The Canberra Liberals claim the sale of public housing assets went towards funding the light rail, rather than much-needed public housing, but the ACT Government insists the opposition ‘mischaracterised and conflated’ the financing of the renewal program.

Mark Parton, Shadow Minister for Housing, claimed the 2019 Commonwealth Treasury Department’s review into the Asset Recycling Initiative shows the Commonwealth and ACT Governments agreed to a $447.6 million investment using sale proceeds to construct the tram, along with a $67.1 million incentive payment.

Additionally, Mr Parton said the Asset Recycling Initiative contract, signed by Chief Minister Andrew Barr, proved the Minister for Housing, Yvette Berry, has “misled the public”.

He said the contract stated the sale of public housing assets, along with the Commonwealth Government’s incentive payment of an additional 15 per cent on the sales, would go towards funding the light rail.

Mr Parton tabled the contract in Estimates Hearings on Friday 2 September. In response to his suggestion that the ACT Government had transferred money from the public housing project to light rail, Ms Berry stated: “That is not the case.”

However, Mr Parton said it was clear the profit and sale amount of public housing assets were used to fund the light rail project.

“Either Ms Berry has no idea how money is spent under her portfolio and no idea on what was happening in Cabinet Meetings she attended, or she has misled the public,” he said.

“Based on Ms Berry’s official statement being diametrically opposed to the publicly available facts, including those agreed to by Andrew Barr, Ms Berry has demonstrated her failure as an ACT Government Minister.

“Ms Berry can’t be trusted with the finances of the public housing portfolio, and can’t be trusted with the money of hard-working Canberrans.”

Funding was already published in the public domain

An ACT Government spokesperson told Canberra Daily Mr Parton failed to understand the funding for the Public Housing Renewal Program.

The spokesperson said Mr Parton had “mischaracterised and conflated the financing of the public housing renewal program repeatedly” and had not sought a briefing from the ACT Government to assist his understanding.

“The sale of the public housing assets, plus the 15 per cent provided through the Asset Recycling Initiative (ARI), was invested in Light Rail – Stage 1. As we have always public[ly] stated,” the spokesperson said.

“Separately, the Government then allocated funding to ensure that the total number of public houses in the Territory would not fall below 10,848 dwellings as per the agreement under the ARI.

“We set out to replace 1,288 properties. That is exactly what we did. We did it for less than we thought we would, and then invested more than those savings into a future program of renewal.”

The spokesperson said Mr Parton had claimed the government promised to spend $699 million on the Public Housing Renewal Program, rather than the $607.7 million forecast ($91.3 million less).

In fact, the government spent $520.1 million on the program, the spokesperson stated; the savings of $87.5 million formed the basis of the $100 million initial investment in its successor, the Growth and Renewal Program, announced in 2018. That program was expanded to $209.7 million, plus $137.3 million for maintenance and repairs.

Mr Parton, the spokesperson continued, had also claimed that the government only invested $81 million in the Public Housing Renewal Program – an error based on the Housing ACT budget statements and annual reports.

These did not show large capital injections, the spokesperson explained, because the Chief Minister, Treasury and Economic Development Directorate (until 2016-17) and the Environment, Planning and Sustainable Development Directorate (from 2017–18) received the appropriation to construct or procure new public housing dwellings, which they then transferred to Housing ACT through designated equity transfer. (For more information, see the Public Renewal Housing Taskforce website and the Auditor-General’s report on the program.)

Ms Berry told Canberra Daily the claims were an “example of shock jock media spin from the Canberra Liberals”.

“Are they suggesting that the houses built don’t exist?” she asked.

“Don’t forget that the Canberra Liberals opposed and protested against the building of public housing from this program.

“The Canberra Liberals fought against the building of the very houses they are now suggesting were never built.”

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