The Suburban Land Agency's financial problems are proof that land prices in the ACT are too high, according to Canberra Liberals leader Alistair Coe.
Chief Minister Andrew Barr has rejected that assertion, as he maintained that there were affordable blocks of land for purchase across the territory.
The two leaders on Thursday responded to reports the Suburban Land Agency had gone cap in hand to the ACT government for a $50 million loan amid concerns its "dire" financial situation could delay development work on new estates.
Mr Barr's cabinet ultimately approved a $30 million lifeline, which the agency hasn't yet needed to access after its fortunes improved on the back of a recent spike in land sales.
Government documents showed that one of the factors behind the agency's cash flow problems was the high price of land, which had contributed to blocks going unsold.
That had the effect of "tying up" the agency's working capital - the money used to cover short-term expenses - which impacted cash flow and liquidity.
Mr Coe, who has put housing affordability at the centre of the Liberals' election campaign, said he wasn't surprised to learn the agency had until recently been struggling to sell blocks of land.
He put the blame squarely at the feet of the Barr Labor government, which he said effectively controlled the supply and price of land in the territory.
"They have priced so many Canberrans out of the housing market, and they simply can't sell the land they were seeking to," he said.
"We don't really have a market. The ACT government controls what blocks are released, they control the reserve, they control the price, they control every step of the process."
The Canberra Liberals have promised to released more land for detached housing if elected on October 17, but have refused to detail in which locations.
Mr Barr rejected Mr Coe's assertion that the ACT government was in control of land prices, saying they were largely set by the market. Individual valuers were responsible for setting the reserve price on blocks of land, he said.
The Labor leader said there were cheaper housing options in each of the agency's greenfield estates, in line with the 15 per cent affordable dwelling requirement.
He didn't appear concerned about the agency's financial problems when questioned on Thursday. Mr Barr said the oversupply of blocks for sale - the root cause of the agency's cash flow problems - was the result of a deliberate government policy of releasing land in excess of market demand.
