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Newcastle Herald
Newcastle Herald
Gabriel Fowler

Budget falls short on Hunter's housing crisis, and transition

HOUSING is the Hunter''s top priority and the Labor NSW Government's first budget falls short of addressing the crisis in the community, says the Hunter Community Alliance.

With $9.5 billion forecast to land in its coffers over the next four years from booming property and transactions, Hunter communities expect to see some of that reinvested back into social housing infrastructure, Hunter alliance organiser and executive officer of the NSW Community Alliance David Barrow said.

John Engeler, CEO of Shelter NSW and also a member of Hunter Community Alliance, said the $224 million Essential Housing Package was a modest announcement.

"It will only just keep key homelessness programs running but doesn't address the huge increase in demand for services," Mr Engeler said

"Much of the $224 million, including $70 million for more housing, is locked up in funds that are difficult to access. By contrast the $998 million commitment to the first home buyer program (well-known to backfire) seems a large and disappointing choice of public spending.

'While the $300 million investment in Landcom to enable it to deliver more affordable housing in both metro and regional areas and investment in the Aboriginal Housing Office (AHO) is welcome; NSW has a shortage of 221,500 social and affordable housing and needs a solid stock of social housing (public and community housing) as a genuine alternative to the private rental market."

David Barrow, Hunter Community Alliance organiser and Executive Officer of the NSW Community Alliance.

Mr Barrow said on the revenue side, the modest increase in coal royalties was a pragmatic step, but the projected income paled in comparison to the Queensland government's $12 billion income from the windfall tax scheme it had in place in 2022-23.

"Too little, too late - but that isn't the fault of the new Treasurer," Mr Barrow said.

'As it has been for over a century, the Hunter is making a significant contribution to the states finances and if Treasury expects to see that contribution continues, NSW needs to fund the transition to renewables now'.

"However, we're concerned that Energy Security Corporation investment is being delayed to the second half of the decade".

"There's a lot the Energy Security Corporation could do to bring on clean energy and storage sooner so that taxpayers aren't forced to give handouts to Origin Energy's Eraring coal power station."

In the meantime, the government needed to clarify the role of community voices for the Hunter in government, Mr Barrow said.

"The promised Hunter Transition Authority doesn't get a mention in the budget and the Resources for Regions grant program was axed," he said.

"Neither the new statewide Regional Trust ($350 million) nor the $1 billion for the Energy Security Corporation are targeted towards the Hunter's transition.

"The good news is that the NSW Government can address these challenges over the coming nine months, with a view to clarity in the proactive mid-year review and transformation in its second-year budget in June 2024."

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