Independent Franklin MP David O’Byrne has accused the state government of “raiding” the Homes Tasmania budget to purchase a building leased by the Health Department.
The Fountainside building, located next to the Royal Hobart Hospital, was recently acquired by Homes Tasmania from the University of Tasmania.
O’Byrne questioned why the state housing provider was involved in the purchase and not the Health Department, suggesting it should instead focus on providing affordable housing for low-income earners and those at risk of homelessness.
“In your government’s own words, the purpose of Homes Tasmania is to fund affordable housing for people on low incomes and people at risk of homelessness,” he said in parliament on Wednesday.
“Not only has Homes Tasmania gone outside its remit to purchase a building that has nothing to do with social housing, the irony of Homes Tasmania outbidding Colony 47 in the process is not lost on people.”
Colony 47, a provider helping young people experiencing homelessness, said the building would have helped solve the regional youth housing crisis.
“Why is this now the responsibility of Homes Tasmania when almost 5,000 people are languishing on the priority waiting list?” O’Byrne asked.
Housing Minister Felix Ellis said the purchase was “a good thing” and provides convenient living arrangements for health workers.
“It doesn’t raid the budget for Homes Tasmania. They’re totally separate parts of our business,” he said.
“This is an arrangement that we have with the Health Department and we’re looking to make further opportunities available in that space.”
