Howard refuses to regulate property spruikers

The Prime Minister has rejected calls for the property investment industry to be regulated by the Federal Government despite hundreds of complaints to consumer authorities in recent years. Seminar operators such as Henry Kaye have thrived as real estate is exempted from the federal investor protection regime and there is no specific law they can be charged with breaching.

The Prime Minister responded to recent calls for regulation from the Real Estate Consumers' Association with a letter stating that the Government's role will be restricted to urging the states to take more responsibility and establish appropriate regulation. Both ASIC and the Reserve Bank governor have called for federal regulation while state consumer protection ministers say they will keep lobbying the Federal Government to take responsibility.

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