Wednesday, 5 February 2025

 Renee HEATH (Eastern Victoria) (18:46): (1381) I rise to speak of an issue that is deeply impacting the very core of my region, and that is our neighbourhood houses. Over the past few years they have faced disaster after disaster, whether it has been Black Summer bushfires or the restrictions from the COVID pandemic. Through it all they have been a lifeline for residents, helping them navigate relief payments and access to services and dealing with the overwhelming mountain of paperwork. But as reported by the ABC in January, these centres now face an impossible choice – cut services or close their doors.

Despite delivering much-needed support to their communities, these centres have been left to struggle with rising costs and insufficient funding. All of this can be placed at the feet of the Allan Labor government. Since the conclusion of the pandemic, operational costs, including training, waste collection, utilities and wages, have skyrocketed along with community demand. Morwell Neighbourhood House centre manager Tracie noted that these neighbourhood houses are facing not just financial strain but also an unsustainable funding model. The current neighbourhood house coordination program only covers the salary of one employee, leaving centres to spend their limited time and resources on fundraising within their community or navigating the complexities of government grants rather than focusing on service delivery. In some cases they have been forced to cut their services or consider closing down altogether.

Recent data showed that 45 per cent of all centres in this state are now operating at a loss due to these revenue and cost pressures. Just think about that – nearly half of these centres are in the red because of wasteful government that is caving in to union demands and raising pay for public servants and government ministers. Without government support, these centres are forced to borrow funds, which results in increased interest payments and a weakened balance sheet. The impact is not only financial – the closures and the reduction of services will result in job losses, diminished social cohesion, worsening mental health outcomes and erosion of trust in government. In short, the consequences are manifold and disastrous.

My adjournment for the Minister for Carers and Volunteers and the action that I seek is for the minister to conduct an immediate review on the current funding models for neighbourhood houses and urgently reallocate emergency funding to bridge the gap between the end of the disaster recovery grants and the allocation of new and ongoing funding. These centres are the heart of the community, and we cannot afford to let them collapse.