Peter Perkins, Sydney
As Prime Minister John Howard forces disabled and single-parent families to work, NSW Labor Premier Morris Iemma's government is pushing many more into greater economic hardship through its market-based approach to public housing. Public housing tenants will find it increasingly difficult to make ends meet when state government changes to tenancy agreements are fully implemented.
This looming social crisis prompted the Macarthur Housing Coalition to organise a strategy forum in Campbelltown on September 19. Held on a work day, the forum attracted about 100 people from all over Sydney, as well as an activist from the Bega Tenants Association, some 500 kilometres away. Approximately 70% of attendees were women who, alongside their children, have the most to lose from these regressive policies. Representatives from Shelter, the Public Tenants Union, the NSW Council of Social Services (NCOSS), and welfare and legal NGOs also came, as did NSW MP for Macarthur Graham West, NSW opposition housing spokesperson Andrew Fraser and NSW Greens MLC Silvia Hale.
Unfortunately, the forum ended up being more an opportunity for tenancy groups and tenants to vent their frustration rather than a serious strategy discussion. There was, for instance, no suggestion that public housing tenants should try to organise against these changes, other than to write to their local MP.
It's hard to say whether this non-strategising was deliberate or a reflection of political naivety. However, participants did get a better understanding of the likely impact and problems of the NSW government's polices, which include: the decrease in disposable income for tenants; the poverty trap for those trying to get out of public housing; the break-up of families as a result of economic stress; the likely increase in crime and punishment; and the creation of "enclaves of disadvantage".
The peak tenant bodies outlined the proposed changes to the eligibility rules for tenancy from "income" to "income and need". Shelter said that this would "compound problems associated with concentrating people with complex needs in one form of housing". Ending "security of tenure" is another problem. New tenants will face a set of renewable fixed-term leases. Although this will be over a 24-month period, new tenants are being given six-month leases. Tenants will also be reviewed at the end of the lease period and possibly turfed out if they fail to meet the draconian eligibility criteria.
Rent levels will be set at 30% of income for "moderate income" earners, the exact definition of which was not given although some have suggested this will be $29,000 per annum for single persons, and up to $46,000 per year for a couple with two children.
Current recipients of the family tax benefit already pay at least 11% of FTB in rent. Under the new arrangements they will be expected to pay at least 15% of FTB in rent. Tenants paying market rents will be subject to review and public housing rents will be adjusted in line with those charged in the private sector.
All public housing tenants will be charged for water use, an unfair practice as tenants have no control over the maintenance of leaking taps or water-saving devices and many do not have individual water meters. Tenants without meters will be charged for weekly water usage based on the total water use of all tenants divided by the number of tenants — a method that is hardly going to encourage water conservation.
These new revenue streams are expected to raise an additional $640 million over the next 10 years.
Expenditure on public housing is obviously not a priority for the Iemma government. According to the NSW budget papers 2005-06 government funding for housing totals just $488 million. Compare this to the handouts to private enterprise — $1390 million — and increases of 84% between 1996-97 and 2005-06 in expenditure on "public order".
[Peter Perkins is a public housing activist.]
From Green Left Weekly, October 26, 2005.
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