National Partnership Agreement on Remote Housing

The Hon. Z.L. BETTISON (Ramsay—Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for the Status of Women, Minister for Ageing, Minister for Multicultural Affairs, Minister for Youth, Minister for Volunteers) (14:03): I seek leave to make a ministerial statement.

Leave granted.

The Hon. Z.L. BETTISON: Throughout 2015-16, negotiations have been underway between state governments and the commonwealth for a new National Partnership Agreement on Remote Housing. The South Australian government has now agreed to sign the new agreement, which will replace the National Partnership Agreement on Remote Indigenous Housing (NPARIH) from 1 July 2016.

The capital funding and services delivered through these agreements are vital to improving quality of life for Aboriginal people in remote communities. Since the NPARIH commenced in 2009, 206 new homes have been constructed in remote Aboriginal communities in South Australia and 252 existing homes have been upgraded.

The capital works program serves two important purposes: firstly, to address housing shortages, restore the condition of dwellings and reduce overcrowding; and, secondly, to provide an opportunity for local residents to gain employment. Contractors will be required to provide an initial minimum 25 per cent of employment opportunities to local Aboriginal people, rising to 30 per cent in 2017-18. Employment targets will again be central to the new agreement. Over its two-year term, from 2016-18, $26.8 million will be delivered to South Australia through the new agreement, with payments released based upon delivery of agreed milestones and targets.

The new agreement will deliver $3.2 million less funding to South Australia than the former NPARIH, with the commonwealth government redirecting funds from all participating jurisdictions into their remote Work for the Dole program. This reduction in funding will place restrictions on remote housing service delivery and, unfortunately, indicates additional problems beyond the expiry of the agreement in 2018. This house should be aware that, without a meaningful and ongoing commonwealth government funding commitment, there will be a significant impact on South Australia's ability to deliver basic housing services to remote communities after the expiry of this agreement.

The gap between what it costs to deliver property and tenancy management services in remote Aboriginal communities and the income received through tenant rent has been estimated at $8.9 million per annum from June 2018. In the absence of capital funding, maintenance costs are likely to escalate further as properties deteriorate with age, and all the gains that have been made since 2009, to reduce overcrowding and restore the condition of dwellings, may be lost.

The end of the agreement will also end funding for the Employment Related Accommodation program. This will limit our ability to provide affordable accommodation for Aboriginal people seeking to relocate to metro areas in order to access greater employment and education opportunities for themselves and their families. The state government will continue to negotiate essential long-term funding with the commonwealth in order to continue to provide remote communities with quality housing services.