Public housing plan upsets state relations

The NSW Premier Morris Iemma has warned the Prime Minister that he is not comfortable with proposed changes that would force state governments to compete with private developers for public housing funding. Mr Iemma said that the federal government has not consulted the state and territory governments and that the move undercuts the co-operative approach that had been established. The acting Minister for Housing in NSW Linda Burney said that the plan could place 327,000 NSW tenants in jeopardy.