Don’t Swallow the Kool-Aid on a Council Fix for Housing. 

By Rod Mitchell

Over the last few years, our councillors declared a climate emergency and soon after an economic emergency. Now there is talk of a housing emergency. It’s as if the Port Philip residents are fed a rolling list of “crises” as a means of galvanising sections of the voting public and displaying the councillor’s passion, sincerity and of course, readiness for higher office at the state or federal level. It does not matter that these glib two-word catch all’s don’t materialise into anything substantive at council level. It is about identification and herding the voting blocs, more than anything visible on the ground. 

In the current council elections, many candidates are spruiking the “Housing Emergency” and their intended focus on this major issue if they win office. While housing is a serious issue, this would have to be the most disingenuous campaign pledge sprouted by the candidate hopefuls in the City of Port Phillip elections.

This same stunt has been used by Federal and State governments - remember the recent state government pledge of 800,000 houses over the decade or 80,000 per year. Reality Check - housing starts are now at a record low and nowhere near the 80,000 per annum level as pledged by the State Government.

Several factors are at work which are making housing unaffordable and contracting supply. 

  • The “Big Build” programme instigated by the State Government not only has caused a shortage in skilled labour but has also put pressure on labour costs and materials; 
  • Over regulation and red tape; 
  • The State Government through tenancy protection legislation, additional legislated landlord requirements and land tax has effectively created a capital strike. An ineffective time delayed VCAT process adds to the current woes. Simply put, the government has made it unattractive for the private sector to invest in housing; and
  • The Federal government through an over ambitious immigration programme of an additional 500,000 plus immigrants per year, has caused additional strain on the housing market.

Importantly to point out is that building regulations are a Federal and State responsibility, so any argument about changes to regulations in housing by budding councillors can also be ruled out.

Enter Housing Politics at the Local level.

In any discussion on housing in the City of Port Phillip, the following should be front and centre or made at least clear:

  • Council’s do not have a mandated role to provide housing. That is the responsibility of Federal and State governments.
  • Rate collections for the CoPP like all councils, are capped at a maximum 2.75% mandated by the State Government. Barely keeping in line with inflation with little room for additional programs. 
  • Any increase in expenditure on housing initiatives by the CoPP will mean something else within the council budget will need to be cut or removed.
  • If you have been listening to council meetings over 2024, the “housing advocates” in chambers are like a scratched record, emphasising continually that there is no possibility of cuts elsewhere within the budget. So, with limited opportunity for substantive rate increases due to the rate cap and no current expenditure reductions, where is the money coming from to meet this housing emergency?  
  • And are additional rate increases what the citizenry wants, when the real “emergency” for the average punter is a cost-of-living crisis?

One councillor in 2024 advocated an additional $1 million a year and increasing each year by an additional $1 million to be spent on social housing. Ask yourself how far that would go in any new build or purchase of existing houses?

If the additional monies were spent on rental subsidies, the immediate economic affect would be to force rents even higher as more entrants enter the market. Simply put, there is no money or role for any meaningful council intervention in the housing market.

What can Council Meaningfully do in the Housing Space?

Council has a planning division which has demonstrated to be cumbersome, over bureaucratic and unable to deliver on required turnaround times. This is something that the CoPP can improve on, and that’s where councillors should be demanding action.

Percentage of planning applications decided in required timeframes

            2019/2020      2020/2021      2021/2022      2022/2023      2023/2024

72%         45%                  57 %              60%                N/A

Further, the time taken to decide planning applications, is over 100 days!

If the CoPP and its councillors are serious about improving the supply of housing, speeding up the planning application process would be a good place to start! 

As you look to place your vote over the next week and you hear the cries from those standing for election that they will put the housing emergency front and centre, know very well that while the intentions maybe well placed, their ability to do anything meaningful is next to zero. In fact, any sensible voter who understood the economics of housing and where housing responsibility lies, would see it for what it is – Virtue Signalling!

Let’s all hope that the next declared emergency(s) at council, is a “roads, rates and rubbish emergency” or a “graffiti emergency” or a “community safety emergency”. The sooner council gets back into its lane the better. It starts with us. Vote for councillors who want to deal with the basic council remit first.