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Poverty inquiry told housing crisis and lack of support 'very distressing' as demand outstrips supply

A Senate inquiry is hosting hearings around to Australia to examine the issue of poverty. (ABC North Coast: Emma Rennie)

A Senate inquiry has heard that while poverty has become "an industry" in Australia, frontline workers are still having to scrounge up donations to help those forced into homelessness.

The cross-party federal inquiry held a hearing in Lismore on Tuesday, nearly a year after record flooding in northern NSW left thousands in the area homeless.

Nimbin neighbourhood centre manager Natalie Meyer told the hearing the majority of the people who walked through her doors were experiencing poverty.

But she said there was only so much her team could do with a limited budget.

"We have to scrounge up donations to give people things like tents [and] sleeping bags," she said.

"It's pretty dire."

She said it was distressing for people working on the ground.

"We're working with these people day-in, day-out and there's not a lot we can do to help them," she said.

Natalie Meyer was at the Lismore hearings of the Senate inquiry. (ABC North Coast: Emma Rennie)

The inquiry, chaired by Greens senator Janet Rice, heard thousands of people who used to own or rent their homes before the flood crisis had since been left homeless or with inadequate housing.

That included more than 550 people staying in seven temporary pod villages set up in the wake of the floods and managed by North Coast Community Housing (NCCH).

NCCH chief executive Craig Brennan said demand for housing far outstripped supply, with many of those people couch surfing or sleeping in tents or cars.

"You can drive from here [in Lismore] up the highway to the Tweed and at any of those rest stops along the way, you'll see 20 or 30 cars each night [with people sleeping in them]," he said.

The inquiry heard that rents had also drastically increased in the region, and rising interest rates were putting pressure on homeowners.

The 'industry' of poverty

Roy Starkey, a retired care coordinator who sits on the ministerial advisory council for ageing, gave evidence in a private capacity.

He told the inquiry "poverty has become an industry", pointing to the government funding given to job agencies.

Mr Starkey said they were a type of "band-aid solution" which did not address structural disadvantage.

He called for more investment in housing and, crucially, wrap around services which allowed disadvantaged people to access transport, better nutrition, medical treatment, mental health support and education.

Roy Starkey says healthcare, housing and support are all key to tackling poverty. (ABC North Coast: Emma Rennie)

Similarly, Ms Meyer pushed for systemic change to housing policy and regulation.

"Other people shouldn't be allowed to profit at the expense of people not being able to have a roof over their head," she said.

"At what cost are we allowing this to go on?"

Push for higher welfare

Low rates of income support was repeatedly raised as an issue throughout the hearing.

Nimbin resident Chibo Mertineit told the inquiry he had "never felt so mentally tortured" as when he was unemployed.

"We are making people sick, in my opinion, by having people live on such a small amount of money [as the Centrelink JobSeeker payments]," he said.

Chibo Mertineit spoke about the personal strain he felt when he experienced unemployment. (ABC North Coast: Emma Rennie)

The inquiry panel asked several witnesses if they thought increasing welfare payments would help alleviate poverty.

Most said yes.

Ms Meyer said her centre "was the quietest we've ever been" when additional income support was provided through JobSeeker and JobKeeper payments during the COVID outbreak.

"For once they could afford to pay their rent, they didn't have to scrounge up just to put food on their table," she said.

After the hearing, Ms Rice said she expected the inquiry would make recommendations to increase welfare payments and housing support.

"You can't get your life together and be in a position to actually find work unless you've got a decent amount of income coming in to put food on the table, pay rent and pay bills," she said.

The inquiry is expected to hand down an interim report in April, before the final report is presented in October.

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