Environmentally-friendly public housing will be built in Port Pirie in a project worth almost $5 million.

The Federal and State Governments could build 16 homes in the city under the Nation Building – Economic Stimulus Plan.

The houses will have a six-star energy rating with most having rainwater tanks and solar hot water systems.

They are designed to create sustainable and environmentally-friendly living. The dwellings will be built throughout the city at various locations.

Construction is likely to start early next year and three-quarters of the houses being built across the State must be finished by the end of 2010.

Independent Member for Frome Geoff Brock welcomed the extra housing and said it would be well received.

“It is well and truly overdue,” he said. “There is a strong need for far more housing.” He said the new houses would help

satisfy the increasing demand for public housing. “Unfortunately, there has been a lot of this style of home being disposed of by the State Government,” he said. “We should be increasing the numbers.”

He said the need was growing. “It is good to see a focus on two and three-bedroom housing in the allocation,” he said. “We want it to provide for families in need.”

State Housing Minister Jennifer Rankine said the development would help more families enter stable housing.

“This is the next stage in the stimulus plan that will see a boost in rental housing and more work in the construction industry,” she said. Federal Housing Minister Tanya Plibersek said the plan was aimed at

protecting jobs during the global economic downturn.

“This work is not just about jobs for builders and tradies, but also associated industries such as building manufacturers and suppliers who help keep the economy ticking over,” she said.

“There is also the important social benefit of providing more affordable housing to

people who need it the most.”