Legislative Council Fifty-Fourth Parliament, First Session (54-1) 54 1 Parliament of South Australia Legislative Council published Ministerial Statement Ministerial Statement Housing Trust Triennial Review Housing Trust Triennial Review The Hon. J.M.A. LENSINK Legislative Council Minister for Human Services The Hon. J.M.A. LENSINK (Minister for Human Services) (14:17): On the topic of the Triennial Review of the South Australian Housing Trust, we all know that appropriate and affordable housing is a fundamental need and the cornerstone for good quality of life and wellbeing. It is pivotal in enabling people to reach their fullest potential and for communities to grow and thrive. In South Australia, our job to provide essential and affordable housing has been made more difficult as a direct result of 16 years of Labor's mismanagement. Put simply, our housing system is broken, a fragmented shell of what it once was. The Labor government's irresponsible stewardship has left us with deteriorating assets, diminishing resources and an ever-growing maintenance bill. The Rann and Weatherill governments significantly reduced the quality and quantity of housing supply to those most in need. Today, I table the Triennial Review of the South Australian Housing Trust, an independent report as required under the South Australian Housing Trust Act. Its findings highlight the operational shortcomings of a broken system and the incompetence of previous Labor governments. According to the report, the South Australian Housing Trust's governance structure has created disjointed and illogical decision-making. This lack of an accountable and transparent governance structure has seen significant funding be drawn out of the social housing system without public scrutiny. As a result, we have seen the sale of $900 million of houses in the last 10 years; an unquantified maintenance backlog, estimated at $700 million; a declining cash balance, which has drastically reduced from $397 million at the end of 2015-16 to $205 million at the end of 2016-17; and a social housing portfolio where houses are not well matched to tenant requirements. In total, $265 million was stripped by the Labor government from the social housing system over the past four financial years, making it difficult for the board to control the financial performance of the South Australian Housing Trust. The Labor government simply did not respect the real cost of maintaining the system and ensuring its viability into the future. At the same time as money was being taken out of our public housing system, rental stress has dramatically increased for low income renters in South Australia from 22 per cent to 39 per cent over the period 2007-08 to 2015-16 and the priority one housing register of people seeking housing assistance has doubled. While clearly highlighting the many shortcomings of the current housing system, the triennial review looks towards the future and includes key themes for building a modern housing system, one that is sustainable, transparent, effective and integrated. The report emphasises that a new system must consider the needs of customers first as well as housing pathways to achieve housing aspirations. It recommends a system that provides a range of housing responses that both prevent and respond to housing crisis. It also recognises the importance of a diverse and robust housing industry where multiple providers are encouraged and supported and where the supply of appropriate stable and secure housing meet actual need. It emphasises that funding must be outcome based and that investment must occur at the right time and in the right location. Overall, the report highlights the need for transparency in the services provided and for system level planning that is responsive to commonwealth and state funding and policy reform. The Marshall Liberal government has recognised that reform is needed which is why I recently announced the parameters of a new housing authority. We recognised that we must hit the reset button and provide a new governance framework to improve decision-making and ensure a holistic response to South Australia's housing crisis. The government acknowledges that ongoing partnerships with non-government housing and support providers is essential if we are to respond appropriately and strategically. The housing authority and interim board, which came into effect on 1 July, is a significant step towards addressing Labor's negligence. The new authority will be charged with working with industry, providers and, most importantly, customers and communities to develop and drive reforms across the South Australian housing system. It will have a new focus, new structure and a new model aimed at fixing a broken system. A key deliverable of the authority will be a new housing and homelessness strategy developed in partnership with community housing providers, specialist homelessness services, industry stakeholders, customers and citizens. Work is also underway to map housing need and supply and to audit the condition of properties to inform the development of the new strategy and to better direct our investment to ensure that customers are getting the services they need when they need it and for the time they need. I recognise that housing is a long-term investment and that it will take a concerted and collaborative effort to address Labor's many years of neglect. The Marshall Liberal government is up to the challenge. I look forward to working with our many key partners and stakeholders to build a housing future that responds to the needs and aspirations of all South Australians. Before I table the report I would also like to comment on a headline in the newspaper which stated, 'Officials milked cash cow homes'. It is a bit unfortunate because I think it does not actually finger the real culprits in these particular decisions as the state Labor cabinet. The word 'officials' tends to suggest that it was employees of the various housing agencies, who were always operating under direction and these were not their decisions. I now table the South Australian Housing Trust Triennial Review 2013-14 to 2016-17.