Page 1868 - Week 09 - Thursday, 19 October 1989
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I am a bit concerned about the 2.6 per cent increase in the stock of Housing Trust dwellings being equated with the estimated household formation rate because that household formation rate includes public as well as private housing. It is my belief and the belief of my party that most people certainly would prefer private housing - if they can possibly have it. On that basis that figure may be too high and inaccurate if we are simply talking about Housing Trust dwellings and not about private household formation as well.
I move now to rental policy. Again on page 2 of her review, the Minister states:
There will be a 20 per cent increase in rent for higher income tenants, taking them towards market levels.
On the figures I have, I understand that about 15 per cent of public housing tenants in the ACT are people on very good incomes indeed, people who certainly can afford to pay the market rate. There is no real reason why people who can afford it should not pay the full market level.
We then come to the question of how that market level is to be determined. I know that there are some fears in the private housing sector that the criteria used by the department may not be quite as accurate as they should be. I would strongly urge the Minister, when assessing market levels, to use the expertise in the private sector to the greatest possible extent to ensure that a true market level is ascertained and charged to government tenants who can pay that full market level.
I think it is particularly important that people who can afford to pay the proper price for public housing should do so because there is, as the Minister has also stated in her program, a series of upgradings of many public houses. Many of these houses are now 25 or 30 years old, an age at which the wires need replacing and certain other renovations are needed. I understand that in many cases those renovations cost between $30,000 and $40,000. Indeed, I have seen a few homes which are being renovated and most capably so. But this all costs money; it has to be paid for, and it is essential that public housing be made to pay its way as much as it possibly can.
At the bottom end of the scale in terms of rent we have people who are destitute, receiving either unemployment or sickness benefits or some type of benefit from the Government. Accordingly, presently 20 per cent of their income is spent on rent. I think it is essential that this is collected. A couple of statements that the Minister has made recently about people going into arrears concern me. I think it is most important that this Government ensures that people contribute - even if it is only 20 per cent of their income - towards the cost of their housing. If they
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