EMBARGOED UNTIL 3 P. M. CHECK AGAINST DELIVERY
SPEECH BY THE PRIME MINISTER
GMI FIVE STAR DESIGN RATING LAUNCH
MELBOURNE, 29 OCT'OBER 1984
Ladies and Gentlemen,
I have particular pleasure today in formally launching the Five Star Design Rating.
The Rating system must stand as one of the world's most
advanced design guide--for homes. Its award will be a
great incentive to builders and its presence a real
source of-reassurance for home buyers. We can be justifiably proud that it has been developed in
AustraliA. it is particularly fitting that the Five Star Design
Rating be launched at this time a time of great excitement in the houIsing indust ' ry in this country. No
other industry could reflect better the recovery that
has taken root in Australia over the past year.
Activity in the housing industry has rocketed out of the worst recession for twenty years in 1982-83 to a level which has been most satisfying to us all in 1984.
In April 1983, the Minister for Housing and
Construction, Chris Hurford, announced it was the
Government's objective to see the number of housing
commencements increase from the trough level of 105,000
in 1982-83 to an annual rate of 130,000 to 135,000 by
the second half of( K1983-84. In the event, there were
over 136,000 commencements in 1983-84 an increase of
over 30 per cent.
By the second half of that year, commencements were
growing at an annual rate of over 146,000 way above
target. It was even more pleasing that State figures on
housing commencements suggested the housing recovery was
strongest in those States where the recession hit
hardest in the previous year.
1984-85 will be another good year for the housing
industry. The latest forecast of the : ndicative
Planning Council is for around 345,000 commencements
representing about 95 per cent of the Th. dustry's
capacity. This is a decisive turnaround from the bad
times of unemployed builders and substantial unused
capacity in the industry such a short time ago.
As a result of the turnaround we have achieved in the
housing sector thousands of Australians have been able
to realise their dreams of home ownership. Great
numbers of others have found employment in the industry.
This magnificent recovery in the housing industry i. s a
direct consequence of the Australian Labor Government's
policies for economic recovery.
our prices and incomes policy, coupled with responsible
fiscal and monetary policy, has boosted confidence,
provided greater certainty to those contemplating major
purchases and enabled a cut in inflation and
inflationary expectations. This in turn, has~ permitted
significant cuts in most interest rates including a
fall of 1 per cent in mortgage rates over the life of
this Government.
This general policy approach has been complemented by a
number of initiatives tailored specific-ally to the needs
of the housing sector.
There has, for example, been the First Home Owners
Scheme a vitally important initiative in our overall
efforts to got the housing industry cn the move. The
scheme was designed especially to assist young first
home buyers bridge the deposit gap and meet repayments
in the first tough years of a home loan. Young people
are usually among the lowest income earners and least
wealthy in. the community and face an enormous hurdle in
buying their first home.
Since-its introduction in October 1983, the First Home
owners Scheme has been a widely acclaimed success. it
attracted no fewer~ than 90,000 applications in 1983-84
and over 55,000 first home buyers were assisted.
Expenditure on the scheme in 1983-84 was $ 141M, some 89
per cent more than originally budgeted.
Continuing recovery in the housing industry and the
continuing popularity of the scheme should see another
large increase in expenditure in 1984-85. In fact, we
estimate that spending on the First Home. Owners Scheme
will increase by almost 90 per ceht to $ 265M this year,
assisting a further 80,000 new applicants into their
first homes and providing ongoing repayment as~ istance
to last year's applicants.
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In addition, Commonwealth contributions under the
Commonwealth-State Housing Agreement to publi:: housing
programs have increased massively in our first two
BUdgets. our first Budget lifted these contributions to
per cent above the level of Eunding provided by our
predecessors in 1982-83. This was followed by an
increase of almost 10 per cent in our 1984-85 Budget.
That our expenditure on public housing should have
increased so sharply at a time of overall fiscal
restraint reflects the depth of our concern for the
housing needs of disadvantaged people. Unlike our
predecessors we are not prepared to discount or ignore
those in need.
You would all appreciate that the housing recovery has
been an engine of growth in th& Australian economy over
the past year. Private investment in dwellings leapt by
a massive 23 per cent over the course of 1983-84,
compared to growth of 10 per cent for the economy as a
whole. In the year to August 1984, total employment
grew by 3.5 per cent, while empl. oyment in the
construction industry grew by 9.1 per cent the highest
annual growth rate recorded for any of the major
industry groups.
Those who have recently found jcb's in the housing
industry will spend their incomes on a wide variety of
consumer goods in the many citiEs and country centres
sharing in the housing boom. The materials suppliers
bricks, mortar, timber, class, ceramics and so on have
also felt the strength of the upturn. The housing
recovery will also bring in its wake increased " big
ticket" consumption expenditures by new house owners
to properly furnish and equip the home.:
nd these separate " multiplier" effects go on, adding
up to a substantial boost to the economy generally
and the creation of many thousands of new jobs right
* across the board.
The housing recovegy confronts us directly with the need
for a more energy-conscious approach to dwelling
construction. In Australia, dwellings consume about 14
per cent of all energy used in the community. With the
relative cost of energy subject to unpredictable
increases, there are therefore great benefits to the
community if alternatives can be found which result in
less energy being consumed in housing and other energyintensive
areas.
For example, it is obvious that the design and
construction of houses should-be related to, and take
account of, local climatic conditions. Yet climatic
requirements often seem to be overlooked by designers
or the solutions which designers choose have little
appeal to those who will have to live in the dwelling.
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The housing indi'stry faces a challenge to provide
economic, low energy homes having high standards of
environmental comfort and amenity. The~ e homes,
however, should still retain the quality, and variety of
dwellings for which Australian housing is known. The
five star design rating will encourage builders to meet
this challenge.
It is against this background of strong support for
energy conservation, and for its reflection in
Australian housing design standards, that the Government
welcomes new initiatives of the kind we see in the
manual on the design and construction of energy
efficient homes being prepared by the CMI Council.
Today, I have much pleasure in releasing the first
sections of the manual, which are directed specifically
towards the building industry.
I also have another pleasant task to perform. As a
token of the appreciation of the Gi'liI Council for the
work in developing the Five Star DZ sign Rating, I have
pleasure in presenting a letter of appreciation from the
Chairman and Directors of the Council to just five of
the many who have worked towards the success of this
project: They are-Dr Angelo Delsante of CSIRO Divison
of Building Research
Associate Professor John Ballinger
of the Solar Architecture Unit at the
University of New South Wales
Mr George Millar of Glernville Homes
Mr Digby Forbes of Australian Building
Systems Appraisal Council
Dr Lex Blackey of CSIRO Division of
Building Research
Congratulations to all of you for your-contribution to
this project.