Relief in sight for state’s housing debt

The Federal Government has hinted that a deal is in the works for relief on the state’s longstanding social housing debt.

THE Federal assistant housing minister has indicated a deal has been struck to wipe Tasmania’s historic housing debt, but a formal announcement on debt relief could still be weeks away.

In Hobart on Monday to launch National Homelessness Week, assistant housing minister Luke Howarth said he believed action had been taken to relieve the $157 million debt, which each year rips $15 million out of the state’s housing portfolio.

“I think something has happened on it,” he said.

“I think Tasmania will hear something in the near future on that [an announcement of debt relief] but it’s not in my charter so I can’t give a lot of information on it.

“It’s a lot of money so we want to make sure that money is invested properly, but at the moment the Finance Minister and Treasurer are discussing that with State Government ministers and at some stage they’ll make an announcement, I’m sure.”

Federal assistant housing minister Luke Howarth, centre. Picture: AAP

Independent Senator Jacqui Lambie last month said she would support the Federal Government’s tax cuts in return for relief of the state’s historic housing debt.

Finance Minister Mathias Cormann said before parliament’s winter recess the Federal Government would work on a debt relief plan that would take six to eight weeks to deliver.

Federal opposition housing spokesman Jason Clare on Monday said “the Government should not dud Tasmania and should hurry up” on its commitment to address the state’s housing and homelessness crisis.

“It’s cold down here, there’s people sleeping rough in the freezing cold and the sooner the Government announce a plan to provide more permanent housing for people who really need it in Tasmania the better,” he said.

“It’s obvious that Tasmania needs help from the Federal Government, but what they have planned we don’t know. I encourage the Federal Government to make good on the commitment’s they’ve made to Jacqui Lambie to get funding here sooner rather than later.”

State Housing Minister Roger Jaesnch said he was urging the Federal Government to waive the debt.

“Jacqui Lambie has voiced the same policy we have — we want to see our Commonwealth housing debt waived,” he said.

“Our Government is working closely with the Morrison Government at the highest level on a deal that works for Tasmania. Until that’s off the table, we’ll keep pushing.”

A spokesman for Senator Lambie said debt negotiations were “alive and kicking”.