Jonathan O’Dea, Member for Davidson, has condemned the NSW Labor Government for voting down legislation to help ensure struggling homeowners receive market price for their homes if a bank or financier sells them up.
“At a time when the Reserve Bank says 40,000 homeowners are under serious mortgage stress, it is astounding the State Labor Government recently voted against this legislation, especially when they expressed support for identical legislation few years ago,” Mr O’Dea said.
Recent research data from the Insolvency and Trustee Service shows that while Sydney’s west accounts for 40% of all bankruptcies, relatively affluent suburbs, including in Sydney’s north, are also suffering under financial pressure. St Ives ranked 15th on the list of the suburbs that reported the largest jump in insolvencies from 2007 to 2008. The number of bankruptcies in the Northern Beaches and North Shore regions rose by 10.4% and 15.8% respectively.
“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,” Mr O’Dea said.
“Currently in NSW homeowners’ equity can be sacrificed. This legislation would have changed that. Queensland and the Northern Territory already have legislation similar to that introduced on behalf of the Coalition.
“It is disgraceful that Labor has abandoned struggling homeowners at a time when they desperately need protection.
“The Government just wants to re-badge this legislation and re-introduce it down the track. The NSW Labor Government cares more about spinning the issue to suit themselves than they do about struggling homeowners,” Mr O’Dea said.
For further information, please call Jonathan O’Dea on 0418 241 500.
