Giles Government's $2 billion plan for remote housing

Posted On July 18, 2016

Adam Giles
Chief Minister of the Northern Territory

Bess Price
Minister for Housing

The Giles Country Liberals Government has unveiled a transformational $1.645 billion program to build 240 houses a year for eight years in the Territory's remote communities.

Chief Minister Adam Giles said the proposed Better Remote Homes program would deliver more houses - and at a greater rate - than any previous government housing initiative in NT history.

Together with the current $350 million National Partnership on Remote Housing, the Better Remote Homes program would achieve his government's target to build 2087 new houses in remote communities by 2026.

"These programs are worth almost $2 billion and amount to the Territory's biggest funding commitment to remote housing since self-government 38 years ago," he said.

"It means we will be meeting the current demand for housing in remote communities."

Housing Minister Bess Price said the Better Remote Homes program would make dramatic inroads into the persistent problem of overcrowding in remote communities.

"This will see better housing tailored to the needs of people in the bush who have suffered inferior housing for far too long," she said.

Mrs Price, born in the remote Central Australian town of Yuendumu, said the first house she lived in had only one room which was shared with two other families.

"This program goes a long way to ensuring that my Aboriginal generation will be the last to grow up that way."

Mr Giles said his Government was already committed to building 380 new houses and delivering over 1000 upgrades over the next two years under the National Partnership on Remote Housing with the Federal Government.

This included 236 new houses to replace dwellings categorised as "beyond repair" which had been left behind by failed programs under previous Labor Governments.

"Among the new houses being delivered under this national agreement, my Government is building an additional 152 new homes which we've been able to fund by reducing our administration costs to just 10 per cent – down from the 30-40 per cent levels under Labor," he said.

Mr Giles said the Better Remote Homes program would commence from 2018-19 and would also include associated planning, road construction and essential services such as water, electricity and sewerage.

The annual spend for the eight-year program was expected to be more than $200 million which would come from the Federal and Northern Territory governments as well as the private and philanthropic sector.

The Federal Government funds all the new and refurbished housing under the current National Partnership on Remote Housing up to 2018.

"While we don't expect that federal funding for the Better Remote Homes program over the following eight years to be as generous, it will be significant," Mr Giles said.

"And my Government will support the program with a commitment from its Capital Works Program for each of the eight years for land servicing, subject to negotiation with the Australian Government and investment from the private sector for the total funding package."

Mr Giles said the new Remote Housing Development Authority (RHDA), to be established from July 1, 2017, would be responsible for delivering the Better Remote Homes program and would be empowered to raise capital for housing construction and infrastructure from private enterprise through a range of instruments including social investment.

""We are confident that the private sector can be a significant source of investment funding for remote housing," he said.

"It's an option we intend to vigorously pursue as the heavy cost of fixing remote and urban public housing is such that government just can't afford to do it alone.

"The early indications are that the potential of private social infrastructure investment is very promising with private consortiums, including large superannuation funds, having already submitted proposals to Government."

Mrs Price said that the Giles Government would ensure that long-term training opportunities were maximised for Aboriginal people and many hundreds of jobs created under the remote housing programs.

"More importantly, local supply of materials and services will be developed that will provide permanent and ongoing economic opportunities in communities right across the Northern Territory," she said.

Mrs Price said the RHDA would also ensure there was local Aboriginal leadership and decision making.

"This could include having Aboriginal people lead the design of three, four, five and six bedroom homes, which was an important aspect of the rebuilding work after the cyclones on Elcho Island," she said.

Mrs Price said her Government would consult and work with the Territory's four land councils to support the development of the additional houses under the Better Remote Homes program.