Federal Government set to waive state’s historic housing debt

UPDATED: The Federal Housing Minister has confirmed to the Mercury that he plans to visit the state soon “to announce that the housing debt has been waived”. READ THE EDITORIAL

TASMANIA’S historic housing debt will be fully waived by the Federal Government.

Federal Housing Minister Michael Sukkar’s office has confirmed to the Mercury that he plans to visit Launceston on Sunday “to announce that the housing debt has been waived”.

The call for the $149.6 million debt to be waived was the focus of a widely shared Mercury front page on June 20.

HOUSING DEBT DEAL A HISTORIC DAY FOR TASSIE

That front page sparked Tasmanian senator Jacqui Lambie’s interest — and she made the waiving of the debt the price of her support for the Federal Government’s income tax package.

The front page of the Mercury, July 20, 2019.

The announcement has been welcomed by Tasmania’s housing sector including TasCOSS CEO Kym Goodes who said the news would give homeless Tasmanians hope that a good life is a little closer.

State Minister for Housing Roger Jaensch said the Government had lobbied strongly for this outcome.

“Wiping Tasmania’s housing debt has been a priority for us and one we have been negotiating with the highest levels of the Federal Government to secure,” he said.

“We are after the best possible deal for Tasmanians and we welcome the Federal Minister’s confirmation of this very important announcement Sunday.”

The housing debt was incurred to pay for the construction of public housing between 1956 and 1989 and rips $15 million out of the state’s housing portfolio each year through interest payments.

State Housing Minister Roger Jaensch in his offices. Picture: RICHARD JUPE

The announcement that the debt will be waived has been welcomed by Tasmania’s housing and community sectors.

Ms Goodes said the news was overdue but warmly received.

“Thirteen years of under-investment is about to be acknowledged and right has finally prevailed,” she said.

“This very welcome change of heart by the Federal Government will have an incredible impact long term and Senator Lambie should be congratulated for achieving this outcome for her fellow Tasmanians.

“Shelter Tasmania, TasCOSS and our sector have lobbied long and hard, never given up on the people who needed us to be their voice — this is why the voice of those living the day to day reality of nowhere to call home is so critical in being loud and clear to our decision makers.

“It is critical that the funds are administered in a targeted way and have a direct impact on the lives of Tasmanians. We must ensure funds are 100 per cent quarantined and used strategically and only for social housing and homelessness support.

“Tasmanians who live in desperation for a place to call their own can have some comfort tonight that there is hope and a good life is a little closer.”

TasCOSS Kym Goodes said the news was overdue but warmly received. Picture: RICHARD JUPE

Colony 47 CEO Danny Sutton echoed Ms Goodes’ view that the funds must be used strategically.

“While this is clearly good news, we will be interested to make sure that these funds are committed to more social and affordable housing,” he said.

“We believe it is important that people who are homeless or at risk of homelessness should be able to access safe, functional and affordable housing as soon as possible. We are particularly interested in these funds addressing the needs of young people who make up nearly a third of our social housing register.”

Federal Housing Minister Michael Sukkar. Picture: GARY RAMAGE

Various Federal ministers have visited the state in recent months and have been urged by Mr Jaensch to forgive the debt so “we can stop spending Tasmanian money on Commonwealth debt and spend it instead on houses for Tasmanians”.

Most recently assistant housing minister Luke Howarth was in Hobart on August 5 to launch National Homelessness Week when he indicated a deal was imminent.

As well as raising awareness, the Mercury’s Give Them Shelter campaign has already resulted in the State Government allocating an additional $5 million in assistance for homelessness.