Budget 09: Doubt over how long Govt's help will continue

The Budget has delivered more money for housing in the coming year, but has not made any provision to keep up the extra spending after June next year.

The document confirms that the Government expects to have spent an extra $20 million in the first half of this year on building or buying 86 new state houses.

It also confirms a further $92.5 million in the year starting in July on state housing upgrades, as announced in February, and $20 million for a Housing Innovation Fund which lends money to community groups to provide housing for low-income people, as promised in the National Party's election policy.

But there is no provision for either initiative beyond the coming year. A spokesman for Housing Minister Phil Heatley said the extra spending on state houses in the coming year was "a short-term stimulus and to be reassessed".

"Everything is unfolding so quickly," he said. "For example, we have $20 million for the Housing Innovation Fund but haven't tagged what is going to be brought forward [beyond June 2010]. It's just a matter of waiting and seeing and re-evaluating. I'm quite sure there will be a Housing Innovation Fund, it's just what it gets that's uncertain at this stage."

The former Labour Government budgeted $35.9 million last year for new state houses and expected only $1.9 million in capital receipts.

The National Government believes it will have actually spent $52.3 million on new houses in the year ending next month, including the extra $20 million announced in February.

But it has allocated just $9 million for new houses in the year starting in July, while capital receipts will grow to $4.6 million in the coming year, $9.2 million in the year after and $22.2 million in 2011-12.

ROOF OVER YOUR HEAD

UP
* State house building & upgrades +$92.5m in 2009-10
* Housing Innovation Fund +$20m in 2009-10

DOWN
* State house building & upgrades -$82.5m in 2010-11
* Housing Innovation Fund - $20m in 2010-11