Jeff Kennett: Federal budget housing pledge promises to be a hoax

The Commonwealth government announcement that it will spend $11.3bn to address the nation’s housing crisis is good in principle, but if federal and Victorian leaders can’t tell us how it will be implemented it remains a cruel hoax.

The announcement on Friday that the Commonwealth Government is going to spend $11.3bn over the next five years to address Australia’s housing crisis is good in principle but needs to have targets and disciplines attached to the expenditure.

Firstly, we do not know if this is new money, or existing allocations just being rolled into a program with a new name. That needs clarification.

Secondly, the $11.3m only equates to $2.26m per year divided up between all states and territories. What criteria will be used to allocate this funding?

The measure includes the Commonwealth doubling to $400m funding for the homeless. That means an extra $200m, to be matched by states and territories. Is that over five years or an annual expenditure? I expect over five years, so if the states match the funding as suggested that is a total of $800m over five years or $160m a year spread around the country.

The biggest problem here in Victoria is our government has proved that they cannot manage any project of size.

The allocation of $11.3bn is primarily aimed at addressing homelessness, providing crisis support and building and repairing social housing.

$1bn will be allocated to provide crisis and transitional accommodation for women and children fleeing domestic violence, and youth.

These are all commendable objectives, but none of the Commonwealth or Victoria’s targets for providing the housing they have already committed to are being met now or are unlikely to be met. So, what chance have these new programs got of being delivered.

The biggest problem here in Victoria is our government has proved that they cannot manage any project of size.

Secondly the labour force to build our existing housing requirements let alone these new initiatives does not exist. The reality is most of our tradies have been employed by our massive infrastructure projects that are paying huge salaries including the most generous travel allowances.

With the government continuing to build the SRL, the demand for tradies on infrastructure projects will continue for the next five to 10 years. Picture: Suburban Rail Loop Authority

This has been a direct result of the Victorian government’s failure to manage these projects and control costs. All demands for extra payments have just been agreed to.

And do not forget with the government continuing to commit to the Suburban Rail Line, the demand for tradies on infrastructure projects will continue for the next five to 10 years. So where are the tradies going to come from for our existing housing needs and those proposed in Friday’s announcement?

Finally, there will be included $1bn for the infrastructure needed for the construction of homes: roads, sewers, energy, etc.

Where are the tradies going to come from for our existing housing needs and those proposed in Friday’s announcement? Picture: iStock

I am not against the sentiment of Friday’s announcement, but I can see no way how they will be delivered, and targets achieved.

We need clarification of whether new or recycled monies. We need clarification on how the monies will be allocated and what controls will be put in place to ensure there is no wastage of monies. But importantly we need to know where the labour is going to come from to deliver this new housing.

It appears none of this money is being spent on the basic ingredient for delivery: people to actually build the housing.

If the federal and Victorian government cannot answer these simple questions one can conclude this is just a cruel hoax on the most vulnerable in our society.

There must be better accountability, controls and transparencies on all government expenditure.

Jeff Kennett is a former Premier of Victoria