Tuesday, 9 March 2021

Increase Social Housing and Review Australia Competitive Neutrality Strategy

 

Australian Governments of all political persuasion need to improve policy responses to the issue of homelessness. After all public housing stock did not diminish by accident.


The reduction of social housing was deliberate decision by orthodox economic policy minds who took the view that private rental offered a better solution for most people. Two decades and half down the track it is evident it has not worked for certain sections.


But it is not a secret that some people with complex needs struggle to access or maintain private rental. There are complex factors at play including psychosocial challenges and long-time unemployment. These barriers may also limit the rate of access to generous Government homeownership schemes.

                                   Bentley 360 public housing development - Source: WA Government Housing

Higher rates of Aboriginal people, women running away from domestic violence, and women over 50 form a big part of Australia’s homeless, to name some.


A bit of understanding of policies that encouraged reduction in social housing can help us in re-thinking policy decisions and strategies in dealing with where we find ourselves today.


The mid-1990s saw Labor and Liberal States and Federal Governments move towards implementation of the National Competition Policy and neo-liberal strategies. The public housing stock came under scrutiny as neo-liberal thinkers set out to instil market discipline in the public sector.


State Governments moved towards commercialisation and corporatisation – that means acting more like businesses. They applied new notions of Competitive Neutrality – apparently to ensure Government housing provision did not get in the way of private businesses.


In practice this meant States privatising significant housing stock and proportionately reduced development of new housing stock.


What for? Well, using neo-liberal filters they held the view that their approach ensured more efficiency so that private rental could compete freely and not be ‘crowded-out’. And certainly it seemed an attractive proposition for Governments committed to reducing expenditure.


This also meant Federal Government policy calculations preferred to see use of rental vouchers (rental assistance through Centrelink) instead of increase in public housing investment.


All States and the Feds are signatory to State-Fed Agreements that require them to stick to Competitive Neutrality. Federal-State funding arrangements also embed how such things are to be done.


As such, in my view it is not easy for individual State Governments to change the system because they are all tied to notions of corporatisation and commercialisation. Adherence to these arrangements is regarded as part of good governance.


Mind you there are also enough indications that sometimes competition policy strategies get implemented in spheres of human services contrary to the initial intention of the reform.


There isn’t a lot in Australia’s National Competition Policy texts to support the idea that people with complex psychosocial needs were ever going to be adequately supported in the private housing rental market.


Until current policy makers and advocates start scrutinising workings of Competitive Neutrality and commercialisation practices for at-risk groups in the housing sphere, any solution will be at best patchy.


That all said I am also a great supporter of homeownership policies implemented by the Feds and States in recent times and way back. After all without existing homeownership schemes the ranks of the homeless will be worse. But this success should not take away our collective responsibility to voice our support for people with complex needs that are homeless or at-risk of homelessness. To this end, the National Cabinet (Former COAG) needs to look again at impacts of Competitive Neutrality for at-risk groups.

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