The Property Council of Australia has expressed its disappointment at the Federal Coalition’s decision to oppose passage of the Australian Business Investment Partnership (ABIP).
Property Council Chief Executive, Peter Verwer, said ABIP was important to mitigate the impacts of the global financial crisis on the domestic economy.
“It is a blow to our industry and the broader economy that ABIP has not received the Coalition’s backing.
“It's very disappointing that the Coalition has decided to reject ABIP without outlining an alternative.
“The risk we face from the withdrawal of foreign funds from Australia is very real and very pressing.
“We need this contingency measure even more now than we did two months ago.”
Mr Verwer said ABIP would inject much needed stability and confidence into the Australian economy.
“It’s a fact that Australia has a significant exposure to foreign lenders, much of this is in loans to commercial property.
“It’s a fact that foreign banks are winding back their exposure to the Australian property market, repatriating capital at the bequest of their new owners – foreign governments.
“It’s a fact that Australian banks are simply not able to deliver sufficient funding to bridge the gap left from the mounting withdrawal of foreign funds.
“And it’s a fact that property is the nation’s collateral. It underpins loans throughout our entire economy – small business, mums and dads and superannuation wealth.
“It’s a fact that everyone will ultimately be impacted if we don’t take measures now to avoid an imported credit crisis from undermining local property values.
“Property values should be set by local supply and demand fundamentals not the priorities of foreign financiers and governments.”
For further information:
Peter Verwer, Chief Executive, Property Council of Australia – 0407 463 842
Roberto Fitzgerald, Executive Director International & Capital Markets – 0411 549 248