$125 million housing lift as Liberals cop social spending hit

PREMIER Will Hodgman has promised to inject another $125 million to boost Tasmania’s affordable housing stock.

Premier Will Hodgman flanked by Human Services Minister Jacquie Petrusma and Master Builders of Tasmania executive director Michael Kerschbaum. Picture: LUKE BOWDEN

PREMIER Will Hodgman has promised to inject another $125 million to boost Tasmania’s affordable housing stock as a Productivity Commission report slams his government’s performance in the sector.

The extra money will pay for another 1500 new affordable homes built across the state over five years to help deal with what Mr Hodgman called the “growing pains” of economic growth.

Mr Hodgman said the investment in stage two of the Affordable Housing Strategy would create more than 900 construction jobs.

A total $20 million of the $125 million spend will be quarantined for purpose-built homes for people living with a disability.

The extra 1500 homes will help alleviate the housing crisis property experts say will only be fixed if 5000 new dwellings are constructed.

But the 2018 Report on Government Services paints a bleak picture of investment in social housing in Tasmania under the Government, with spending falling from $148.4 million in 2013-14 to $102.8 million in 2016-17.

The number of public houses built dropped by more than 4000 over the same time period but the number of community houses constructed climbed, from 2434 in 2013 to over 6000 last year.

“The Hodgman government has significantly reduced expenditure on social housing and as a result the total number of dwellings available for social housing has reduced over the term of government,” the report says.

“Spending in dollar terms has dropped by $45.6 million.

“All that has been achieved by consecutive government is public assets have been handed over to non-government organisations yet the stock of dwellings available has fallen.”

The commission said the number of people on the public housing waiting list had increased along with the number of applicants on the waiting list in greatest need. Recurrent spending on homelessness services has also fallen.

Michael Kerschbaum, of the Master Builders Association, said the Government’s pledge would provide a “pipeline” of work for Tasmania’s building industry with 300 new homes needed a year.

Director of the Institute for the Study of Social Change Richard Eccleston said Tasmania needed a mix of more social housing and secure, long term private rentals.

“Any serious proposal which aims to improve housing outcomes over the longer term should focus on making stamp duties fairer and then gradually introducing a broad-based property tax which includes higher value family homes,” Prof Eccleston said.