❓ Mrs. Hayden questions Premier McGowan on the impact of his government's policies on mortgage stress in WA. McGowan deflects blame, citing the previous government's financial mismanagement and the banking royal commission's impact on credit availability.
AnsweredQoN 265Legislative Assembly
QuestionView source ↗
LIVING WAGE PROPOSAL —
FEDERAL LABOR POLICY
265. Mrs A.K. HAYDEN to the Premier:
I
refer to recent research that shows more than 141 000 homes or one in three
mortgage holders in Western Australia are suffering from mortgage
stress, an increase of 1.5 per cent from last month, and a 65.8 per cent
increase since the Premier was elected. Will the Premier finally concede that
his cost-of-living increases, among other policies, have reduced spending in
the economy and have reduced the ability for households to meet all their
cost-of-living pressures and expenses; and, if not, why not?
FEDERAL LABOR POLICY
265. Mrs A.K. HAYDEN to the Premier:
I
refer to recent research that shows more than 141 000 homes or one in three
mortgage holders in Western Australia are suffering from mortgage
stress, an increase of 1.5 per cent from last month, and a 65.8 per cent
increase since the Premier was elected. Will the Premier finally concede that
his cost-of-living increases, among other policies, have reduced spending in
the economy and have reduced the ability for households to meet all their
cost-of-living pressures and expenses; and, if not, why not?
AnswerView source ↗
I will reiterate to the house that
it is a verifiable fact that the increase in electricity and water in our first
two years in office was less than half the increase in electricity and water in
the first two years of the Liberal and National Parties in office. That is a fact.
Obviously, we confronted a very difficult financial situation, the worst
financial situation ever confronted by a new government in the history of Western
Australia and one of the worst financial situations ever confronted by any
state government in the history of Australia. That is what they left us. That
is another verifiable fact.
Mrs A.K. Hayden interjected.
The SPEAKER : Just listen!
Mr M. McGOWAN : The member for
Darling Range interjects inanely, but that is the truth of the matter.
Obviously, the government has had to deal with that. I think the record is
there with the recent improvement of the credit rating, the broad commentary
across the nation that this government is getting Western Australia back on
track and that our financial management has been nothing short of outstanding.
Mrs L.M. Harvey : Thanks to
the feds.
Mr M. McGOWAN : What was that?
Mr P.C. Tinley interjected.
Mr M. McGOWAN : I did not
think she would, Peter.
That is the situation we have had to
confront. Obviously, we feel a great deal of sympathy for people in the housing
market. I want to discuss a couple of things. Firstly, the banking royal
commission. The lead-up to the banking royal commission has obviously impacted
credit availability.
Dr M.D. Nahan interjected.
Mr M. McGOWAN : Honestly,
Leader of the Opposition, just keep quiet.
Dr M.D. Nahan : Take
responsibility.
The SPEAKER : Leader of the
Opposition!
Mr P.C. Tinley interjected.
The SPEAKER : Members!
Minister for Housing! Leader of the Opposition, I have warned you three times;
I call you and the Minister for Housing to order for the first time.
Mr M. McGOWAN : We need only
talk to anyone in the housing industry and they will tell us that the
availability of credit is a significant issue in Western Australia and
Australia. I think the impact of the banking royal commission is an unintended
consequence but that consequence is what has occurred. I think in the midyear
review, we announced a significant expansion in the loan book of Keystart to
try to assist people to take advantage of Keystart to obtain finance to try to
support the housing industry in Western Australia.
The second thing about the housing
industry is this. Obviously, over the course of the boom, which ended in 2014
or 2015, there was a significant expansion in the availability of housing
across Western Australia. Since then, our population growth has not matched the
supply provided to the market place and that, of course, has impacted the
housing market. However, that is not directly on the point of the question the
member raised but it has significantly impacted what has occurred.
Obviously, we will be bringing down
a budget soon, when I think people will see the fruits of good financial
management. In the third year of this government —
Dr M.D. Nahan interjected.
The SPEAKER : Leader of the
Opposition! It was not funny the first time.
Mr
M. McGOWAN : — they will
once again see a significant reduction in cost-of-living pressures compared
with —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr M. McGOWAN : — what
we saw in the third year of the last government.
it is a verifiable fact that the increase in electricity and water in our first
two years in office was less than half the increase in electricity and water in
the first two years of the Liberal and National Parties in office. That is a fact.
Obviously, we confronted a very difficult financial situation, the worst
financial situation ever confronted by a new government in the history of Western
Australia and one of the worst financial situations ever confronted by any
state government in the history of Australia. That is what they left us. That
is another verifiable fact.
Mrs A.K. Hayden interjected.
The SPEAKER : Just listen!
Mr M. McGOWAN : The member for
Darling Range interjects inanely, but that is the truth of the matter.
Obviously, the government has had to deal with that. I think the record is
there with the recent improvement of the credit rating, the broad commentary
across the nation that this government is getting Western Australia back on
track and that our financial management has been nothing short of outstanding.
Mrs L.M. Harvey : Thanks to
the feds.
Mr M. McGOWAN : What was that?
Mr P.C. Tinley interjected.
Mr M. McGOWAN : I did not
think she would, Peter.
That is the situation we have had to
confront. Obviously, we feel a great deal of sympathy for people in the housing
market. I want to discuss a couple of things. Firstly, the banking royal
commission. The lead-up to the banking royal commission has obviously impacted
credit availability.
Dr M.D. Nahan interjected.
Mr M. McGOWAN : Honestly,
Leader of the Opposition, just keep quiet.
Dr M.D. Nahan : Take
responsibility.
The SPEAKER : Leader of the
Opposition!
Mr P.C. Tinley interjected.
The SPEAKER : Members!
Minister for Housing! Leader of the Opposition, I have warned you three times;
I call you and the Minister for Housing to order for the first time.
Mr M. McGOWAN : We need only
talk to anyone in the housing industry and they will tell us that the
availability of credit is a significant issue in Western Australia and
Australia. I think the impact of the banking royal commission is an unintended
consequence but that consequence is what has occurred. I think in the midyear
review, we announced a significant expansion in the loan book of Keystart to
try to assist people to take advantage of Keystart to obtain finance to try to
support the housing industry in Western Australia.
The second thing about the housing
industry is this. Obviously, over the course of the boom, which ended in 2014
or 2015, there was a significant expansion in the availability of housing
across Western Australia. Since then, our population growth has not matched the
supply provided to the market place and that, of course, has impacted the
housing market. However, that is not directly on the point of the question the
member raised but it has significantly impacted what has occurred.
Obviously, we will be bringing down
a budget soon, when I think people will see the fruits of good financial
management. In the third year of this government —
Dr M.D. Nahan interjected.
The SPEAKER : Leader of the
Opposition! It was not funny the first time.
Mr
M. McGOWAN : — they will
once again see a significant reduction in cost-of-living pressures compared
with —
Mr D.C. Nalder interjected.
The SPEAKER : Member for
Bateman!
Mr M. McGOWAN : — what
we saw in the third year of the last government.
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