MINORITY REPORT BY AUSTRALIAN DEMOCRATS SENATOR LYN ALLISON

REPORT ON HOUSING ASSISTANCE

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MINORITY REPORT BY AUSTRALIAN DEMOCRATS SENATOR LYN ALLISON

Preamble

In November 1996 the Australian Democrats initiated this Inquiry into Housing Assistance in Australia. The Democrats believed that the model of housing reform proposed at the time by the Howard Government was not designed to address the growing housing crisis within the community. In addition, and in view of the breakdown in negotiations between the Commonwealth and State governments over the future of this reform, we believed that there needed to be a forum where all levels of government and representatives of both housing and community groups could present their concerns and ideas before major housing policy changes were undertaken by the Federal Government. While we endorse the majority report we would like to make the following additional comments.

Commonwealth-State Responsibilities

The Commonwealth State Housing Agreement provides as essential framework for the development of a national housing policy based on clearly defined proposals and specific outcomes. The Democrats strongly believe however, that a National Housing Strategy should be established which would not only better define respective State and Commonwealth roles and responsibilities but would include a joint government commitment to specific outcomes.

The majority report incorporates what we would regard as the central features of this strategy including the continuation of both the Commonwealth State Housing Agreement and involvement of both the Commonwealth and State governments, continuation of the rent assistance program and capital funding for public housing, and recognition of the need for more research. However our concern is that there is no specific framework which unites all these factors into a single comprehensive and cohesive national housing strategy and which will provide a guideline for policy formulation in the future.

The Democrats believe that such a strategy would allow for input and participation from all sectors of government and representatives of the housing industry and community organisations.

Local Government

Local Governments are in the unique position of being able to facilitate the provision of low cost housing at the local level by encouraging partnerships with and between private developers, community groups and with State Governments. Councils can influence local planning laws to encourage private developers to invest, identify suitable properties for community housing projects and can undertake more corporate roles such as direct purchase of land for housing purposes and the management of housing assets. The Australian Local Government Association noted in their submission that local government tends to get most involved with housing provision in those areas of the greatest market failure and therefore their contribution to housing assistance should not be disregarded.

While the Democrats recognise that involvement in housing by Local Government is by no means uniform and that it may not be appropriate for the Australian Local Government Association to be a formal partner in the Commonwealth State Housing Agreement, we do support a continuing role for local governments in housing provision and believe that involvement by local government should be facilitated by State and Commonwealth governments much more than is presently the case, particularly in relation to policy development. The Democrats also regard it as highly desirable that local government be involved in future housing task forces, as suggested by the ALGA.

Quoting from the ALGA's Housing Policy:

Local government needs to be fully involved in the formulation of regional, State and national housing policies and programs, and in the negotiation of relevant intergovernmental agreements.

An essential pre-requisite for the further development of Local Government's roles in housing is that the extent and value of existing functions and involvement be properly recognised by the Commonwealth and the States. Only if such recognition is granted will Local Government feel encouraged and empowered to expand their involvement.

Recommendation: The Democrats recommend that a housing task force be established to assist with the development of a National Housing Strategy and that local government has a role in both its policy development and implementation.

Consultation with the Community

It is desirable that peak organisations participate in the formulation of a National Housing Strategy. The Democrats support the input of peak organisations such as the ALGA, ATSIC, ACOSS, and the Real Estate Institute of Australia and other national organisations representing, among others, people with disabilities, the aged, and migrants into this process.

As an extension to this we believe that the Commonwealth Government should resume its funding for National Shelter, given that this organisation represents around 700 housing organisations around the country and its essential role in the development of housing policy at state and federal level.

Recommendation: That the Commonwealth resume funding arrangements for National Shelter, Australia's peak housing organisation, and encourage the participation of other national peak organisations representing a variety of interests into the planning of national housing policy.

Housing and Homelessness

In the majority report the Committee recommends that there be better coordination between the SAAP program and other community services to allow SAAP clients better access into either public housing or the private market. The Australian Democrats support this recommendation but would argue that it would still fall short of addressing the needs of the homeless.

Homelessness is on the increase and we believe this serious issue warrants the delivery of a specific strategy to reverse this trend. While direct delivery of services for homeless people should continue to be a joint Commonwealth and State responsibility through the Supported Accommodation Assistance Program, it is clear that the Commonwealth Government needs to provide initiatives for the needs of the homelessness to be addressed in a more comprehensive fashion.

ACOSS gave evidence that 50% of homeless people are turned away from crisis accommodation services and that current levels of funding are insufficient. An adequate network of crisis facilities is essential as the first step towards reducing the incidence of homeless within the community. Therefore the Democrats support the ACOSS call for a 10% increase in base funding for the SAAP program, to be matched by State Governments.

A necessary second strategy will focus on improving both access and affordability of housing for homeless people within the framework of the Commonwealth State Housing Agreement. There needs to be closer integration between SAAP and other programs linked to the Commonwealth State Housing Agreement to facilitate the movement of people who have been in crisis accommodation towards finding more stable and permanent housing arrangements.

It is essential that the Commonwealth Government continue to fund the States via the CSHA, target rent assistance to homeless people and encourage the States towards more fair and equitable State tenancies acts. The Council to Homeless Persons has suggested an audit of current Crisis Accommodation Program (CAP) and SAAP housing stock with a view to increasing stock numbers managed by State Housing Authorities. This could be achieved either by headleasing stock from the private market or in direct State government acquisition.

Recommendation: That the allocation of funding for the SAAP program be increased by 10% to make up for the current shortfall in crisis accommodation and a specific strategy to reduce homelessness be incorporated into the National Housing Strategy.

SENATOR LYN ALLISON
Senator for Victoria

10 December 1997

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