Hutt Street Centre, Catherine House hit by $2.4m funding cut

The Hutt Street Centre and Catherine House have had $2.4m cut from their budgets in a State Government shake-up for homelessness services.

The State Government has cut $2.4m from two of the city’s key homeless providers in a major shake-up for homelessness services in South Australia.

The Hutt St Centre and Catherine House, the only centre for single homeless women, have lost $1.2m each.

The centres lost out to a rival consortia backed by the Lutheran Church in an announcement made today and touted by Human Services Minister Michelle Lensink as the “the biggest shake-up of homelessness services in more than a decade”.

The news has rocked the Hutt Street Centre, which said it would result in as yet undisclosed job losses. Catherine House has a budget of $4m and is also likely to suffer job losses.

CEO Chris Burns said he was disappointed in the decision, “but we do wish all the best to the successful alliance”.

“This decision does not mean the end of Hutt St Centre, it is however, the cessation of a significant government-funded program,” he said.

Hutt Street Centre CEO Chris Burns. Picture: Tricia Watkinson

The Hutt Street Centre opened a $2.2m upgrade in February. Picture: Emma Brasier

Total annual revenue for The Hutt St Centre is $8.6m and staff expenses are more than $5.4m.

It opened a $2.2m upgrade in February.

There has been no overall cut in funding for homeless services.

The state government has allowed tenders for grouped homeless providers for the first time, creating “alliances” in Adelaide South, Adelaide North, Country South, Country North and for anti-domestic violence organisations.

Ms Lensink hailed the $70m in tenders as a way to achieve greater accountability in the welfare sector.

“We want better outcomes for our most vulnerable and today we draw a line in the sand to ensure we achieve that,” she said.

“We’re really excited to be spearheading an Australian-first Alliance approach that places a strong focus on early intervention to prevent South Australians from becoming homeless in the first place.”

In 2020-21, a total of $71.5 million is committed to specialised homelessness services, up from $67.9 million the previous year.

Opposition leader Peter Malinauskas criticised the decision.

“Why the government would choose this time to cut funding for the Hutt Street Centre beggars belief,’’ he said.

“How is it that the Marshall Liberal Government can find $700 million for a basketball stadium but can’t find money to support the Hutt Street Centre’s valuable work.”