Opposition plans to sell Homeswest stock 'unrealistic'

Housing Minister Jim McGinty says the Opposition's plans to sell off huge amounts of Homeswest housing stock are 'unrealistic' and a poor attempt at political one-upmanship. 

Mr McGinty said the proposal outlined at the weekend was based on a State Government scheme that was already in place - but the Liberal proposal was currently impossible to implement. 

"Last month, Homeswest's 'Right Move' scheme began operating - an initiative that offers tenants in selected areas the opportunity to buy their rented homes," Mr McGinty said. 

"Applicants are offered financial assistance and the revenue generated from the scheme will be used to boost Homeswest's rental housing building program. 

"Just over a month later, the Liberal Party announces that it would create a 'Right to Buy' scheme - which, apart from having a very similar name, also promises financial assistance and earmarks the proceeds for further rental housing." 

Mr McGinty said, however, that the Opposition's proposal contained some very serious flaws. 

"They have promised to offer big discounts to buyers when it is well-known that the Commonwealth-State Housing Agreement prohibits the sale of public housing below market value," he said. 

"Even if it could offer discounts, the Opposition has also conveniently ignored the fact that four out of five Homeswest tenants are on a pension or some other form of benefit and could not support a housing loan - leaving a maximum of 6,000 people who could afford home ownership. 

"With the need to sell up to 2,000 homes annually to meet its claimed revenue target of $50 million each year, the Opposition would soon run out of prospective clients.

"The Opposition would also be selling off large amounts of properties, but because these would be heavily subsidised the revenue would only fund replacement of around a quarter of these homes - putting more people on Homeswest's waiting lists. 

"The Liberal package lacks vision and is simply a proposal to indiscriminately 'flog off' public assets," Mr McGinty said.