Dick Smith urges rich to donate houses to Salvos

Sydney businessman Dick Smith is encouraging Australia’s wealthy to donate houses to the Salvation Army.

Dick Smith with Leigh Cleave of the Salvation Army’s communications and fundraising department. Picture: Renee Nowytarger.

Sydney businessman Dick Smith is encouraging Australia’s wealthy to donate houses to the Salvation Army.

“People who are wealthy and have several houses should be prepared to donate a house to the Salvos for every house they own,” he told The Weekend Australian yesterday.

Mr Smith was speaking after handing over a cheque for $640,000 to help The Salvation Army buy two houses in regional NSW — one in Griffith and one in Broken Hill — for its Salvos Housing division.

This follows a $1 million donation in the past that the Salvation Army has used to buy three homes — two in Bathurst and one in Orange.

Salvos Housing offers accommodation for people on a temporary six to 12-month basis until they can get back on their feet and find their own housing.

Mr Smith’s latest gift co-incides with the Salvation Army’s Red Shield Appeal, which is running from now until the end of the month.

Mr Smith said he was alarmed at recent reports that the top 1 per cent of Australians had more wealth than more than 14 million poorer Australians combined.

“I am very concerned at what is happening around the world with this huge disparity between rich and poor,” he said.

“Some of the very rich have been increasing their wealth at a staggering rate in the past year.

“It worries me and I am doing what I can to share some of my wealth. If Australia’s wealthy don’t share their wealth we will end up with awful, far-reaching consequences.

“We could have people with pitchforks in the street like the French revolution.

“When the wealthier people get wealthier and the poor people get poorer, terrible things start to happen in society.”

Mr Smith said donating a house or the money for a house would help put a roof over the head for people in difficult circumstances.

He said some of Australia’s very wealthy had several homes, including holiday homes and properties overseas.

“I would like to encourage people who have more than one roof over their head to go to the Salvos and buy some houses for them,” he said.

The latest donation takes to $7m the total amount that Mr Smith has given to the Salvation Army.

Mr Smith yesterday said he had given just over $4m to charities including the Salvos in the current financial year and a total of about $60m over his lifetime.

He said other recent donations had gone to the Smith Family and to building a school in Afghanistan.

Mr Smith would not estimate his own wealth but it is not enough for him to be mentioned on the recent rich list.

He said he and his wife Pip, who have two daughters, had decided to give most of their money away before they died.

“We had a family conference with the girls a few years ago and they were OK with it,” he said.

Mr Smith said he had made most of his money recently from his ownership of industrial property around Sydney airport.

“People think I have made my money out of Dick Smith Electronics and publishing Australian Geographic,” he said.

“But I have made most of my money buying industrial buildings around Sydney and renting them out. Some have gone up in value a lot and given me more rent. But I don’t feel good just being a landlord.”

He said Dick Smith Foods, which supports Australian-owned food producers, was not a money-making proposition.

Mr Smith said he felt Australia’s wealthy were under an obligation to become philanthropists: “Giving money away is just fulfilling an obligation if you have done well.”