Vic: Housing probe should look at rural/regional areas: Brumby

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Vic: Housing probe should look at rural/regional areas: Brumby

MELBOURNE, Aug 17 AAP - The federal government's inquiry into first home ownershipshould include a stronger focus on regional Australia, the Victorian government said today.

Victorian Treasurer John Brumby has written to his federal counterpart Peter Costelloon behalf of state and territory leaders calling for the Productivity Commission Inquiryto investigate whether actively attracting people to move to regional Australia wouldimprove housing affordability.

The letter was expected to be delivered to Mr Costello today.

"If Peter Costello is serious about finding a solution to this problem, then the termsof reference must be widened to include a stronger focus on development outside our capitalcities," Mr Brumby said.

"Large parts of regional Australia have the capacity to absorb population growth andin these areas housing is both available and affordable.

"Therefore it would seem sensible that there be a full investigation of measures thatcould be taken to encourage population growth in rural and regional areas."

Mr Costello, who today had not received the letter, said the inquiry would be lookinginto land release policies.

"One of the reasons we are having an inquiry is to look at land release policies, itmay well be that more land could be released and that would be available for first homebuyers," he told reporters in Melbourne today.

"The states are in charge of land release policies.

"We need to have an inquiry to get a fix on why land isn't being released, what canbe done to bring more on the market.

"I think it will be a positive thing if we can get some of the facts out, work outwhat is causing the difficulty at the moment and see if we can overcome those barriers."

AAP kh/gfr/cjh/jlw

KEYWORD: HOUSING