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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-11-28 Daily Xml
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Question Time

LALUNA HOUSING COOPERATIVE

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:21): I seek leave to make a brief explanation before asking the Minister for Social Housing a question about an impending eviction.

Leave granted.

The Hon. D.W. RIDGWAY: One of the minister's responsibilities includes the LaLuna Housing Cooperative. Last year, there were allegations of bullying and intimidation within the cooperative. In fact, just under a year ago, on 2 December 2011, an investigation was commissioned by Community Partnerships and Growth into the LaLuna Housing Cooperative. This report was due nine months ago, but it still is not finalised. In April, after a draft report was released, a Housing Appeal Panel hearing was held with Ms Rebecca Cambrell, who lives in one of the co-op's properties. The hearing found that the co-op's management was being conducted appropriately, but the panel did not consider the findings of the draft report.

The next development involved a complaint being made over the draft investigation report, so Community Partnerships and Growth commissioned an audit to be conducted by Ernst & Young. The minister confirmed on 22 May that an audit was underway. This audit was completed in September, and it made recommendations to Monica Redden Consultancy to include in her report. These changes were recognised in the September 2012 Monica Redden Consultancy report which found 'evidence that LaLuna is currently not functioning effectively as a cooperative'. Specifically, concerns were raised about breaches of the Co-operative and Community Housing Act and it found evidence that LaLuna was experiencing operational difficulties.

Since this report has been released, Ms Kaye Espie has made representations on behalf of Ms Cambrell to Philip Fagan-Schmidt of Housing SA, Alison Kimber of CPG and yourself, minister. You recently wrote back advising that Ms Cambrell can appeal to the Housing Appeal Panel to safeguard her tenancy—a step already tried and rejected by Ms Cambrell. You also advised that a separate investigation into the report was being undertaken due to complaints 'relating to natural justice and administrative law principles'. Ms Cambrell now faces a Residential Tenancies Tribunal hearing regarding her tenancy on Friday. My questions are:

1. Can the minister advise why the Housing Appeal Panel did not consider the draft report prepared by Monica Redden Consultancy and why it came to a considerably different conclusion compared with both the draft and final investigation reports?

2. Can the minister elaborate on the details of the current investigation he mentioned in his most recent letter to Ms Kaye Espie?

3. Can the minister advise whether he will intervene in this co-op due to the evidence found of breaches of section 71 of the South Australian Co-operative and Community Housing Act 1991?

4. Does the minister believe it is appropriate that tenants of a co-op currently under investigation can be evicted while the findings of those investigations are in dispute?

5. Will he intervene?

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers) (14:24): I thank the honourable member for his most important and incredibly well-researched question.

An honourable member: He's not a lazy opposition member.

The Hon. I.K. HUNTER: Obviously not; he obviously has leaks from someone who gives him very much detail and does the work for him. In December 2011, the director of Community Partnerships and Growth appointed an independent investigator to undertake an investigation into LaLuna Housing Cooperative under section 71(3) of the South Australian Co-operative and Community Housing Act.

This was, as I understand it, based on serious complaints made by members and tenants of LaLuna to Community Partnerships and Growth, and the apparent failure of LaLuna to comply with an order made by the Public and Community Housing Appeals panel in relation to a certain tenant. The draft of the investigation report was released and distributed to the housing cooperative for comment on 23 March of this year.

I am advised that, on 18 April 2012, a tenant within the LaLuna Housing Cooperative complained of bias and professional misconduct in relation to the draft report. The complainant was informed their complaint had been referred to the Department for Communities and Social Inclusion Risk Management and Internal Audit, and that on 29 May 2012 Ernst & Young were appointed to undertake an external review of the draft investigation report.

Ernst & Young completed its review of the draft investigation report on 16 August 2012 and Housing SA advised the complainant of progress and the future processes on 31 August 2012. On 14 September 2012, the investigator forwarded their final report on to Housing SA. Housing SA has attempted to meet with the complainant to discuss the outcomes of the complaints, but my advice is that it has been very difficult to secure an appointment with the complainant.

The department is considering the final investigation report and additional materials to determine whether statutory intervention into the cooperative is appropriate. It is my advice that it is also seeking legal advice on the matter and expects this to be provided in the next couple of weeks. Pending that legal advice and, of course, the outcome of the hearing the honourable member mentioned on Friday, I do not feel it is appropriate to comment further until after I have seen that advice.

The PRESIDENT: A supplementary from the Hon. Mr Ridgway.

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