supply is also impacted. Many
of those goods come from China. The housing industry itself is looking hard at
the issues of supply. The supply of materials that are integral to the
construction of a house are also affected as China goes through its challenges;
for example, hinges, door knobs and glass that are an essential part of housing
construction. I have asked for a meeting with suppliers in those industries to
ensure that we understand completely the sorts of things they are going through
and to see what we can do to assist them to find alternative supplies et cetera.
One of the things I said is that
we have a plan, and the plan is working. We are working hard through that
process to make sure, first, that we are listening to industry, and second,
that we are responding. Many on the other side just do not like what we want to
do. They want to cancel the 75 per cent rebate. I would not be surprised if
they want to privatise Keystart. They started with the securitisation of $1.3
billion of the loan book, and they want to cut stamp duty relief. They have been
in this place without shame, talking down the economy and talking about the
backflips they will do. They will do nothing. They will say anything that will
deliver them the sorts of things they think they will need to create the
outcomes that Western Australians deserve from a government. They are like the
Goldilocks of politics. Whatever we serve up is either too hot or too cold; it
is never just right.
thank the member for the question. I know what great excitement she has in her
own electorate around the arrival of the Metronet program and precincts that
will give a significant uplift to some of the areas that will get the benefit of added investment in the housing sector,
particularly around the Redcliffe station . We have known for some time—many
members have talked about this—of the challenges in the housing
construction industry and the headwinds they have been confronted with by the
market downturn. The government has not been deaf to those concerns. We have
been in close consultation with the industry, particularly
the Housing Industry Association, the Master Builders Association and the Urban
Development Institute of Australia, among others, and leaders in the
industry sector that are very challenged by housing starts, and we have been
working hard. One thing is for sure: when government is confronted with a problem,
it must formulate a plan, and we have a plan. I am here to inform the house
that that plan is working. I remind members that the government increased the
income limits for qualification for a Keystart loan by $15 000 for singles and
$20 000 for families. This was meant to end in December just gone. In
consultation with cabinet we decided that that needed to go along a bit
further. We have extended that approach to the middle of the year for this
year. That is in addition to the Keystart borrowing—over $470 million
came from that same decision. That brings to a total of $900 million of
additional lending capacity to Keystart, which takes its loan book to $5.3 billion
worth of capability to deliver the sorts of outcomes
for low to moderate income earners. Since 1989, over the past 30 years 107 000 Western
Australian have benefited from a two per cent deposit entry into the
housing market. We are very proud of the outcomes of that great Labor
initiative all those years ago.
That comes on top of the $200 million
worth of industry support for the social and affordable housing program, which
the Premier mentioned. That has delivered to the Western Australian economy the
best support the Western Australia government can give it to support jobs and
trades and keep the trades in the industry.
Annual
Keystart applications rose by 14.5 per cent to January just gone. That is a significant
reversal, given the decline it had seen in its books as the general lending
sector had found. This shows that the changes to the Keystart lending criteria
have worked. We look with great anticipation over the next few months to see
that really accelerate as housing starts to come on. I also note that through
the efforts of the Treasurer, about 75 per cent of those approved Keystart
loans have been eligible for a first home owner grant. Consequently, FHOG
applications were up 2.6 per cent in January and rose by 7.1 per cent in
three-month year-end terms—the fastest growth since September 2017.
These are tangible green shoots of recovery in the housing and construction
industry. However, I warn members that this market, like any other market, is
susceptible to the headwinds that we are confronted with by the coronavirus, or
COVID-19 as it is named. A major household goods provider in this state has
about four weeks' supply of many of its goods left. We talk about the
export impact on our economy, but inbound trade supply is also impacted. Many
of those goods come from China. The housing industry itself is looking hard at
the issues of supply. The supply of materials that are integral to the
construction of a house are also affected as China goes through its challenges;
for example, hinges, door knobs and glass that are an essential part of housing
construction. I have asked for a meeting with suppliers in those industries to
ensure that we understand completely the sorts of things they are going through
and to see what we can do to assist them to find alternative supplies et cetera.
One of the things I said is that
we have a plan, and the plan is working. We are working hard through that
process to make sure, first, that we are listening to industry, and second,
that we are responding. Many on the other side just do not like what we want to
do. They want to cancel the 75 per cent rebate. I would not be surprised if
they want to privatise Keystart. They started with the securitisation of $1.3
billion of the loan book, and they want to cut stamp duty relief. They have been
in this place without shame, talking down the economy and talking about the
backflips they will do. They will do nothing. They will say anything that will
deliver them the sorts of things they think they will need to create the
outcomes that Western Australians deserve from a government. They are like the
Goldilocks of politics. Whatever we serve up is either too hot or too cold; it
is never just right.
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