Shock at DHA’s statements and profits

I WAS reading the DHA Budgeted Financial Statements on the DRN today and was astounded.

In the preamble I stumbled across this statement: “Dissatisfaction with Defence housing is no longer a retention issue.”

I think the author of this document needs to revisit this subject. I will agree that it has reduced importance as a retention issue, but to say it is no longer an issue is a straight lie.

Housing has improved, but this does not change the fact that improvement is still required in both service and standard of housing.

I hear regularly from people that they are having problems with DHA that are causing great family stress. Causing stress on families affects decisions that are made when it comes to re-engagement time.

Added to this is the line I hear from DHA every now and then: “You have nothing to complain about, things are so much better than 20 years ago.”

On top of this insult I find that DHA had an operating profit of $75 million this financial year.

This is expected to drop next year to a mere $64 million.

I was under the impression that DHA was a non-profit organisation, therefore this kind of operating profit left me flabbergasted. With profits of this size the GRS rise we will experience this year will leave a bitter taste in my mouth.

Can someone from DHA please explain these issues?

FLGOFF Andrew Koop
OIC GES
44WG DET AMB

Offical Response
DHA is fully aware that there is a direct link between the quality of housing, the services it provides and the retention of service personnel.

We are also aware that there is always room for improvement. DHA is addressing this with a three-year program which will outlay more than $1 billion on the replacement and improvement of houses for ADF members.

In relation to DHA’s financial obligations, it is important to note that DHA is a government business enterprise and legislation requires DHA to meet Defence requirements while operating in a commercial manner.

With regard to DHA’s profit, the rate of return on the Commonwealth’s investment, flowing from any operating profit, is a modest 5.5 per cent.

DHA is maintained in government ownership to ensure that we deliver quality service while pricing to Defence is kept at the lowest levels consistent with a reasonable return on funds.

In 2002-03 the rental increase passed on to Defence was only 1.86 per cent for Group Rent Scheme (GRS) purposes. Contributions under the GRS are determined by Defence and reflect Defence policy to move towards recovering 50 per cent of the housing subsidy.

DHA is always willing to listen to any ADF member about ways in which we can improve our services and encourage them to pursue any issues with their local Housing Management Centre.

Ken Thornton
Communication Manager, DHA

Have your say

The letters page is an ideal forum for readers to express their views on issues relating to the Air Force or to provide feedback on items that have appeared in Air Force News.

• Keep letters to 250 words.
  
• Include your name, unit (where applicable), location and contact details.
  
• Send letters to: The Editor, Air Force News, R8-LG-042, Russell Offices, Canberra, ACT, 2600; or raafnews@ defencenews.gov.au (note: this is not part of the Defence Restricted Network, so include “Sec: Unclassified” in the subject field when sending from a DRN computer terminal)
  
  Letters will be edited for spelling and grammar, and might be edited for space.
  Where appropriate, responses will be sought through official channels to enable queries to be answered.

.