Interview with Politics Now on Sky News

Subjects: Lending standards, NSW Liberal Party

E&OE………

Tom Connell

Joining me live is Liberal Senator Andrew Bragg, who... You've got assistant, somewhere in there, housing.

Senator Bragg

Thanks, Tom. How are you?

Tom Connell

I assume it's that or not? Something similar.

Senator Bragg

As we discussed last time, close enough. But it is very important that younger people can get access to a mortgage because you can't get a mortgage, you can't get a house.

Tom Connell

What would you change on that exactly? What's your early indication on what you might do?

Senator Bragg

We're going to have a look at the rules that banks have to apply. There are a lot of rules here, and they are, I think, very expensive and cumbersome, and they may be hurting the ability of first home buyers to get that elusive first mortgage. We'll also look at the 3% buffer. We'll look at the impact of HECS debts on the ability of people to get loans. I think it's quite an important area.

Tom Connell

The RBA has control at the moment. It's important to make it independent because when you look at what happened in the GFC, they didn't have the controls on housing we do, and the whole system collapsed. You might go, gee, it's bad they don't let people in, but it's good that it's so stable?

Senator Bragg

We want to have unquestionably strong banks. We don't want to weaken the prudential standards, but we want to look at whether there are any avenues to tilt the scales in favour of first home buyers because the deposit cliff is massive. Serviceability can be very difficult. You never hear the government talk about these issues, but for many Australians, these are the issues that are facing them.

Tom Connell

Finally, on this, before I throw it over to the panel. Refinancing, there's still a buffer on that. Now, that seems crazy because that loan is already in the system. You're not making it less or more stable. Is there a case there to just say, if you want to refinance, there doesn't have to be any buffer at all? It's just up to that bank to assess you how they'd like to.

Senator Bragg

Look, to be brutally honest, we're much more focused on helping first-home buyers. First-home buyers is going to be the key part of our policy because the Australian Dream is about people. It's not about institutions, big super funds, BlackRock, Vanguard…

Tom Connell

So, someone out there struggling with a loan, don't worry about them?

Senator Bragg

No, we're looking at mortgage offsets. There'll be a policy for them as well. But we want to really make sure that first-home buyers can get a bite of that Australian Dream.

Andrew Clennell

Wasn't that your former government that tightened the lending rules? You probably made it harder for first-home buyers.

Senator Bragg

Well, I mean, APRA administer these laws, and we have the responsible lending laws in place, which Labor put in place some years ago. So we're going to look at all these component parts.

Andrew Clennell

Is it true to say that what you want to see at this election is the Liberals saying, we are the Party of home ownership, Labor has given up on that dream?

Senator Bragg

That's right. I think if you can't get a mortgage, you can't get a house. Now, the Housing Ministers in the Labor Government never make this point, but I think it is key to people's individual experience. I've heard from people who could get a loan, but they can't because of their HECS debt.

Andrew Clennell

Well, they're trying to get equity in the system, and you won't pass that bill, right? Where you can have some government equity assistance.

Senator Bragg

The government equity schemes, it's a dog of an idea. I mean, even the States have repealed their own policies. If this was important to the government, they would put it to a vote. This was the centrepiece of their last election launch two and a half years ago; put it to a vote, have a debate.

Cameron Reddin

On the issue in New South Wales, the Party missing a pretty simple deadline for getting a nomination form in for councils. Is there a more systemic issue here? We had the Victorian Branch last year miss a deadline for preselections and arguing around boundary lines, I should say, for redistributions. Is this a more systemic problem?

Senator Bragg

Look, I don't think so. This was a calamity. But I do think that the New South Wales Division has demonstrated competence in relation to federal preselections and in relation to fundraising. So I think it's important we don't throw the baby out with the bathwater here. Let's see what the review has to say, but I think we've got to be very careful.

Cameron Reddin

Does Don Harwin need to go, the President?

Senator Bragg

No. I think that he has demonstrated over a long period of time that he has great information, great knowledge and has been able to steward important processes in his life. And I think that he and the Executive can ride the ship.

Andrew Clennell

You're kidding, aren't you? I mean, he stuffed this up just as much as Richard Shields, if not more. So why shouldn't he go? Apart from being a fractional mate of yours.

Senator Bragg

Look, I think the Executive should be given the opportunity to right the ship here. This was an administrative calamity. There's now going to be a review. I think it's very important that we don't throw the baby out with the bathwater because the Division has run preselections in key seats.

Andrew Clennell

Throw the baby out with the bathwater. Your own Federal Leader is thinking about taking over the branch, isn't he?

Senator Bragg

I don't think there's a strong case for a massive intervention here. I mean, the Division has already had preselections in places like Gilmore, Dobell, Bennelong. The Division is raising money.

Cameron Reddin

It could be handing over a dozen councils, though?

Senator Bragg

Look, no question. That is a disaster. But I think you've got to maintain focus on what are the key federal implications here. I think an ongoing civil war inside the Division is not going to be in the best interest of the Party.

Andrew Clennell

So just have an incompetent State Party run part of your federal campaign?

Senator Bragg

I think you've got to see what the review says, and then you can make a judgement. But I think rushing to an answer here is not going to be productive.

Trudy McIntosh

Can I ask you on federal preselections, you said they're going well. There's key seats that still don't have someone. Think if you’re trying to win Teal seats, Mackellar, Warringah, other seats against Labor Robertson, Paterson. What's taking so long?

Senator Bragg

There's still quite a few to do, but we've done Dobell, Gilmore, Bennelong. Those are all key seats. On Saturday, they did Mayo in South Australia. They're not being told that they have to have a massive intervention. I think the reality is the division is working through them in an orderly way. This is a major problem, the council issue, it shouldn't be pushed under the carpet, but I think we've got to look at what are the Federal and State implications.

Cameron Reddin

So Richard Shields goes. Is there anyone else that needs to go? Or if you found yourself in this situation, are you happy for the same people that led you to this situation minus one to now try and fix it?

Senator Bragg

Well, let's see what the review says. But if you put the paperwork into the Electoral Commission, that is an operational issue. That's not what the board of directors does. But if there are other people that should go, then let's see what the report says.

Trudy McIntosh

What's your hunch as to what went wrong?

Senator Bragg

Well, I think the deadline wasn't met. You need to put the paperwork in by the time...

Trudy McIntosh

This was someone at a lower level who just forgot to put in a bit of paper. That's where this…

Senator Bragg

It was clearly mismanaged…

Cameron Reddin

It's not mailing a letter though…

Senator Bragg

It was clearly massively mismanaged by the Secretariat. Let's see what the report says. I don't work there. But looking at it as an old internal auditor, where you look at risks and controls, that's an operational matter.

Tom Connell

Andrew Bragg, thanks for your time.

[Ends]