Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Families, Housing, Community Services and Indigenous Affairs, Senator Arbib. I refer the minister to the government’s commitment under the Northern Territory Aboriginal housing program, SIHIP, to renovate 2,500 houses and rebuild a further 230. Evidence given at Senate estimates describes a renovation as a new bathroom and kitchen, or a ‘functional renovation’. Given that the government has promised full renovations to be completed at an average of $75,000, when did the definition of a renovation become a ‘functional renovation’ and just include bathrooms and kitchens?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

I thank Senator Scullion for the question. The Strategic Indigenous Housing and Infrastructure Program is delivering significant improvements in housing for Indigenous communities right across the Northern Territory. The program is on track to meet its target of 750 new homes, 230 rebuilds and 2,500 refurbishments in remote communities by 2013. New housing targets were exceeded in the last financial year. To date, SIHIP has delivered 82 new homes and 645 rebuilds and refurbishments, improving the quality of life for hundreds of Indigenous families in more than 30 communities and town camps. The government, of course, is committed to continually improving the delivery of SIHIP.

In terms of functional refurbishments which Senator Scullion has raised, functional refurbishments target the elements of a house that will have the greatest impact on tenants’ wellbeing: fixing safety faults and ensuring bathrooms, kitchens and laundries are functional. Refurbishments range in cost from $20,000 to $100,000 per house, at an average cost of $75,000 across the program. This includes labour, materials and all other associated costs. These funding parameters are not new. They were set by the SIHIP review in August 2009. This is an unprecedented spend, but funds are, of course, finite and they will be targeted to improving housing for tenants’ wellbeing. SIHIP is on target to build 750 new homes and make the refurbishments that the government committed to, as well as the 230 rebuilds.

As Senator Scullion knows, because it was raised during Senate estimates, there has been a great improvement in the level of Indigenous employment taking place through SIHIP. The target was 20 per cent Indigenous employment. SIHIP is delivering—(Time expired)

Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Senate estimates also revealed that in order to allow limited funding to stretch as far as possible, a functional refurbishment would be the focus. Can the minister confirm whether it costs $75,000 for a kitchen/bathroom makeover, or is the government stretching the money further by upgrading even more houses in excess of the promised 2,500 houses?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

As I said, the refurbishment cost range is from $20,000 to $100,000 per house, at an average cost of $75,000 across the program. Again, this includes labour, materials and all other associated costs. These funding parameters are not new. These are the funding parameters that were set by the SIHIP review in August 2009. As I was saying, the program is delivering houses for Indigenous communities and it is improving the welfare of those communities and those people while at the same time delivering jobs. One of the things that we have talked about time and time again is: the only way to bridge the gap on Indigenous inequality is through employment. The target was 20 per cent. At the moment the government is delivering 30 per cent through the Territory housing strategy. That is good news for those Indigenous people who have jobs, it is good news for the contractors, and it is good news for those families who have a breadwinner coming home—(Time expired)

Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. As the minister knows from the answers given in Senate estimates, there was the unit cost of $75,000 for a kitchen/bathroom makeover. If the government is cost cutting on renovations and not increasing the number of houses that are being renovated, where has all the money gone?

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

I totally reject that. I have gone through the parameters of the program and the costs. We are delivering on our targets. I say to Senator Scullion, through you, Mr President: there could be a bit of praise for the work that Minister Macklin has done. It was only about eight months ago that Senator Scullion was standing up here and criticising the federal government and the Northern Territory government for the work. Minister Macklin intervened in the process, the department intervened, and we are now back on track delivering the houses that were committed, and we are back on track delivering the refurbishments that were committed. That is good news for the Northern Territory, for Indigenous communities and for Indigenous workers.

Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. I know he still has 18 seconds to answer—

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Fourteen.

Nigel Scullion (NT, Country Liberal Party, Deputy Leader of the Nationals) Share this | Link to this | Hansard source

Fourteen seconds left to answer. Given the acknowledgment that the renovations are now only functional renovations, and given the acknowledgement that the minister has said that we are not building any further houses, the question simply went to: where has the money gone? I wonder if you could draw him to the question.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order. The minister is answering the question. The minister has 14 seconds remaining to answer the question.

Mark Arbib (NSW, Australian Labor Party, Minister for Social Housing and Homelessness) Share this | Link to this | Hansard source

There are two things I thought I would raise in response to that. The first is that, on 25 October, the Northern Land Council issued a media release about SIHIP taking out the NLC employer award, which is fantastic—(Time expired)