by Jim H.
After
many years of underfunding, neglect and the loss of a significant revenue
stream after fairly extensive selling of housing stock to the private market,
Victoria’s Ministry of Housing is so far in debt that it is in financial
crisis.
Rather than being an alternative form of housing for
all Victorians (something demanded by those who had fought for this right
before us), public housing has been turned into a vehicle used to bunch
together and isolate many of the least fortunate into inadequate housing. For
years the system has been deliberately underfunded, maintenance has been neglected,
and public housing stigmatised as an option that most people should not want.
Around this, a costly and dysfunctional state
apparatus has been created. Those who work in it mean well. They work hard to
do the best under the circumstances. But the “system” is not designed to work
in the interests of those it is purported to serve.
Application
of neo-liberalism
The application of a neoliberal agenda that took swing
in Victoria with the Kennett government and has never really ended, led to the
selling of a large chunk of housing stock to the private market. It was enough
to significantly dent the rent income stream.
In recent years, after so long a period of maintenance
neglect, there was no option but to suddenly devote many millions of dollars to
shore up dilapidated housing estates. Now there will be no more money for
maintenance on the required scale, and officially, some 10,000 dwellings will soon
be marked as uninhabitable.
This state of affairs should never have come about. It
could have been avoided with some proper planning. Of course, this entails a
very different view of public housing to that of those who are running it. Lip
service is given to public housing, but the very nature in which it has been
provided has ensured that it would be undermined.
Over the last few years the Ministry of housing has
found itself in the red to the tune of $50 million a year. This is expected to
climb up to $100 million soon, if the situation continues as at present.
In their own internal discussions, those running the
system have already been talking about selling off a large chunk of the
remaining housing stock. Knowing that
the large estates may be more difficult so sell in the present circumstances,
the preferred option is to place them under the management of religious or
private business based agencies. This is something akin to the handing out of
employment services that occurred with Centrelink. Millions of dollars of
Victorian tax money will be handed over to private providers, who will
undoubtedly be provided with a profit guarantee as usual.
Aside from direct handouts, there is discussion about
imposing yearly means testing. Only those who have not got a job will be
allowed into and stay in public housing. Once you have a job, you will have to
leave. People on NewStart are seen as only meriting temporary housing.
If sole parents are denied their pension after a certain
period of time and compelled to transfer over to New Start (as has been
mentioned federally), this vulnerable section of the population will be
particularly hard hit.
The total effect will be that a large number of
Victorians who depend on public housing will be denied this right. Add to this
an already declared consideration to raise rents substantially.
Thousands of public service workers would face the
loss of their jobs with the shrinking of the department and other linked
services. This is wrong. Not only would this add to the unemployment
statistics, it would deny the assistance that they already provide to many in
need.
It is very important to defend public housing against
cuts and demand that much more be invested into providing decent and affordable
social housing for many more Victorians.
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