Government wastes millions on Aboriginal home ownership program

A Federal Government program which seeks to increase home ownership on Indigenous community titled land was recently assessed by the Australian National Audit Office.

It is nothing short of outrageous that after four years, and against a target of delivering 460 loans across eight communities, the Home Ownership on Indigenous Land (HOIL) program was only able to provide $2.7 million for a mere 15 loans, while administrative costs totalled nearly $10 million.

That means on average each loan cost more than $666,000 to administer, but only $166,666 was actually provided to prospective home owners.

It is symptomatic of a Government that is focused on appearing to do something to address Indigenous disadvantage rather than actually delivering outcomes. It is also symptomatic of a Government that has no regard for the value of the taxpayer dollar, bumbling from one budget blow out to the next.

HOIL, like the Intervention, was initiated by the Howard Government in a genuine attempt to provide better living conditions for Aboriginal people. But the impetus that started these programs has gradually drained away under this Government because it does not have the pace and passion required to deliver change.

Kevin Rudd and Julia Gillard have talked extensively about closing the gap but taken no practical action to address barriers to improving conditions, for example by resolving land tenure issues which would allow Aboriginals to own their homes. Furthermore, waste and maladministration means millions of dollars are being spent building new houses which are not up to standard and will therefore not be able to return sufficient rent to maintain them in the future. And why should Aboriginal people live in sub-standard public housing because the Government can’t manage a budget?

It is distressing that the many failings of the current Government in addressing Indigenous disadvantage fly under the radar of most Australians while taxpayer funds designed to improve conditions are being frittered away. Clearly the Tiwi Land Council played a pivotal role in getting at least some benefit from HOIL. I commend the Tiwi Islanders who took up a loan and encourage others to follow their lead.

I will be using Question Time and Senate Estimates when Parliament returns to get answers from the Government about why so much money has been wasted on HOIL and other programs, with so little benefit to Aboriginal people.