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I believe that this approach is much more in line with the proper roles and responsibilities of the two jurisdictions and will give the ACT a clear opportunity to determine the way in which it will best meet the needs that arise within this Territory rather than be tied to some general prescriptive actions that do not produce the best outcome for the ACT.

The Housing Ministers have agreed that work should be undertaken to determine a uniform methodology for assessing housing need and to develop a funding model which provides flexibility for the States and Territories to deliver their housing services. The Ministers further agreed that all governments should have a role in determining national strategies for housing assistance arrangements and the overall level of resourcing; in each State or Territory the Commonwealth and State or Territory would reach a bilateral agreement on the application of the national strategies, including target outcomes to be achieved within that State or Territory; thirdly, the Commonwealth is to bear the responsibility for income support and housing affordability; fourthly, within the bilateral agreements States and Territories would be responsible for planning, managing and delivering housing services; and, finally, each State or Territory would be responsible for developing a three-year plan for housing assistance with a streamlined reporting.

One of the important issues yet to be resolved between the Commonwealth, States and Territories is the funding arrangements associated with the new agreement. Currently the ACT receives some $22m from the Commonwealth. This is based on per capita funding with a minimum amount payable. Some of the proposals for assessing need and allocating funds under consideration in the context of the new agreement, if accepted, could see a substantial reduction in the funds paid to the ACT. Both the Chief Minister, in the context of the Council of Australian Governments, and I, in the Housing Ministers conference meetings, have indicated that we do not regard a move from the per capita funding arrangements as acceptable. Some of the other States support the ACT in this approach, and I will continue to work to ensure that the ACT is not disadvantaged in the new agreement.

The work in which I have been involved in the Housing Ministers meetings has been directed to the Commonwealth-State Housing Agreement, which is public housing; but my responsibilities as Minister for Housing in the ACT embrace all housing issues as they affect residents of the Territory. The housing industry is a major contributor to the health of the ACT economy, and it is important that our Government provide to the industry a clear statement of its objectives and establish a path for the future.

I believe that it is important for the ACT economy to maintain a stable housing industry based on private enterprise, to balance the provision of new housing areas, improvements to existing homes and the redevelopment or upgrading of existing housing areas. Our Government therefore believes that the development and adoption of a clear strategy for housing in the ACT is a priority in order that industry will be able to understand the opportunities that exist both now and in the future. It is important that the housing industry is able to build on the sound base which our Government will provide through proper economic management of the Territory.

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