HOUSING TRUST

The Hon. M. PARNELL (15:08): I seek leave to make a brief explanation before asking a question of the Minister for State/Local Government Relations about government plans to dispose of more Housing Trust homes.

Leave granted.

The Hon. M. PARNELL: It has been reported that the government is proposing to lease an additional 1,000 Housing Trust homes to community housing organisations on top of the 600 homes that were shifted to community housing organisations last year. The Local Government Association and a number of mayors have expressed their concern about this scheme because they see it as a cost-shifting exercise in which local government will be the losers financially. According to an article in InDaily this morning:

The mayors are concerned by the move because houses transferred to Community Housing Associations enjoy a 75 per cent discount on council rates—which would equate to millions in lost revenue for local councils.

My questions of the minister are:

1. What impact will the move of public housing to community housing associations have on local government rate revenue?

2. If there is shown to be a negative impact, will the government compensate local councils for the rate revenue foregone?

3. Have the Local Government Association or any individual councils raised their concerns with you, and if so, what was your response?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:10): I thank the honourable member for his most important question. My understanding is that this comes under the Minister for Housing, the Hon. Tony Piccolo, and I am happy to refer the questions to him and bring back a response.

My understanding is that there have been no final decisions about this matter as yet, so obviously the issues around that are still being considered. No final decision has been made and consultation is still occurring. I am trying to recall whether any individual council or the LGA has specifically raised this issue; to the best of my recollection they have not, but I can take that on notice and bring back a response. If they have, they certainly did not raise it in any great detail, but if they have I will make sure I bring that back.