Shadow Minister Media Releases
Homeowners Should Have Been Protected Years Ago (25/03/2009)
After knocking back legislation to protect homeowners equity when they are forced to sell, the NSW Labor Government will now adopt Coalition legislation calling it their own, Shadow Minister for Small Business, Don Page said today.
“In the meantime thousands of NSW property owners have not had the protection they deserve by ensuring that their properties are being sold at market price when they have been forced to sell,” Mr Page said.
“The failure of the State Government to act earlier is even more disgraceful given that the legislation went through the Lower House in 2001 with bipartisan support but never became law because it did not pass the Upper House in time prior to an election,” he said.
The legislation, originally introduced by Nationals frontbencher Don Page in 2000 was designed to protect homeowners’ equity when they are sold up by financiers by ensuring the property is not sold at less than market price.
“I reintroduced the legislation last year but the NSW Labor Government voted it down – it’s a disgrace,” Mr Page said.
“The NSW Labor Government cares more about spinning the issue to suit themselves than they do about struggling homeowners.” Mr Page said.
“In NSW the temptation for financiers is to sell assets to ensure their own debt is covered with little regard for the remaining equity held by the borrower.”
“By ensuring properties are sold at market price the legislation protects the borrowers equity,” he said.
“Currently in NSW homeowners’ equity can be sacrificed. My legislation would have changed that.
“The hypocrisy of this State Labor Government of introducing the same legislation that they voted down last year is a disgrace. Especially when at the time the Reserve Bank estimated 40,000 homeowners in NSW were under mortgage stress.
“That number would have escalated dramatically in the last 10 months,” Mr Page said.
“NSW homeowners needed the State Labor Government to provide this protection when they had the opportunity last year.
“Queensland and the Northern Territory have legislation similar to that introduced by me on behalf of the Coalition.
“It is disgraceful that Labor have delayed this important protection for struggling homeowners. The Government just wants to re-badge my legislation and re-introduce as its own,” he said.
