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House of Assembly - Fifty-Second Parliament, Second Session (52-2)
2012-11-01 Daily Xml
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AFFORDABLE PUBLIC HOUSING

The Hon. R.B. SUCH (Fisher) (11:30): I move:

That this house calls on the state government and federal government to fund more affordable public housing.

There is an irony in the fact that this motion is calling on both the state Labor government and the federal Labor government to support more affordable housing. There is an irony in that because one would normally expect Labor governments would be strongly committed to affordable housing. I am sure someone from the government will say that they are and they are doing a lot, but if you look at the history of affordable housing in South Australia it is the Liberal Party, going back to Sir Thomas Playford and, I think, Sir Robert Nicholls—I might have the wrong person, but I think it was someone of the same vintage—who set up what became the South Australia Housing Trust. It is one of the reasons why South Australia was able to develop an industrial base because there was cheap affordable housing, not just in Adelaide but in places like Whyalla, Port Pirie and so on.

There were some mistakes made in terms of congregating people together, and I think that lesson has been learned, that you need to have a mix of people in any sort of housing development so that you do not have a mono approach to things. That is a slightly different issue to the provision of affordable housing, which I define in these terms: affordable housing is housing which is reasonably adequate in standard and location for a lower or middle income household and does not cost so much that such a household is unlikely to be able to meet other basic living costs on a sustainable basis. Some of the specific measures would be that housing costs would be less than 30 per cent of household income and the occupants would be in the bottom 40 per cent of household income.

Throughout Australia housing affordability has deteriorated in the past 25 years. I do not think there is any doubt about that. I have some statistics from a research paper written by Julian Disney from the social justice unit of the University of New South Wales. He says that average house prices relative to income have almost doubled, average monthly payments on new loans have risen more than 50 per cent, the proportion of low rental homes has fallen by at least 15 per cent (that is in the last 10 years), opportunities to rent public housing have fallen by at least 30 per cent and at least three-quarters of a million lower income households now have housing costs above the common affordability benchmark of 30 per cent of income (the majority of those are private renters, many of whom pay more than 50 per cent of their income on housing).

What we have throughout Australia is a deterioration in housing affordability. I am not being overly critical of some of the more recent attempts to improve the quality of affordable housing and re-energise some of those suburbs which were built by the Housing Trust in the early days, they are in need of renovation and re-energising. According to figures published in The Advertiser in October 2012, there are 20,000 people on Housing SA's waiting list. I do not have any easy way of verifying that.

Mr Gardner: Twenty-two thousand.

The Hon. R.B. SUCH: Twenty-two thousand. When statistics are given they are nearly always rounded off. You will never hear someone say that there are 21,946 people on a waiting list: it is 20,000 or, as the member for Morialta tells me, 22,000. It is claimed in the same report that 54 people died waiting for Housing Trust accommodation. I do not know what that statistic really tells you, except that people get old and eventually die.

In the last financial year, Housing SA allocated properties to over 2,500 new households; 94 per cent were allocated to people in the highest categories, categories 1 and 2, and 66 per cent of category 1 applicants were housed within the first six months. That is the good news. According to the claim here, the people who are down the pecking order a bit, that is, in category 3, do not have a chance of getting a house in the near future.

If you look at the other states, there is a similar issue: New South Wales has close to 60,000 on the waiting list; Victoria, 41,000; Queensland, 30,000; Western Australia, 50,000; and in the Northern Territory the waiting period for a typical three-bedroom house is somewhere between 43 months and 112 months. In Darwin, it is about a seven-year wait.

What I am trying to do with this motion is not the blame game. I am not interested in that; it is a waste of time. What I want is to see greater commitment, and that would apply to the opposition if it comes into government. I think there needs to be greater effort put into affordable housing. There are a whole lot of issues involved there, including availability of land for development and height restrictions on housing. It is not simply a question of whacking up a dwelling somewhere. There are a lot of related issues of transport, infrastructure and also the social cohesion of those areas that have to be addressed.

As I indicated at the start, some significant errors were made when a lot of people of a similar background were lumped together in the northern and southern areas of Adelaide. I think it has led to some serious social issues which need to be avoided in any future provision of affordable housing.

Statistics are given about people who are homeless. I am a little sceptical of some of those figures because some of the people who are sleeping rough may have a choice of having a roof over their heads but for a whole range of reasons choose not to. We know that many of those people have psychological and mental health issues and other problems, but I know for a fact that some young people (I do not know the exact quantum) do not want to live according to the rules of their household.

We know that some people flee because of domestic violence and so on. The welfare agencies bring out a lot of figures relating to homelessness. I am not sure whether they are all homeless because they literally do not have a roof over their heads, or whether they do not want to live according to rules and so on in a particular household. That in a way it is a side issue, but it is an important one.

The main thing is ensuring that families who are on the lower scale of income can actually have a place where they can live. If you look at the bigger picture, if you want to attract people to South Australia in a broader context you need to have housing that is affordable in an overall sense. In one of our parliamentary committees, we are currently hearing the experiences of migrants, and housing is a key factor for people who come, for example, as humanitarian arrivals.

If you are going to have people coming here on a humanitarian basis, whether they are processed onshore, offshore or wherever, you need to ensure as far as possible that there is housing which is appropriate and relevant to their needs. I conclude my introduction of this motion by restating that I am not in the business of trying to initiate a blame game. I pointed out at the start that the Liberal Party—it was the LCL then—through Sir Thomas Playford and Sir Richard Butler got the Housing Trust underway.

There is the challenge, I think, for the state and federal government: look at the track record going back to those early days in South Australia. Whilst it will be done differently, and needs to be done differently in this day and age, I think there is an example of how governments can do something to make housing affordable for people on the lower or middle income level.

Dr CLOSE (Port Adelaide) (11:40): I move to amend the motions as follows:

Delete all words after 'that this house' and insert:

congratulates the state and commonwealth governments for their work in promoting affordable housing through the following initiatives:

Since 2009 Housing SA has been funded by both commonwealth and state governments at $133 million per annum, with approximately $95 million provided by the commonwealth and $38 million by the state.

This funding provides the finance needed to build houses, run assistance programs, conduct maintenance on Trust houses and partner with NGOs in providing affordable housing to the many South Australians needing help with their housing needs.

The Nation Building Economic Stimulus Plan which has seen more than 1,400 new homes built.

Remote Indigenous Housing (providing $291 million between 2008-09 and 2017-18) to build new properties and upgrade existing properties. In 2011-12 there were 58 new properties built and 39 refurbished. The previous year, 2010-11 there were 28 new properties and 58 refurbished.

Homelessness Strategy, ($73 million between 2007-08 and 2012-13) to help fund homelessness related services and programs such as Melrose Park Aged Housing Program, Ladder St Vincent Street at Port Adelaide, UNO Apartments and the Youth Crisis Service and Common Ground at Light Square and Franklin Street Adelaide and at Pt Augusta.

Ongoing support and promotion of HomeStart with 1,371 households purchasing their properties in 2011-12.

The Affordable Homes Program which has seen 891 households purchase houses, including 217 in the past financial year.

Provision of bond assistance by Housing SA, assisting around 20,000 households in 2011-12.

Subsidised private rental through the National Affordability Scheme to encourage businesses, community organisations and mum and dad private investors to build houses and rent them to low and middle income households at 20 per cent below the market rent of the property.

The transferring of more than 600 Nation Building Stimulus properties to the community housing sector in the past 18 months.

This house calls upon the state and federal governments to continue their investment in affordable and public housing.

I commend the mover for his interest in this matter but thought it appropriate to put on record the state's success in affordable housing. As a state and a government, a collective focus on keeping home ownership and rental costs within reach is required to ensure that all South Australians can achieve the security and comfort associated with having a roof over our heads. Adelaide is considered one of the world's most liveable cities and we believe that a major contributing factor is that it is a relatively affordable place to live. While we are extremely proud of this, we understand that there are many South Australians who are unable to balance the competing financial pressures of a mortgage or rent, school fees and utilities bills and the rising cost of essentials such as food and clothing—and I am acutely aware of the reality of that in my electorate of Port Adelaide.

We believe that well-considered planning of our neighbourhoods and careful design of our homes can reduce the cost of living and improve our general wellbeing. The vision of this government for the future of affordable housing is an achievable one. In our vision, South Australia has a wide range of affordable homes for purchase and rental catering to different types of families and income levels. Industries supplying housing, food and utilities are efficient and supply at competitive prices. Homes and neighbourhoods are designed to conserve energy and water to help reduce demand and costs. The state's not-for-profit sector has become a major supplier of affordable housing to those on lower incomes, and South Australians are in greater control of their own finances. Those in financial hardship receive the support they need to manage essential cost of living pressures better.

So, what are we doing to achieve this vision? Since the inception of the South Australian Housing Trust in 1936, South Australia has been a leader in housing affordability. Its operations are currently partly funded by the commonwealth government and state government, provided for under the National Affordable Housing Agreement, which commenced in 2009 and is subject to periodic review. The funding is currently in the order of $130 million per annum, with approximately $95 million provided by the commonwealth government, and $38 million by the state government.

In addition, there is a series of national partnership agreements that have provided further grant funding to the South Australian Housing Trust for the achievement of specific outcomes required by their respective agreements. In partnership with the commonwealth government, the not-for-profit sector, industry and individuals, the state government is ensuring that all South Australians have access to affordable housing, recognising that 'affordable' has different meanings for different people.

For some in South Australia, home ownership is a reality, or at least a realistic goal. For others, the state government is assisting the finance industry to develop innovative mortgage products for low and moderate income households to achieve these aspirations. HomeStart Finance provides home loans that offer solutions to the challenges people face when buying a home of their own. HomeStart loans create a foundation for sustainable, affordable home ownership. They offer the option of lower deposit requirements and repayment safeguard, as well as flexible repayment arrangements.

The Affordable Homes program aims to increase the supply of affordable housing for low to moderate-income households meeting eligibility criteria. The properties are advertised on the Affordable Homes locator for a limited period of time, during which interested and eligible parties can purchase on a first come, first served basis. This allows eligible low to moderate-income households to purchase homes under $300,000 without the pressures of competing with higher income earners or investors. Some 891 households have been able to achieve home ownership through the Affordable Homes program, including 217 in 2011-12.

Housing SA runs the highly successful Private Rental Liaison Program, under which clients who face barriers in the private rental market have access to a free service to assist them to find affordable private rental property. In addition, Housing SA can offer bonds and rent in advance or arrears to assist South Australians to overcome some of the financial barriers in renting privately.

This offers low income earners and those with minimal savings to enter the private rental market. I have had several people who have been helped through my office to connect with Housing SA and have access to this scheme. Private rental liaison officers can also assist their customers to maintain a successful tenancy in the private rental market.

In the 2011-12 financial year, Housing SA provided 20,000 bonds to assist South Australians to gain affordable private rental accommodation. Using resources in this way eases the pressure on the social housing system, and also allows people to develop independence and the skills to maintain a successful private rental tenancy. For those South Australians for whom home ownership and the private rental market are simply not options, Housing SA may also offer public housing.

Housing SA tenants pay a maximum of 25 per cent of their income as rent, up to a capped market rent. This ensures that all public housing tenants are accommodated in affordable housing. As of 31 August this year, Housing SA provided affordable housing to nearly 41,000 South Australian households. Community housing organisations accommodate almost a further 4,500 households in affordable housing. These figures provide a brief snapshot of just how many South Australians are already assisted in finding and maintaining affordable housing.

Housing SA also works with Renewal SA, local government and the residential building industry to deliver affordable housing opportunities to the community. Strategies currently include: the continued construction of public housing; actively working on urban renewal opportunities; working with the community housing sector; and pursuing opportunities in the affordable home ownership area, including working with developers.

The South Australian government has a policy that affordable housing comprise at least 15 per cent of new housing and significant developments. Since 2008-09, 3,640 new homes have been built under this policy. Affordable housing in such developments may be social housing rental properties, affordable rental properties, or purchased via the Affordable Homes program. This policy ensures that affordable rental and home ownership opportunities are available to give increased housing choice to low and moderate income households.

Despite the South Australian government's considerable efforts towards affordable housing, an injection of commonwealth funds can make a positive impact. Two prominent examples of these are the National Rental Affordability Scheme and the Nation Building—Economic Stimulus Plan. It is vital that these partnerships are maintained and strengthened in order for us to create a vibrant city that is an affordable place to live and to have safe communities and healthy neighbourhoods.

Mr GARDNER (Morialta) (11:50): Given that it took about two minutes for the member to read the amendment to the house, I suggest that the debate be adjourned so that all members may consider it. I move:

That the debate be adjourned.

Motion carried; debate adjourned.

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