Time to ditch debt

The $15million spent paying back the state’s historic housing debt each year could be delivering about 50 new low-cost homes to help with the housing crisis.

Tasmania’s historic housing debt would fund the annual construction of about 50 new low-cost homes. Picture: SUPPLIED

FIFTEEN million dollars a year is a drop in the ocean of Federal Government coffers, but the same amount would be life-changing for dozens of Tasmanian families seeking secure low-cost housing.

In fact, it would fund the annual construction of about 50 new low-cost homes. Instead, we spend the sum perfunctorily servicing a historic housing debt.

Following last week’s crisis housing meeting between Government and social services, State Housing Minister Roger Jaensch committed to lobby the Coalition this week to release Tasmania from the burden of the decades-old debt now sitting at $157 million.

Our message to the Minister as he goes forth in this mission is to make a strong and compelling plea for “forgiveness” so that the $15 million of dead money we are forced to repay can be diverted straight back into public housing and homelessness services for Tasmanians of today and tomorrow.

We have nothing to lose and everything to gain by broking with a Government that may or may not already consider Tasmanians to be mendicant.

There is no pride to be lost here, only precious resources to be gained by securing the reprieve that South Australia achieved in 2013.

There is no shame in vulnerability, but there is great shame indeed in a wealthy nation letting more than 100 people in the coldest state sleep rough every night through winter.

Community sector groups and state ministers have long argued the debt should be ditched and the money spent on much-needed public and community housing.

The Premier made the right noises back in 2015, telling the Mercury he was lobbying to have the debt removed.

“It’s a burden that the state has borne for some time now and not only my government, but previous governments have argued to have it removed,” he said.

What is clear is that Hodgman’s Government and its predecessors have not lobbied hard enough.

As University of Tasmania housing academic Professor Keith Jacobs said in our coverage today, “It is easy to blame the Federal Government for what’s happening, but this State Government and the previous were massively complacent for years. It’s been very frustrating to watch.”

If successful, it is vital that the $15 million does not become a dollop in our considerably smaller ocean of general state revenue. Any gain must be driven straight back into public and community housing.

TasCOSS has previously estimated the payment relief would free up enough money to build 50 houses annually. It’s a nifty cost analysis, but it means a lot more when we put a human face to it.

Lila Landowski is a great example of what can be achieved by families of fewer means when they are able to benefit from stable, secure housing over many years.

A guaranteed roof overhead can change a life trajectory, no argument there.