PM - Friday, 24 April , 2009 Reporter: Alexandra Kirk

LISA MILLAR: According to the Prime Minister all good things come to an end.That was how Kevin Rudd responded yesterday when pressed about delaying the end of the boosted First Home Owners Grant.That big boost may still finish at the end of June, but the Government is hinting that something a little less generous may take its place.

From Canberra, Alexandra Kirk reports.

ALEXANDRA KIRK: Bank managers are flat out processing a flurry of loans from first home buyers with the uncertainty over whether the Federal Government will extend the more generous First Home Owners Grant beyond the current used-by date of the 30th of June. While the fillip to the construction industry will continue over the next 12 to 18 months - because first home buyers only have to have signed a contract by the end of June - many are worried about a rapid slump. When asked what happens next - this is how Kevin Rudd chooses to answer.

KEVIN RUDD: All good things must come to an end.

ALEXANDRA KIRK: That infuriates the Opposition, which is demanding a categoric yes or no. But today the acting Treasurer Lindsay Tanner gave more of an insight into the Government's thinking.

LINDSAY TANNER: It's due to end on June 30th and therefore the level of the grant to return to its normal level, that's the position that prevails as things stand at the moment. I can't speculate on whether or not we may choose to modify that, that'll be something that people will have to wait until the Budget to see.

ALEXANDRA KIRK: The Housing Industry Association wants the Government to put an end to all the speculation.

RON SILBERBERG: It probably would be desirable that the Government clarified the situation for first home seekers at the earliest opportunity. It was expected to do that in the Budget, it might be prudent that it brings forward an announcement.

ALEXANDRA KIRK: The Association's executive director Ron Silberberg has been lobbying the Government to at least retain the $21,000 grant for newly built homes. He says that's what stimulates the economy and creates jobs.

RON SILBERBERG: Our estimate is that if the Government retain the $21,000 grant for new housing and reverted to a $7000 grant on established, we would generate an extra 15,000 jobs in the housing industry and in manufacturing and service sectors.

ALEXANDRA KIRK: And that option's been left open by Mr Tanner.

LINDSAY TANNER: We're not going to have a first home owners grant at the level that it's been forever because it was put in place to deal with a specific sort of economic circumstances. But the question on exactly how and when that exit occurs is something that we will be addressing.

PM - Housing help may continue

First Home Loan Specialists Comment

An extract from the transcript of story on the ABC's PM Program.

And so the plot thickens. The Federal Government is on record one day indicating that all good things must come to an end and the next day it suggests that well it might end but not all of it. I agree with HIA representative that an announcement needs to be brought forward.

I do not hink they have to announce details of what they propose to do but just indicate in what capacity the First Home Owners Grant will continue if at all.

Greg Brierley
Principal
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