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The Guardian - AU
The Guardian - AU
National
Paul Karp

Labor’s $10bn social housing bill in limbo as negotiations with Greens deadlocked

Max Chandler-Mather speaking into a microphone in front of CFMEU flags in front of Parliament House
Greens senator Max Chandler-Mather addresses a rally organised by the CFMEU to highlight the lack of affordable housing in front of Parliament House on Tuesday. Photograph: Mike Bowers/The Guardian

The Albanese government’s signature housing bill will not pass this week, after the Greens revealed no significant concessions have been made in negotiations.

But despite toughening rhetoric on Labor’s proposed $10bn housing future fund, the Greens housing spokesperson, Max Chandler-Mather, signalled that the party could soften their demand for $5bn of direct spending a year, describing it as an “initial offer”.

While the government piled pressure on the Greens to help it pass the housing Australia future fund in question time, the minor party drew support at a housing rally outside Parliament House in Canberra on Tuesday. Independent senator David Pocock and the CFMEU, an affiliate of Labor both agree the government should raise its ambition.

The Greens agreed to hours of sitting that will see Labor’s reconstruction fund bill pass the Senate on Tuesday, with the safeguard mechanism to be voted on by noon on Thursday.

Despite deals on both pieces of legislation, Labor still lacks support for the housing Australia future fund bill. The Greens object to that bill because it limits the amount of spending on social and affordable housing to $500m a year out of the earnings of the $10bn fund.

The housing bill will not be debated this week, meaning it cannot be voted on until budget week commencing 9 May.

The prime minister, Anthony Albanese, told Labor’s caucus on Tuesday that the government had a mandate for all three policies taken to the election, but had been forced to rely on the crossbench because of the “pathological obsession with opposing everything of the ‘Noalition’”.

Chandler-Mather told reporters in Canberra the $10bn fund was a “sick joke” that effectively “gambled” the money in the future fund, which lost $120m last year.

“The Greens have been clear – what we want to see is a national two-year freeze on rent increases … we want at least $5bn in public, affordable and community housing and at least $1bn for First Nations housing.”

Chandler-Mather revealed that “so far there has been no offer of direct investment in public and affordable housing” but he noted that it “has not yet been ruled out”.

Asked if the $5bn a year direct investment is a must-have for the Greens, Chandler-Mather conceded “no, no, we have said we are willing to negotiate in good faith.

“That’s our initial offer but we want to negotiate – it’s not good enough for us to put that on the table and the government say ‘our counter offer is zero extra dollars’, that’s not how a negotiation works.”

Pocock told the housing rally “the country is feeling the cost of living and housing crisis and we need a better policy response”.

David Pocock speaking into a microphone in front of CFMEU flags in front of Parliament House
Independent senator David Pocock addressing the rally outside Parliament House on Tuesday. Photograph: Mick Tsikas/AAP

Last week, Pocock issued a dissenting report in a Senate inquiry calling for the $10bn fund to be doubled to $20bn and the $500m limit on disbursements to be scrapped.

The CFMEU’s incoming national secretary, Zach Smith, said the government had to be prepared to “tackle this problem seriously – not throw a bucket of water on a bushfire”.

The president of the Australian Council of Trade Unions, Michele O’Neil, told the National Press Club the housing future fund was a “really important commitment” that should pass.

“There’s a heap more work to be done and more money to be spent – but that’s not a reason to hold up getting urgent action on this today,” O’Neil said.

On Monday Albanese told reporters in Canberra that Labor is “happy to have” an argument with the Greens about blocking the $10bn fund “between now and the next election”.

“I think some of the rhetoric that I have seen is rather strange really. I support increased investment in social and affordable housing and I call upon the parliament to do the same thing.”

Chandler-Mather said it was “morally repugnant” of Labor to refuse to negotiate and threaten to campaign on the issue into the next election.

In question time on Tuesday, Albanese listed stakeholders who support the bill including the Property Council, the Community Housing Industry Association and the National Aboriginal and Torres Strait Islander Housing Association.

The housing minister, Julie Collins, quoted National Shelter arguing that “we need government investment … and time is of the essence”.

“This is a national crisis and action cannot be deferred. Here is a peak body of providers saying that this is urgent.”

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