Building Victorian Jobs with
First Home Buyers Grants and Interest Rate
Cut
First
home buyer grants should be limited to the building of new
homes to maximise the employment potential of the taxpayer
grants, the Urban Development Institute of Australia said
today.
The
peak property industry body also called for Reserve Bank to
cut interest rates on Tuesday and spark an urgently needed
broad recovery and confidence in the property market to
maintain and protect thousands of jobs.
Executive
Director of the UDIA (VIC) Tony
De Domenico
said, "The property industry in Victoria directly employs
around 310,000 full time employees, contributes around 12 per
cent of the state's gross domestic product and $4.6 billion in
taxes to all tiers of government".
"Whilst we still
have population demand as a positive driver of the market, it
needs to be complemented with the first home buyer grant for
new housing and the interest rate cut".
Mr De Domenico
said, "Calls by the Real Estate Institute of Victoria to dump
the $19,500 first home buyers grant was ill conceived and
would lead to job losses in the current economic conditions".
"It is important
to move quickly to restore broad confidence in the property
sector, especially on interest rates, to address the issues of
affordability and assist families under the cost of living
pressures."
Mr De Domenico
said, "behind every new home stands the employment of
a range of tradespeople, employment networks of suppliers and
ultimately the retail sector with homes requiring white goods,
furniture and services."
"All of these
sectors need stimulating urgently as it takes at least a few
months for projects to be completed and the Reserve Bank
should be taking this into account".
"With the
building industry forecasting a further decline in Victorian
new housing starts, the retention of the first home buyers
grant, which should be just limited to the building of new
homes, will provide the Victorian Government with a strong
economic lever to maintain and boost employment in the
building and construction sector, a cornerstone of the State's
economy".
"There is a lot
of discussion about the car industry in Australia
which is important with politicians from all sides noting
its importance to maintain many suppliers of component
parts to protect jobs".
"The same conversation applies to the property and building
industry in Australia.
The new house and land package market is a major area
of economic activity for thousands of small businesses
across the State," Mr De Domenico said.
Media
Enquiries:
Ron Smith, Corporate Media Communications, UDIA (VIC)
- Mobile:
0417 329 201
