Liberals housing spokesman Richard Lewis has admitted that the Federal Fightback policy would have a serious impact on the provision of public housing for low-income earners in Western Australia.
Housing Minister Jim McGinty said Mr Lewis made the frank admission last night at a housing forum in Perth organised by the community housing organisation, Shelter WA.
"After intense questioning from the `floor', Mr Lewis said he did not agree with all the housing proposals contained in Federal Fightback," Mr McGinty said.
"That is entirely understandable when you consider that Dr Hewson and his colleagues propose to abolish Federal funding to the States for public housing construction - a cut of $70 million annually for Western Australia alone.
"At least Mr Lewis had the courage to admit that this would have a disastrous effect on Homeswest's housing construction program, which would in turn reduce public housing opportunities for Western Australia's builders."
Mr McGinty said Mr Lewis' admission was frightening when you considered that the WA conservative parties were pinning so much hope on the introduction of Fightback at a Federal level.
"Such a dramatic cut in funding for social housing would ensure that the Liberals would be unable to maintain the current level of public housing provided by the Lawrence Government through Homeswest," Mr McGinty said.