Housing Strategy

IN CASE OF DISASTER

Reaction Plan

In the event of the housing bubble collapsing and a significant correction in the cost of housing in Australia, we would support a limited program of quantitative easing similar to what has been suggested by former NSW Treasury secretary Percy Allan.

This would boost Australian exports by making the Australian dollar more competitive.

It would also provide the funds to pay for major infrastructure projects and to provide financial relief to mortgage holding single property owners who had bought before a particular date in the event that they end up holding bank debts that are more than their properties are worth.

However, it is not proposed that public money is used to directly bail out banks or property investors.