The Council of Social Service of NSW (NCOSS) and Shelter NSW are calling upon the NSW and Commonwealth governments to take urgent action to tackle the desperate financial crisis facing public housing.
"A new report, released by the Australian Housing and Urban Research Institute (AHURI), shows that without major corrective Government initiative, Australia could witness the demise of its public housing sector in 10 years.
"The NSW Department of Housing has the fastest falling net income and the third highest operating deficit of all states. In the last ten years real operating incomes fell by 14% whilst real operating expenditures grew by 41%"said NCOSS Director, Gary Moore.
"The situation is no longer tenable, with the NSW Department of Housing NSW Department of Housing recording a $5 million loss per week. and having 81,000 applicants on the waiting list."
"Put simply, years of inadequate funding through the Commonwealth State Housing Agreement, combined with only housing people on the lowest incomes and asset stripping the Department's profitable cross subsidy activities such as land development has led to this horrendous position."
"Urgent action must be taken now if we are to avoid a total budget meltdown in social housing, the fallout from which would be devastating for people in housing need. The turnaround in the dire straits of public housing in New Zealand bears this out," said Shelter NSW Executive Officer, Mary Perkins
"The AHURI report itself provides solutions which are worth serious consideration by all levels of government. If the gap between affordable rents and market rent were recognised and met through the Community Service Obligation, as is now the case for electricity and water concession holders the longer term financial stability and sustainability of public housing could be significantly improved".
"We must grow net income without sacrificing affordability. Opening up public housing to more working people may also be one option that could improve finances and also promote social mix. These, and other options should be considered as part of a comprehensive state and national housing policy," added Mr Moore.
Media contacts
Gary Moore,
Director, NCOSS - 0407 567 408 (m), (02) 9211 2599 (wk)
Mary Perkins, Executive Officer,
Shelter NSW - 0419 919091 (m), 9267 5733 (w)