Multi-billion dollar plan to tackle homelessness and create Victorian jobs

Thousands of housing units will be built to tackle Victoria’s homelessness crisis, with the largest public housing construction project in Victoria history also set to create thousands of jobs.

Daniel Andrews (right) is set to continue his infrastructure blitz. Picture: Asanka Ratnayake/Getty Images.

Billions of dollars of taxpayer money will be spent on the largest public housing ­construction blitz the state has ever seen.

The state budget next week will include a huge spending splurge to build thousands of housing units, to attack homelessness and further boost the construction sector.

The record spend on social infrastructure will be a centrepiece of what is being called an “eye-watering’’ budget as the government prepares to borrow big to build big.

The budget will also include several other shovel-ready projects — including new transport initiatives — all aimed at creating thousands of jobs and kickstarting the economy after the pandemic crisis.

The social housing build will make use of state-owned land through public-private partnerships with developers, meaning projects could be started quickly to get people into work.

It is expected the housing will be located across Melbourne and the CBD, with the government integrating social housing into existing suburbs and using mixed-use buildings with private and government tenants and owners.

Social services groups want 6000 new dwellings to be built every year to try to cut into a public housing waiting list that has blown out to the size of an MCG crowd on Grand Final day.

Thousands of units will be built across Victoria. Picture: Tony Gough

The pandemic has triggered record low interest rates, with governments effectively paying back about one per cent on borrowed money — or $5000 a year on a $500,000 home.

A parliamentary hearing recently heard that an estimated 82,499 people including 24,622 children were waiting for public or community housing.

But Victorian Council of Social Service chief executive Emma King said that was a 2018 figure, and the pandemic meant “well over” 100,000 people were now in need.

“Victoria has a big build for transport. Why not a big build to end homelessness? That would put tradies to work, stimulate the economy and house those most in need,” she said. “It’s a no-brainer.”

Former premier John Brumby recently said governments across the board had cut public housing funding in real terms since the 1980s, but rock-bottom interest rates accessible to governments now meant it was a “monty for a huge investment”.

“We have got a construction industry which is literally on its knees, the beauty of housing is it’s a quick start, it’s a quick stimulus, it’s a quick jobs generator,” he said.

Opposition housing spokesman Tim Smith said “Labor has been in government for 17 out of 21 years, and in real terms the number of public housing dwellings has gone backwards”. He added: “Labor has simply failed to invest. Every Australian ­deserves a roof over their head.”

A government spokeswoman said it would “continue to invest record funding levels making sure Victorians sleeping rough, at risk of homelessness, and those escaping family violence, can find a home”.

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