The Federal Government has finally admitted that not one new house will be built out of the $36.5 million allocated under the Strategic Indigenous Housing Infrastructure Program (SIHIP) to improve living conditions for local Aboriginal residents.

Last October Federal Indigenous Affairs Minister, Jenny Macklin, announced a $6.5 million funding package to be spent building new houses in Tennant Creek.

The money, granted specifically to tackle serious overcrowding in the community, was additional to the $30 million town camp lease deal struck that same week between the Federal Government and Julalikari Council.

This week Ms Macklin told ABC Radio said she had reneged on the commitment to build new houses following extensive consultation with the community and Julalikari.

She said the money would be used to refurbish 78 houses in Tennant Creek by 2013.

Former Member for Barkly, Elliot McAdam, says he’s incensed about the way the money is being used.

“This is a big shame job and I’m really angry about it,” he said.

“I can’t believe Julalikari and the Federal and Territory Governments are allowing this to happen.”

As then-NT Housing Minister, Mr McAdam said the $30 million town camp lease deal announced late last year was negotiated to include $14 million on civil works, $9 million on new housing and $7 million on upgrades.

“Given the extra $6.5 million, we should have had over $15 million worth of new houses in Tennant Creek,” he said.

“And the deal was that no management fees would be taken out of the money allocated to Tennant Creek but I think you’ll find at least $8 million has been ripped out of the budget for administration fees.

“We’ve got people here living in deplorable and chronically overcrowded conditions so to renege on the deal is nothing short of criminal neglect.”

Julalikari Council General Manager, Pat Brahim, said her organisation signed a memorandum of understanding with the Territory and Federal Governments to upgrade infrastructure and to upgrade current houses to Territory Housing standards.

“The initial discussions and wish list was to do this as well as to build new houses but the $30 million did not allow for new houses so we made the decision not to build new houses in this round.”

Member for Barkly, Gerry McCarthy acknowledged more public houses are required in Tennant Creek but said he accepted and supported Julalikari’s advice to limit works to refurbishments and civil works.