Funding delay headache for hostel

A last-minute reprieve from the Department of the Prime Minister and Cabinet has prevented the only Aboriginal hostel in South Hedland from closing its doors, and making 25 individuals homeless.

Early last month, Bloodwood Tree Association management advised the 21 adult residents and four children living at Bunara Maya Hostel of the need to organise alternative accommodation after March 13.

The association was forced to put closure plans in place because it had not received temporary funding offered by the Department of the Prime Minister and Cabinet after a delay in the allocation of Indigenous Advancement Strategy funding.

On Thursday, almost six weeks after the organisation submitted its application on January 16, management was notified Minister for Indigenous Affairs Nigel Scullion had approved $104,558 of funding for the period from January 1 to June 30.

Bloodwood Tree chief executive Bob Neville said the delay had brought the organisation to its knees.

"In the past, it's been bad with some Government agencies ... but it's never been this bad, where we have run out of money," he said.

"It's the worst I have ever seen it and it's made so bad because you can't talk to anybody… it's so bad, nobody will put their name to it."

At a Senate Finance and Public Administration Legislation Committee public hearing on Friday, representatives for the department said Bloodwood Tree's application was part of a cluster from organisations previously funded through Aboriginal Hostels Limited.

A spokesman said it took time to work through the applications, and a number of AHL-linked organisations were also advised of temporary funding outcomes on Thursday.

"Once the application is in … it would need to go through the process so we wouldn't normally have extensive contact with an applicant during that process," he said.

During questioning, Mr Scullion said he did not specifically know Bunara Maya was going to close, only that it was one of a "broad sweep" of properties previously funded under AHL.

He said he would be having discussions with the AHL board about its decision to discontinue a number of funding programs with the expectation the Commonwealth "would pick up the bill".

Mr Scullion is expected to announce the outcome of long-term IAS funding, including for Bunara Maya, early this month.