Bridget Archer:
It's tremendous to welcome Minister Michael Sukkar and Minister Roger Jaensch here to Launceston today for what is a really exciting and in fact historic announcement for the people of Tasmania. I'd like to introduce Michael to tell us what we are announcing today.
Michael Sukkar:
Well thank you. Thank you, Bridget. It's the worst kept secret in Tasmania but Bridget can I thank you for having us here in the great electorate of Bass in Launceston. Wonderful to be joined by Minister Roger Jaensch who I've got to know very well and certainly consider a friend, over the last couple of months of work on this very important project. And of course I'd like to acknowledge Senator Duniam behind me who is a great champion for Tasmania and who has also been integral in the work that we are formally announcing today.
As I said a badly kept secret and that is that today, as you saw, we've formally signed the agreement which discharges Tasmania's historic housing debt to the Commonwealth. At present that sits at $157 million that the Commonwealth is waiving today and over the course of that loan will mean that Tasmania saves interest and principal repayments of $230 million.
Importantly, this agreement stipulates that every single dollar of that $230 million will be reinvested by the Tasmanian State Government into housing projects and homelessness services to make sure that it is going exactly where we want it to go and that is to alleviate some of the significant housing issues that are felt in parts of Tasmania. This agreement also stipulates, and we are glad to partner with the State Government, on their pursuit of planning and zoning reform to make sure that planning and zoning throughout Tasmania can ensure that housing supply keeps up with population growth and keeps up with the outstanding economic activity that we've seen in Tasmania over recent years.
This has been in process for a couple of months. Within a couple of days of being appointed Minister for Housing and Assistant Treasurer, Minister Jaensch contacted me and raised this issue with me and one of the first formal duties in the role was visiting Hobart for a forum on some of the issues that were being particularly felt in Hobart and throughout Tasmania. Since then, we have worked quietly together behind the scenes to negotiate this agreement, to make sure Tasmania was able to meet what is a pretty high bar that the Commonwealth was setting. A high bar because the Tasmanian State Government is a trusted partner. A state that is investing heavily in housing and one that we know is going to meet the terms of this agreement in ensuring that its planning zoning system is fit for purpose and in the best possible shape to deliver the housing required for Tasmania's future needs.
So we look forward now to watching the Tasmanian State Government deliver more projects like the one we're at today. Visiting these flexible units that are going to be providing secure, stable and I think quite nice housing for some Tasmanians very shortly. These are the sorts of projects that this money will go towards funding even more of, and hopefully ensuring that members like Bridget Archer here in Bass and Gavin Pearce in Braddon, who are constantly coming to me and fighting for Tasmania, are going to be able to at least feel that the Commonwealth and the State Government are working together.
So can I thank again Minister Jaensch for being a great partner here. I should also acknowledge and thank the entire Senate Liberal team, most particularly Senator Duniam for the outstanding work he's done. And of course I want to acknowledge Senator Jackie Lambie. This has been a team effort. It was started by Minister Jaensch within two days of me becoming minister, reiterated when I visited Hobart and since then through Senator Duniam, other Tasmanian senators, Bridget Archer, Gavin Pearce and of course Jackie Lambie. A team effort that has meant we are here today delivering on what I think is an historic achievement for the Commonwealth and Tasmania and I'd like to now ask Minister Jaensch to say a few words and again to thank him for his outstanding work on this deal.
Minister Jaensch:
Thank you, Michael. Thank you very much Minister Sukkar. Welcome back to Tasmania. You've been here twice, in the time that I've known you. The first time, we sat down and talked about this. The second visit we are delivering it. It's a fantastic result.
For decades Tasmanian governments and social housing sector advocates have been raising this issue of Tasmania's historic housing debt and asking for it to be relieved so that we can redirect that money, that investment, those Tasmanian dollars into housing for Tasmanians. It's taken until now, with the Morrison Government in Canberra, the Hodgman Government here. Tasmania's housing situation being a top priority for both of our Governments that we've been able to turn a deal into an agreement. We've signed it today and I couldn't be prouder to be part of Team Tasmania that has delivered this result today and over the decades of payments that will now be redirected into housing. So I think it's appropriate to offer the Minister Sukkar, Honorary membership of Team Tasmania. [inaudible] and obviously the Tasmanian Federal Liberal Team in the Senate and Reps [inaudible] but also Jackie Lambie as well. She has done a great job [inaudible] the North West coast and is [inaudible] passionate about looking out for Tasmanians who are doing it tough. She's had a role in this. We've had a number of meetings and she's been part of Team Tasmania on this one too.
So the Hodgman Government has been pursuing this for some time. It's been terrific to be able to lead our negotiations with Minister Sukkar to turn a deal into an agreement that works well for Tasmanians. I'm pleased to say that this represents additional Tasmanian money going into housing for Tasmanians that would have otherwise gone off our shores. We've been able to secure an arrangement that ensures that despite what some have been speculating, there is no claw back of this saving in other parts of the grants, or the GST due to Tasmania. So it is a net benefit to Tasmania as well. And we are solid in our undertakings that we have given to the Commonwealth to make sure we are investing those savings straight into housing for people who need it most – people from our social housing waiting list across Tasmania and to make sure that we are also keeping Tasmania's housing supply in line with projected population and settlement patterns for our State.
So as many people would be aware we are close to now delivering Australia's first state-wide planning scheme which will make it quicker and simpler to build houses like these in residential zones right across the state. We've been working on some very responsive, quick turnaround legislation and planning responses to the current housing shortage, through re-zoning surplus government land for housing in places like Huntingfield, in places like Newnham, where we are today also, and Devenport, Moonah and Rokeby across the state. Where doing that and we're also investing in things like new planning zones for medium density in fill apartment style developments for our urban areas so that growth in housing doesn't mean necessarily urban sprawl. The greater density of more people living closer to services in our cities. So that is our commitment to the planning reform aspect of ensuring that we get housing right in the future.
The savings that we're making through this excellent agreement will be directed into ensuring that we can deliver the supply that goes with that into more housing for Tasmanians who need it.
So thanks again to Minister Sukkar for coming back, for turning our [inaudible]. Thank you to team Tasmania for backing it in all the way. And thanks to people like John de Jong from de Jong constructions and Tasmanian firms who are turning our investment around quickly to produce high quality homes that suit Tasmanian conditions and meet the needs of the people who are on our waiting lists for housing. There will be, at least, we reckon, around 80 more dwellings like these each year, possible thanks to [inaudible] our savings being redirected into things that Tasmanians need. So thank you for being here today.
Journalist:
There's concerns that have been raised that there's devil in the detail and that the money isn't actually going to benefit housing at all. Can you allay those concerns?
Michael Sukkar:
Well that is absolutely ridiculous. Anybody that reads the agreements we have just signed now makes clear that there are some pretty clear conditions, absolutely. The conditions are that every cent needs to be spent on housing and homelessness. I think Tasmanians would expect that. The agreement stipulates that these payments or the forgiveness of this debt can't be offset [inaudible]. I don't think anyone in honesty could argue that this agreement does anything other than ensure every single cent is redirected to where Tasmanians expect it to be.
Journalist:
Do you expect Jacqui Lambie to now support the Government position on drug testing for welfare recipients now that this has been passed?
Michael Sukkar:
No, this is standalone issue that is of significance to Tasmanians and therefore is of significance to the Federal Government. As I said, this is not something that has just occurred overnight. Minister Jaensch and I has been discussing these issues within a couple of days of me becoming the Housing Minister. Obviously it's had input from Senator Duniam, Senator Colbeck, Bridget Archer , Gavin Pearce and many others and Jacqui Lambie. So it's been a team effort from Tasmania. This stands on its own. This is a standalone agreement and the reason why the Federal Government is willing to take what has been an unprecedented step to forgive this debt is because we have confidence that the Tasmania State Government, led by Will Hodgman, will spend the money wisely on projects just like the one we've seen today.
Journalist:
But this deal wouldn't have happened without Jacqui Lambie?
Michael Sukkar:
Well this deal would not have happened without a chorus of voices, starting from Minister Jaensch, continuing with Bridget Archer and Gavin Pearce and Senator Duniam and Senator Colbeck and others. That's why I refer to it as a team effort, because it certainly has been. As I said, coming here within a couple of days of becoming Minister, it became clear to me that there were some significant issues and once we as a Federal Government became comfortable and quite enthusiastic about the vision for how the money would be spent, we've just been hammering out the details since and today is the culmination of that work.
Journalist:
Has the housing debt been excised from the Commonwealth Grants process?
Michael Sukkar:
So the agreement stipulates that the amount that has been forgiven, cannot in anyway be offset through other grants that would otherwise be made to Tasmania and cannot offset any GST revenue. This is an additional amount of money that as Minister Jaensch said, would have otherwise been repaid to the Commonwealth [inaudible], the only stipulation is every single cent must be spent on housing, just like the one we're here at today, and homelessness services. I would think that Tasmanians would expect that money to be spent in that way.
Journalist:
Can you confirm then that Tasmania won't lose any other Government funding?
Michael Sukkar:
I can 100% confirm, that they won't lose any funding. This is an additional $230 million for Tasmania – I can't be any clearer than that – that will be spent on housing and homelessness services.
Journalist:
Does this set a precedence for other states now to seek a similar deal and if so, what impact is that going to have long term on the Federal Government?
Michael Sukkar:
Well, I would expect that other states and territories will look at this very closely. I think they'd be silly not to. But Tasmania has met a very, very high bar and in discussions with Minister Jaensch from day one, he understood that the bar was going to be pretty high for the Commonwealth to do this for Tasmania. Tasmania has met that. A) Ensuring that the money is spent in the right way. B) Undertaking serious planning and zoning reform because in the end, if we don't have a planning and zoning system that helps houses come out of the ground, it's very difficult to get housing affordability under control and certainly rents under control. Tasmania being a trusted partner, being a Government that is already investing hugely into housing and meeting those additional requirements means that the bar is pretty high, and any other states that are looking at it and would realise pretty quickly that it's a high bar. But if they were willing to meet that very high bar, of course the Federal Government would consider anything on a case-by-case basis.
Journalist:
There are states with a few more marginal seats than Tasmania. Are you expecting a few more knocks on the door now?
Michael Sukkar:
No, in the end, this is about a unique housing issue here in Tasmania. Tasmania has had unprecedented house price growth. It's at its peak, particularly in Hobart and some regional areas. The vacancy rate for rentals is 0.5 per cent which means that there's virtually no rentals available so it's a very unique situation in combination with a State Government that is willing to invest all of those savings into the right projects and also a State Government that is willing to undertake serious planning and zoning reform. So the bar is high, Tasmania has met that bar and every other state and territory will look at that I expect and make that assessment themselves.
Journalist:
Has the Federal Government imposed any guidelines [inaudible] to the State Government about how many houses should be built in a certain period or anything like that?
Michael Sukkar:
No, we trust that the Tasmanian State Government under the National Housing and Homelessness Agreement, which does have a range of parameters, will be able to deliver on the projects that are expected under that agreement. We believe that provided the Tasmanians State Government directs the funding to the right areas, we have no doubt that they will be able to build the projects just like the one we are looking at today. The Tasmanian State Government is a service delivery agency that is well-placed to ensure that all of those dollars end up in tangible projects or services.
Journalist:
If it does transpire though that there is a labor shortage, and that these homes physically can't be built, what then?
Michael Sukkar:
Well that's a very defeatist position, I might say. I think that we're very confident that Tasmania can deliver on what they've committed to and we're very confident that in the end, more people will have a secure and stable roof over their head as a result of this agreement.
Let me just add that I know that we've just had a signing ceremony and as journalists and politicians, we think about this in quite an esoteric way but this agreement today will mean more people with roofs over their heads . More people with a stable life and that's what this is about. I know we get caught up about the dollars and cents in the agreement but it's about real people and real lives and one of the reasons why we're visiting here today with Bridget Archer is to tangibly indicate that these will be places where people live and hopefully [inaudible].