ABSTRACT
This chapter presents case study which highlights the incorrect assumptions upon which the program was based and the lack of attention to program implementation. Federal government policy, albeit Labor policy, had established a policy regime which was driving up the cost of housing and at the same time reducing state government fiscal resources. The commitment to a secondary mortgage market in Labor Party policy was defeated on these grounds. Housing is seen as a difficult area to work in because so many of the arguments about housing are economic arguments. This brings housing officials up against the central coordinating departments of Treasury, the Department of Prime Minister and Cabinet and the Department of Finance. A federal government sponsored institution would have greater authority in financial markets and would be more efficient than smaller state institutions. Attention needs to be focused more sharply on the role that the treasury plays in the formulation of housing policy.
