The Northern Territory has handed back responsibility for remote housing in more than half of its indigenous communities to the Commonwealth as bitter negotiations over funding break down.
Chief Minister Michael Gunner wrote to Prime Minister Scott Morrison on Monday telling him the leases for 44 of 73 NT Indigenous communities would be returned to the federal government immediately.
The move comes after a fortnight of Mr Gunner and Indigenous Affairs Minister Nigel Scullion publicly accusing each other of reneging on a $1.1 billion, five-year deal to jointly fund the housing program.
NT Labor accuses the federal coalition of failing to provide a cent since the then-Treasurer Mr Morrison signed a deal to provide $110 million a year for five years to match the NT's funds.
Senator Scullion has similarly accused the NT of not honouring the deal, spending well below its $110 million a year and that he was "demanding transparency and accountability" on indigenous employment and business outcomes before he paid his share.
Mr Gunner told the PM in his letter "it is disheartening that the Australian government is preferring to play politics on a matter crucial to the lives of Territorians rather than back a program that has successfully delivered more than 1300 either new or upgraded houses since September 2016".
Senator Scullion described Mr Gunner's decision as crazy and a refusal to deliver indigenous housing when any type of public housing was a constitutional responsibility of the Northern Territory government.
"The Commonwealth will carefully consider the ramifications of Gunner's outrageous decision to abandon his Aboriginal citizens without any consultation with Aboriginal Territorians," he said.
The leases of the 44 communities the NT is sending responsibility for to Canberra are ending on June 30.
The NT's $110 million a year commitment over 10 years will go to the remaining 29 other communities including the largest communities such as Wadeye and Maningrida.
The powerful indigenous group the Northern Land Council last week accused both Labor and the coalition of playing politics when services and infrastructure were needed on the ground.
"Once again Aboriginal issues and Aboriginal organisations are being used as a political football," Interim CEO Jack Ah Kit said.
The Northern, Central, Tiwi and Anindilyakwa land councils wrote to Mr Gunner last week saying they supported Senator Scullion's proposal to give them a formal and more active role in operating remote housing.
