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Labor’s housing policy means rent controls

Labor’s pledge to help people in private rental housing by establishing a "fair rent mechanism to review unreasonable rent increases" can only mean the introduction of rent controls, according to the Minister for Housing, Ann Henderson.

"The current Residential Tenancy Act already provides a fair, market based review process and any attempt to change this would have a detrimental effect on the supply and quality of private rental accommodation," Mrs Henderson said.

Since October 1992, the Coalition Government has transformed Victoria’s public housing into a responsive accommodation service directed toward helping those in greatest need, the elderly, people with disabilities and those most at risk of being homeless.

Mrs Henderson reminded us that Labor left a legacy of dilapidated, run-down broad-acre housing estates and a huge maintenance backlog. She went on to warn that Labor’s current housing policy would result in a massive cut of 12% in public housing stock for people with a disability.

"Labor plans to commit a paltry 5% of housing stock for people with a disability compared to the 17% of public housing which currently accommodates people with disabilities.

"So in fact, Labor, which prior to 1992 did not care or cater for people with a disability, will now slash 12% of public housing stock for these people in need," the Minister said.

Mrs Henderson said the Coalition Government had also increased the total number of public housing stock by more than 5000 houses and units. Waiting lists had dropped from more than 53,000 when Labor left office to just under 39,500 today, plus some 5000 people already in public housing but awaiting a transfer to a different area. It should be recognised that others on the waiting list are currently housed privately with rent assistance.

In July, the Kennett Government secured a new landmark $1.2 billion Commonwealth State Housing Agreement that guarantees funding for four years.

"Labor’s commitment of $90 million over three years is unfunded under the Commonwealth State Housing Agreement and, if honored, would help drive Victoria’s budget back into deficit," the Minister said.

Over the past seven years, the Coalition Government has redeveloped Melbourne’s three major overnight shelters, has more than doubled medium-term crisis accommodation through the $100-million Transitional Housing Program, and has refined and improved the allocation of public housing to ensure those in greatest need receive priority access.

"Since 1992, more than 3500 purpose-built older persons units have been acquired, and more than 2500 public housing properties have undergone significant modification to meet the needs of people with physical disabilities."

(News Release, Office of the Minister for Housing, 2 September 1999)