PO Box 210
Clifton Hill 3068
30 October 2016
I write to strongly support the housing infrastructure proposal,” Provide better access
to housing for the most vulnerable Victorians”. I encourage the government to adopt it and to progress as soon as possible. I fully support it as being in the Top 3 needs.
I am a financial counsellor working in the local government areas of Hume and Moreland. In that role I come in close contact with a larger number of clients suffering financial distress. These clients are those on Centrelink benefits and those who are working but earn incomes at the lower end of the spectrum.
In most cases the cost of housing is a large proportion of their income. I am concerned about working people and Centrelink recipients with children who need to rent from the private market. Rentals are commonly $1500 and more for a 2 or 3-bedroom home and that represents a major proportion on income, even for those who are working. Obviously for those on benefits the difficulty is much greater.
There is a raft of evidence that the cost of housing is out of control for people on these levels of income. There is also a raft of evidence that non-financial social benefits come from more affordable housing for more people. I will not repeat that evidence.
However, easing the financial burden so that families can exist in a proper manner is not the only benefit of a much larger investment in housing. Other factors to consider include;
- Keeping families together
- Reduced mental health stress currently attributable to housing and financial uncertainty
- Better and more effective delivery of other services and support
- The economic boost and employment caused by the building programme, particularly if training opportunities were required to be offered as part of the building contracts
- Reducing the seen and unseen levels of homelessness, with all is costs.
I would also make the following comments about public housing increases.
- There needs to be a material net increase in available units, not a sell off or replacement of current stock
- I note cases where people are clearly living in public housing that was rented to them when their family circumstances were different. A sensitive, but effective re-assignment program could be considered to free up space for more people. Better use of current stock could be added to Recommendation 7.2.1.
I am very pleased that Infrastructure Victoria has recognised this important priority. All the priorities are important, but I believe the provision of basic affordable housing is a more fundamental priority.
I hope to see the Government adopt this priority and make a real difference to the lives of regular people who are struggling and have not enjoyed the benefits of the overall increase in the economy.
David Balcombe
Financial Counsellor