Mr PETER DRAPER (Tamworth) [2.04 p.m.]: I have recently received correspondence from the Minister for Housing informing me about what is being described as a historic shift in social housing policy in New South Wales. The initiative will see up to 7,000 Commonwealth and State Government-funded social housing homes transfer from Government ownership to community housing organisations, with just over 100 properties in the Tamworth area affected. At the same time, the public housing stimulus package that has been rolled out locally is very welcome, and over the next two years we will see more local redevelopment than would have been possible in 10 to 15 years under the existing funding model.

It has been suggested that transferring properties from Housing NSW to community organisations will result in increased housing options for people on low incomes. Such an outcome would be very welcome, provided housing remains affordable for the most vulnerable in our society. Tamworth currently has approximately 800 public housing properties, 150 community housing properties and 125 Aboriginal Housing Office properties. Given the current availability of stock, people are presently on a waiting list of 18 months to two years to obtain a home in Tamworth. Of course, these waiting times are often greatly reduced for the most needy and, in fact, managing public housing is now only a small proportion of the assistance provided by Housing NSW. Many more people are now helped into private rental situations, for example by paying a bond plus two weeks rent in advance.

In Gunnedah, there are about 100 properties and the waiting time is about six months; however, all public housing in the town has recently been transferred to HomesNorth. Initially I received quite a few phone calls of concern, and while only time will tell, as long as people can get a properly maintained roof over their heads and the home remains affordable, it probably does not matter to the tenant how the system is administered. Efficiency and affordability are the key important factors, however a lot of other factors must be taken into account when determining future needs.

Tamworth is a regional hub and like many other localities around the State it is seeing a significant increase in homeless people. There are a number of contributing factors, including a lack of suitable accommodation, the fallout from the current global economic cycle, and health issues, in particular mental health issues. Amongst other emergency accommodation, Tamworth has a women's and children's refuge, a youth refuge, an Aboriginal hostel and a homeless men's support group. Every one of those is in high demand. The women's and children's refuge can accommodate five families and, sadly, it is fully occupied most of the time. Last week this organisation had to turn away 10 families, and they regularly turn away up to five each week due to a lack of resources.

Tamworth Youth Refuge reports it has kids stuck in the refuge or in transitional supported housing for extended periods of time, because no suitable long-term housing is available. They too regularly turn young people away because of insufficient accommodation. They currently have eight places, four male beds and four female beds, but, sadly, they often have to turn young women away due to the limitations. They report that these numbers are increasing. Tamworth Homeless Men's Support Group has 25 units, which are generally full, and it also looks after up to 20 other men in alternative accommodation. They too report increased demand and frustration at being unable to assist all of those in need. Finally, early each morning there is ample evidence in Peel Street and other areas of Tamworth, of an increasing number of people who are living rough on the streets.

There is no doubt that many homeless people have either a severe alcohol or drug problem, or a severe mental health problem. Very commonly they have both. This is the dilemma: it is futile to try to treat a mental health problem if the patient does not have a decent place to live. Similarly, it is very hard for that patient to sustain a tenancy if they have an ongoing mental health problem, or an alcohol or drug problem. There is a clear need for better, integrated responses in these situations.

My office recently took a phone inquiry from a gentleman who lives in public housing in Tamworth. He was concerned that during a recent conversation with the department he was advised that he "should get used to the idea of paying market rental rates, because there will be decreased funding from the Government". Community housing providers charge market rent, but if a tenant cannot afford this amount, based on their assessable income, they can apply for a rent rebate. This should ensure the tenant does not spend more than 25 per cent of their assessable income on rent.

Australians who experience homelessness do not aspire to be part of an underclass; they aspire to be part of mainstream society. They have modest goals, so no matter what changes take place in public housing provision it is critical to ensure that it remains available and affordable for the most vulnerable in our community.