By Margaret Gleeson and Lisa Macdonald
Nearly 25% of the Australian population lives in rented accommodation. Almost all will be affected by the federal government's proposal to slash $500 million (50%) from its housing budget.
The government plans to "reform" the 1945 Commonwealth/State Housing Agreement, a triennial program agreed between the Commonwealth and the states through which funds are allocated to the states for a range of housing services, most notably capital funds for public housing.
Between 1986 and 1995, Commonwealth funding for housing declined by 40% in real terms. According to the Australian Council of Social Service, this has resulted in a decrease in the release of new public housing stock, an 85% increase in numbers on the public housing waiting list and an increase in the length of time people languish on that list. In southern Sydney, waiting times are from five years for a two-bedroom flat to eight years for four-bedroom accommodation.
The Keating government's Community and Nation statement last December laid the groundwork for the current attacks by announcing a shift in public housing policy to a market-driven model. The ALP's plan, not finalised with the states before the federal election, shifted the bulk of federal funding away from investment in more publicly owned accommodation to providing more rent assistance to welfare recipients in private rental. The move was applauded by the establishment media, the housing and real estate industries and the banks.
Now the Howard government proposes to cease capital funding for housing altogether, instead extending rent assistance (currently paid through the social security system to low-income people renting privately) to public and community housing tenants.
Higher rents
An immediate consequence will be that rents for public housing, which are currently limited to 25% of tenants' income, will be raised to market rates as housing departments and services try to make up the lost funding.
Harvey Volke from the Western Suburbs Tenants' Advice Service told a meeting of tenants and housing activists in Sydney's western suburbs on August 31 that it was unlikely that the amount of rent assistance provided would compensate for the abolition of rebated rents (see table). "The increase in public rents will force more people onto the private rental market, where vacancy rates are currently at an all-time low", he said. This in turn will push rents up across the board.
Uniting Church minister Harry Herbert agrees. He told the meeting: "There is just not enough private rental. The private market won't cater for low-income people. There just isn't the investment return."
The impact on migrants will be particularly severe. Newly arrived migrants are over-represented in the private rental market and will be hardest hit by rent increases, particularly since they are now denied social security assistance for two years after arrival in Australia.
Increased homelessness
Housing organisations predict that governments will begin selling off existing public housing stock. "The corporatisation of public housing which is involved in these proposals is the first step to privatisation", Herbert said. "Kennett has said that he will sell off 50% of the public housing stock in Victoria when the changes come through. Similar pressures will be exerted on Carr to do the same in NSW."
The sell-off, combined with a reduction of up to 80% in public housing construction when capital funding dries up, will seriously exacerbate the housing shortage and result in much more overcrowding and homelessness. In NSW alone, where there are more than 130,000 public housing tenants, another 92,000 families are on the waiting list.
The redevelopment and maintenance of existing public housing will also be drastically reduced. According to Volke, this will lead to "urban decay and ghettoisation". ACOSS points out that essential maintenance is already often neglected.
Funding for emergency accommodation is still unclear, but there will undoubtedly be an increased demand in this area from people unable to enter the private or public rental markets.
The prospect of massively increased homelessness in Australia is stark. Homelessness in the Lucky Country 1996-200, a national conference held in Melbourne on September 4-6 (Senator Amanda Vanstone was to have addressed the conference but cancelled due to fears of disruption by protesters), was told that the Coalition's cuts to labour market programs, social security benefits, Aboriginal programs, health and education will inevitably create more poverty and therefore more homelessness.
Research presented by Chris Chamberlain from Monash University revealed that 10-14% of school children in Australia are now at risk of homelessness. Aboriginal people, while making up only 1% of the population, already make up 14% of those using services for the homeless.
"People who are homeless are almost all unemployed", said Netty Horton from the Council of Homeless Persons, adding that without job opportunities, the pathways out of homelessness are very limited.
Market no solution
The details of the Commonwealth's housing proposals were to be released at the end of August with the states responding at a Commonwealth-state housing ministers' conference in late September.
Despite no announcement yet, tenants' groups and public housing organisations are not waiting. In NSW, the campaign against the changes is being coordinated by the Coalition to Save Public and Community Housing. It involves public meetings, rallies, petitions and a "Save public housing" postcard campaign.
The campaigners argue that low-income private tenants need more income support, but not at the expense of public and community housing. Herbert says, "It's absurd to suggest that the private market will solve people's housing problems. It's the same private market which created 8.5% unemployment, and it won't fix that."
Rod Plant from Shelter NSW agrees. "The only way to fix housing-related poverty is to expand public housing", he said. "What is needed now is direct political action."
Summing up the view of public housing tenants and service providers, Volke says, "This government has declared war on the poor. It's time for a fight back".
To find out more about the campaign, telephone Shelter on (02) 9267 5733.