Member for Northern Tablelands Richard Torbay has welcomed a $1.6 million no interest loan from the state government to help Guyra Council develop a new estate for around 50 houses to relieve the town’s housing shortage.

Council expects to start work immediately to develop the almost six hectare site on Manse Street in east Guyra.

The loan from the government’s Local Infrastructure Fund will cover the undergrounding of power, water and telephone amenities, roads and kerb and guttering in the new estate.

“Since the start up of the tomato farm in 2005 Guyra has grown at an enormous pace,” Mr Torbay said.

“The 20 hectares of greenhouses has created 250 new jobs and put pressure on existing housing, with many people wanting to settle there.

“I have worked with the Council to obtain this loan to open up the new housing estate to relieve the demand pressure and also to provide more housing options for residents. It’s a great result for a very vibrant and growing centre in our region.”

Mayor Hans Heitbrink described the loan as “a godsend” as Council would otherwise have had to borrow heavily and eat into its reserves to fund the project. “We are elated, jubilant and over the moon,” he said. “We especially want to thank Richard for giving us such strong support in steering our application for this loan through the government.”

Cr Heitbrink said the new estate on council land would be developed by council into around 50 quarter acre blocks and was expected to attract medium price housing.

“There is a high need for this type of housing in Guyra and we are anticipating selling from five to 10 blocks a year which will pay back the loan within a relatively short period,” he said. “I believe a lot of people in Guyra will take the opportunity to upgrade to the new estate and leave some of the lower cost houses available for first home buyers.

At present many tomato farm workers travel from Tamworth, Armidale, Glen Innes and Inverell and stay in rental accommodation, the Mayor said. Many people wanted to live permanently in Guyra because of the work available.