Fed: Foreign workers could help solve housing problem: minister

AAP General News (Australia)
04-23-2008
Fed: Foreign workers could help solve housing problem: minister

By Cathy Alexander

CANBERRA, April 23 AAP - Foreign construction workers could be brought in to help solve
Australia's housing affordability problem.

Housing Minister Tanya Plibersek spoke positively of the proposal in a speech to the
National Press Club, in which she warned a shortage of skilled labour could frustrate
the government's plan to build 50,000 cheap houses in the next five years.

"I am very concerned about the skills shortage in the building industry and in related
fields. I have been for some time," she said.

"I believe that training extra Australian workers and potentially filling the gap in
the short term are both important solutions."

The government is considering a Housing Industry Association (HIA) proposal for a special
visa scheme for thousands of overseas construction workers.

The government is also considering allowing more seasonal workers into the country,
with a focus on the Pacific region.

The housing minister pulled no punches about the gravity of the housing situation in
her speech, saying high house prices and rents were having serious economic and social
effects.

She spoke of families having to move constantly, people unable to move to take up jobs
because they could not find a place to live, and pensioners living in sub-standard conditions.

"This housing affordability problem has been barrelling down the highway at us like
a runaway road train for several years," Ms Plibersek said.

And she warned the problem would be here for some time.

"I know that people are having a really tough time today. I wish I could tell them
that there's an overnight solution ... but it would not be honest to say that," Ms Plibersek
said.

The government's plan to bring down housing costs includes building 50,000 cheap homes
for the rental market by offering tax credits to investors, $500 million to lower local
fees and taxes on new housing, and a saving scheme for prospective first home buyers.

Ms Plibersek said these measures would have an impact only in the medium to long term.

She sought to reassure home owners that increasing the supply of housing would not
cause house prices to fall. She said the market was divided into sub-markets and increasing
supply in one would not significantly affect the others.

"We don't operate in one housing market in Australia," she said.

AAP ca/sb/jnb/cdh

KEYWORD: HOUSING

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