Now some very important things happening in our country. The Housing Australia Future Fund. To me, housing is the biggest issue we face, Paul.
Senator Scarr
Absolutely and can I just remind your listeners. In 2024, we built 177,000 dwellings. Compare that to 2014 – 10 years ago, when the population was 3 million less, we built 219,000. So over 40,000 more homes were built 10 years ago. So, it just says everything you need to know about the housing crisis, I think.
Tim Webster
It sure does and some people will take advantage of it. I think it comes into effect today. You can only have 5% deposit for your home. The government will support you. Now that sounds like a nice, altruistic idea, but I just worry about the future of house prices and ability to pay all of those sorts of things and I don’t like to be negative about it, but your thoughts?
Senator Scarr
No, I agree, Tim and it does concern me, especially young people buying their first home. We don’t want them to be under unreasonable pressure in terms of debt, mortgage repayments. Inflation did go up again last month. It’s now up to 3%. That’s at the top range of the Reserve Bank’s target inflation rate. So you just don’t want people under an unreasonable debt burden in terms of their housing costs.
Tim Webster
No, you don’t. But I can understand how that may be an attractive proposition for people. But the only thing I would say is to really do your research and your homework before you take it up.
Senator Scarr
No, absolutely. That’s really good advice and frequently, I look at these housing issues, and I think about the position I was in when I bought my first home and it was so much easier Tim, it was so much easier and I really worry about our children and grandchildren.
Tim Webster
Yeah, you mentioned inflation. So up again, and you know, the economists say, well, that means there may not be any movement in interest rates, but there may be one on Melbourne Cup Day, which I think that’s the next time. Have they got one before Melbourne Cup Day, Paul?
Senator Scarr
I’m not sure, might be Melbourne Cup Day.
Tim Webster
I think it might be Melbourne Cup day and see that plays into the whole thing. Housing, mortgage rates, what you borrow. I mean, it’s really important that people do their homework, just in case it goes pear shaped and interest rates go up, God forbid and then you’re between a rock and a hard place, aren’t you?
Senator Scarr
Oh, absolutely. So people really need to do their homework in relation to these issues and inflation is one of the biggest issues we’ve got in this country and electricity prices up by over 30%, food up 16%, health costs up 18% and it’s really – we’re still in this cost of living crisis.
Tim Webster
I’m noticing a bit of a charm offensive from the Prime Minister, lots of lovely photos of him with the President and Melania and visiting with the King and it’s all very nice. But the really important thing is this meeting on October 20, and I’m reading this morning that he might be going to use our abundance of minerals as some sort of bargaining chip with the President. Now, on the face of it doesn’t seem like a bad idea.
Senator Scarr
Well, it’s one of the great advantages we have in terms of the blessings we have in this country with minerals and a lot of these minerals are in great demand. So minerals like copper, and also some of the less abundant minerals, from a world perspective. We’ve got lots of them here, including uranium.
Tim Webster
What would your side of politics like to see come out of this meeting on October 20? Let’s leave aside the charm offensive. AUKUS is one of course. What else would you like to see come out of that meeting?
Senator Scarr
I think there’s, there’s a few really important issues that need to be discussed at that meeting between the Prime Minister and President Trump. That includes AUKUS, guarantees with respect to AUKUS, but also tariffs on steel and copper. The United Kingdom managed to negotiate those down from 50% to 25% so from my perspective, I think that’s absolutely crucial, because those are key industries for Australia. So we want to see those come down and we also want to get some comfort in terms of the exports of pharmaceuticals to the United States. So President Trump imposed a 100% tariff in relation to pharmaceuticals. So we want to Australia to get the best possible deal we can, Tim.
Tim Webster
Well, a lot will be said between now and then. It’s about three weeks away. Great to talk to you. Have a good week.
Senator Scarr
Thanks. Tim.
