Bringing hope to low-income earners and the unemployed

Australia faces a crisis in housing affordability. The only solution is for the Federal Government to get into the home loan business.

 I propose the formation of a new political party to promote this idea. People on low incomes spend the bulk of their money on rent. Many are in casual employment or unemployed. They will never be able to afford to save for a home deposit. The supply of public housing is limited. (I have written elsewhere about the plight of casual workers - "Job slaves live in eternal limbo", Sydney Morning Herald 17 May 2005.)

 The solution is for the Government to provide no-deposit loans. Repayments would be adjusted on a flexible basis to allow for fluctuations in income. The Government alone can afford to be forgiving and patient with those who are in genuine distress. True, some people will never be able to pay off their home loan. In these cases their loan will remain an asset on the Government's balance sheet, one that still brings a financial return.

The simple need for shelter, security, and dignity, is too important to leave to market forces manipulated by those who benefit from ever-escalating house values. (The major banks, for example, are averaging $6bn each in profits this year.)

 An escalating housing market is an unfolding tragedy for all of us. If you already own your own home you face the eternal buying/selling merry-go-round if you want to sell and move on. You might sell for a good price, but will the market run beyond your reach when you come to buy?

 There are many steps the Government can take to dampen housing prices. This is not the place to go into details, but discouraging foreign investment is one measure. It might be possible to look at the 99 year lease/purchase model as another measure. Around the world there are many alternative programmes for community housing and subsidised self-build projects. We need to look at all of them and learn from them.

We can do it. If you want it. If you want it enough. Our current leaders will not do anything about it. We need to get people into Parliament who will do something about it. We need to take control for ourselves.

 The clear thing is that the market must be dampened. Even people who own their homes are under intense financial pressure. As a society we need to get to grips with the problem of housing affordability now and take practical measures.

 The banks and other powerful interest groups will hate my proposal and fight it. The major political parties are already trying to change the rules to make it more difficult for special-interest parties to exist and get elected to Parliament. To fight them we need to be clever and resourceful, but I believe that people power can win this one.

 The people may govern themselves in any way they choose. If enough of us unite together for the cause of housing affordability and Government no-deposit loans then we can get people into Parliament and make it law.

 I ask you to join me in this. Clive Palmer's party has four seats in Federal Parliament and one ally. That gives him serious bargaining power in Canberra. Why can't we do better, for ourselves,  in a cause that concerns us all?

 Of course Mr. Palmer had a lot of money to throw around for his campaign. It was his own money. Fair enough. Good luck to him. Why don't we unite to show him what people power can accomplish?

This is a beginning. I am appealing for expressions of interest and/or donations from anyone out there who wants to become involved. All donations are welcome. Any donation of $5 or more will guarantee you a ticket as a Founding Member when I have enough numbers to get the Party registered. With enough support and enough money the Housing Affordability Party can become a reality and it can win seats in Parliament. I will give all my time and energy to achieving this objective between now and the next election with your help.