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© Copyright David Mathews 2011 1 |Page 
Speech to Regional Development Australia ACT¶s CanberraLeaders¶ Consultative Forum17 May 2011
 
Mr Craig Sloan, Chair of Regional Development Australia in the ACT,members of the RDA ACT Committee, distinguished guests, ladies &gentlemen.I would first like to acknowledge the traditional owners of the land we aremeeting on today and acknowledge their elders past and present, andthe ongoing contribution they make to our beautiful city and region.
 
Many thanks to Robert van Aalst for the invitation to join in theconversation about opportunities and solutions to improve housingaffordability in the ACT.We¶re talking about social inclusion this afternoon and that requires aholistic perspective that traverses the landscape of individualexperiences within an ever changing political, economic and socialcontext.
 
Social inclusion is not a single action that Government should take, butrather a lens through which the structures and functions of governanceshould be viewed, decisions considered, and their impacts on vulnerablepeople understood. Such a lens encompasses all aspects of policymaking from environmental planning, through economic development, tohealth, education and social policy.
 
To have policy makers see issues through the lens of social inclusion isan important step in redressing inequality and reducing disadvantage inour society.
 
 Affordable housing itself is a right enshrined in several internationalconventions and is a necessity for a sustainable, inclusive and well-functioning community.
 
We know that we have significant challenges in achieving this aim here
 
in the ACT given we had over 1,000 people recorded as homeless inthe last census in 2006. In the past 5 years, the average property pricein the ACT has grown from just on $400,000 to $550,000. The averageyear-on-year price for all residential properties to February 2011 was up7.1%. Full time ordinary time earnings for the last 5 years were up 4.3%.
 
 
© Copyright David Mathews 2011 2 |Page 
In order to look at future possibilities, we must first understand our past.In its early years Canberra's housing was entirely government-builtto house the many public servants that moved to the city. Unlike manyother Australian cities, Government housing was dispersed acrosssuburbs rather than concentrated in one area.
 
When responsibility for public housing switched to the ACT governmentin 1989, the stock of government houses in Canberra was alreadyageing. Planning at the time focused on quickly housing a rapidlygrowing workforce. Canberra has since matured with its own privatehousing however, the concentration of federal government employeeson higher average wages than the rest of the nation has been one of thelegacies that has contributed to the rising cost of housing.
 
There are other multiple factors that have contributed to the housingaffordability crisis including: access to cheaper finance, the general cycleof long term economic growth, low unemployment rates, the demand for rental housing and associated increasing costs, changing patterns of employment & urban development, and broader economic, cultural anddemographic drivers such as the move to smaller and more diversefamilies.
 
Changes in the labour market have had major impacts on housing costs& urban development, and in turn, a lack of affordable housing makes itmore difficult ± and therefore more costly ± to recruit and retainemployees. The availability of affordable housing plays a role in wherebusinesses decide to build, relocate or expand their operations. From anemployer¶s perspective, a lack of affordable housing can certainly putthe local economy at a competitive disadvantage.
 
There is also a risk of significant social and economic exclusion as aresult of a lack of affordable housing. As our population ages, thechallenge is to develop housing choices for people, providing flexibilityas the need for support increases. Ageing women are particularlyvulnerable as they generally have a lower degree of housing securityand therefore choice of appropriate accommodation as they age.
 
Both the Federal and ACT Governments have increased their investment in affordable housing over the last few years. Theintroduction of the National Affordable Housing Agreement in 2009initiated a whole of government approach in tackling the problem of housing affordability.
 
 
© Copyright David Mathews 2011 3 |Page 
The Housing Affordability Fund is addressing holding costs for developers and the cost of infrastructure investment, targetinggreenfields and infill development.
 
Locally, the Affordable Housing Action Plan has seen the release of more and more land, fast-tracking the approval process for greenfieldsites, providing stamp duty concessions for eligible first home buyers,the introduction of the Land Rent Scheme and measures to ensure that15% of new residential estates have house and land packages availablebelow $300,000.
 
CHC Affordable Housing is delivering up to 1000 new properties for saleand rent, and new public housing stock is being developed for older Canberrans to provide a variety of options and locations, close to shopsand transport, helping ease the demand on public housing for larger family homes.But these measures in themselves still cannot address the needs of our burgeoning homeless population.
 
The Street to Home outreach program for rough sleepers run by StVinnies has attracted significant government funding over the past year and a program that I am on the Board of, Common Ground Canberrahas been provided $150,000 of funding in the 2011/12 ACT Budget todevelop a feasibility study.
 
Common Ground Canberra is working closely with other serviceproviders, government, and the community and business sectors todevelop permanent, safe and supportive housing for those who are mostvulnerable in our city and region. With a 50:50 split between homelessand low income workers, Common Ground will provide both amechanism to help end homelessness in the ACT and to drive housingaffordability by providing accommodation for those on low incomes. Thebuildings will have 24/7 concierge and a keycard security system, andwill be architecturally modern and integrated with their localenvironment.There is also a need for broader urban planning that reflects our changing demographics, and encourages a cultural shift to anacceptance of medium density housing, providing diversity and choice.Changes to economic policy should encourage investment in affordablehousing, while reducing tax distortions and increasing social andcommunity housing run by the not-for-profit sector.
 
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