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Legislative Assembly for the ACT: 1997 Week 12 Hansard (13 November) . . Page.. 4229 ..

APPENDIX 1: Incorporated in Hansard on 13 November 1997 at page 4218

Response for the Minister for Housing, Bill Stefaniak to questions asked by Ms Marion Reilly.

1. Ms Reilly has quoted that at 30 June 1997, the debt owed to ACT Housing by public tenants was $1.418 million and at 30 June 1996, this debt amount was $2.58 million. The first figure is correct, however the second figure for 30 June 1996 is $2.058 million. These are shown on the annual financial statements for ACT Housing.

However, Ms Reilly needs to understand that these debt figures relate to debt owed by current tenants and not those who have vacated public rental properties still owing moneys to ACT Housing.

2. Ms Reilly is correct in pointing out that over the 12 month period to 30 June 1997 that ACT Housing together with public tenants had reduced the level of debt. This reduction is $640.00. Notable reductions have occurred in Woden, City and Tuggerawong regional offices.

This is an excellent achievement and both ACT Housing and public tenants should be congratulated. I must add that this performance is also attributed to the good debt management policy this Government has required of ACT Housing.

3. The further figure that Ms Reilly has referred to - $1.388 million for debts written off over 1995-96 and 1996-97 years - relates to debt that could not be recovered or were uneconomic to recover from former tenants.

4. Under the current policy for debt write-off, vacated rent debts more than 12 months old where there is no continuing recovery action and those under $200 are written off. This is an accounting treatment only and occurs as at 30 June each year. Where former tenants are later located or seek to be re-housed, recovery action is recommenced and the debt is written back to the financial accounts.

5 Ms Reilly is not correct in assuming that the debts written off have contributed to the improved level of debt on current tenant account. There is no write off against current tenant debt and all the reduction of $640.000 in the 1996-97 year is attributed to the debt management policy and the efforts of ACT Housing staff and current public tenants.

6. All vacated debt is referred to Wards Collection Services. Where this agency is able to locate a former tenant, including where debt has bee written off in accordance with the accounting policies, recovery action will be pursued.

7. It should be noted that the former Minister for Housing, Mr Lamont, advised that for the financial year ended 30 June 1994 (during the term of the previous Labour Government) total rental write offs amounted to $2,330,269.

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