A shorter version of this article first appeared in The Australian, 16 January 2009

Aboriginal Housing: No Job, No House

Hon. Gary Johns

'Take me to places where there is no work and I will show you poor houses'. This simple proposition ought to be at the heart of Aboriginal housing policy. As Paul Toohey reported in the Weekend Australian Magazine (January 10-11) governments are choosing to consolidate Aboriginal towns in the Northern Territory (and elsewhere), building up some and letting others die. The consolidation involves the distribution of over $600 million for public housing. There is the hope that jobs will follow.

Of the 73 communities in the NT subject to the Emergency Response (which is a subset of all communities) only 15 will be transformed to towns and provided with better infrastructure and public housing. Private housing awaits the market and the market usually says if you have a job you can borrow for a house. The sub-prime disaster in the USA housing market is a reminder only an income stream begets a house.

The under-the-radar consolidation of Aboriginal settlement has been a long time coming. The persistence with outstations has been an expensive and damaging experiment commenced in the 1960s in part a response to revulsion at fringe dwellers who could not integrate into the modern economy. Now the economy and jobs are back on the political agenda and houses should follow. What is the link between housing and jobs?

In the study, No Job No House: An Economically Strategic Approach To Remote Aboriginal Housing, published by the Menzies Research Centre, it is argued that governments should cease building permanent housing for Aborigines in remote communities where they do not have a job in the real economy and where they are unable to, like other Australians, pay rent or a service a mortgage. Governments are coming to the same conclusion; the trick is in the transition. The consolidation is an interim solution to a much larger and long run issue. In time people must adjust to the circumstances and if a job does not come to their town they will have to move to the job. Sitting in places where there is no work ensures poverty.

An analysis of the 2006 Census suggests a number of trends with housing implications. Aborigines are leaving remote communities but many remain and are reluctant to leave to search for work. Employment projections suggest there is little prospect of employment growth in much of the land on which Aboriginal communities are located. A clue to surviving in remote Australia lies in the temporary nature of much non-Aboriginal accommodation, presumably because non-Aborigines stay only so long as their job lasts. Of course, those who have a base elsewhere can return to that base, for example to the city, but accommodation should not become a reason to not chase work.

In developing future policy for remote communities the Government will need to distinguish between: emergency accommodation such as hostels for men and shelters for women and children, where the need is proven; transitional accommodation like caravans and demountables for Aborigines visiting remote areas and more permanent accommodation such as private housing or housing commission style in permanent communities only where there is a reasonable prospect of a proper maintenance program and work.

In developing their policy the Government should distinguish four types of location:

• Outstations and homelands---with no permanent accommodation unless a case for economic viability is proven.
• Larger indigenous settlements---where land title changes are essential before there is any public and private investment. These settlements are not likely to be economically viable but regional stability dictates some public investment.
• Country towns---which will experience stress due to influx of Aboriginal settlers should be better provided with services, including 'refugee' resources and facilities.
• Major cities and regional centres---where any shortfalls should be handled by mainstream services, including 'refugee' resources and facilities.

Governments should explore the location and eligibility for each form of accommodation. Such exploration should be undertaken on the basis that Aborigines when informed of their options may consider them and make decisions about where to live. The aim should be to house people in a sustainable fashion. The only way to do this is to encourage people to pursue opportunities and be rewarded. Those who will not or cannot seize the opportunity should not be housed in the same manner as those who do.

Accommodation solutions will require a suite of other policies to reinforce the responsibilities attached to the housing market. These will range from welfare obligations, specifically income management as with the NT Intervention initiatives, land title changes, 'refugee' services to assist resettlement, and financial schemes such as 'sweat equity', 'financial literacy' and government special assistance to encourage home ownership.

Finally, infrastructure expenditure should be approached with caution and incorporate discussion about future viability of the communities. In this regard, structural adjustment will be essential as many communities face change in their livelihood and location. Structural adjustment requires that governments assist people to move and establish themselves where prospects are better, or if not, be made aware of the consequences of remaining.

Gary Johns is a former Minister in the Keating government. The paper, No Job No House: An Economically Strategic Approach to Remote Aboriginal Housing is released today by the Menzies Research Centre. Click here.