Only 2 per cent of a $319 million post-COVID social housing initiative had been spent by March, according to a report by the Auditor General released today.
The Office of the Auditor General assessed a sample of $2.1 billion of initiatives between June 2020 and March 2021 through the state government’s post-COVID stimulus and financial assistance programs.
Looking at 30 programs through 19 departments, the report said only about 61 per cent was spent in the assessed period.
About $800 million was unspent as at the end of March, the report said.
“Of particular concern are the Department of Communities’ social housing initiatives, which as of 31 March 2021, only $6.42 million (2 per cent) of the $319 million budget was spent,” the report said.
“Although planned to be rolled-out over 2 years, these initiatives are now competing for resources in a building and construction boom in WA that’s been driven by other pandemic-induced stimulus measures (including federal and state building grants) aimed at the private housing sector.
“It is relevant to also recognise that the economy is now larger than it was pre-COVID-19.”
The report’s key recommendation was that state government entities should consider predictable events when planning future stimulus, such as market limitations around contractor and builder availability.
“It’s also important they improve their planning and coordination when initiatives are competing with one another, as is the case with social housing, to ensure all initiatives reach the relevant beneficiaries,” the report said.
Business News understands the social housing program roll out has gained momentum since the report’s March cut off.
Shadow Treasurer Steve Thomas said housing spending had been a tiny trickle in the middle of a housing crisis.
“It is damning that only $6.4 million of the entire $319 million social housing package trumpeted by the government was expended in a timely manner” Mr Thomas said.
“That is a paltry 2 per cent success rate at getting the funding to where it was needed on time in the middle of a recognised housing crisis.”
He said the government’s initial media release in June 2020 had suggested maintenance of 3,800 regional houses was scheduled for an immediate start.
A spokesperson for the state government said it was never expected all the funding would be allocated by March, and was intended to support recovery over coming years.
“At the time these stimulus measures were introduced, Western Australia was potentially facing one of its worst financial disasters,” the spokesperson said.
The economy had performed significantly better than first expected and was one of the world’s strongest, the spokesperson said.
At September 30, there had been $18 million of contracts awarded for new home construction, and $30 million for refurbishment of 398 homes.
Maintenance contracts worth $20.5 million had been awarded for work on more than 4,000 houses, and a $93 million grants program is open for the community housing sector.
“Stimulus measures from the state and Commonwealth have resulted in a boom in residential construction activity, with around 27,000 homes approved for construction last financial year,” the spokesperson said.
“This has supported thousands of additional jobs and is expected to increase housing supply over the coming months.
“The government has also provided residential rent relief and increased availability of Keystart loans to support lower income households.”
