Burnie mayor Steve Kons has invited House of Assembly Speaker Sue Hickey to visit the city and outline her solutions to the housing shortage.
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Alderman Kons said Ms Hickey, the Liberal member for Clark, had written to him asking for council's ideas for allowing homeless people better access public toilets and showers.
In the letter, Ms Hickey said more than 74,000 Tasmanians lived below the poverty line and more than 1600 people "live homeless each night in Tasmania".
"As a result many people facing Tasmania's housing crisis have limited access to public amenity facilities such as toilets and shower blocks," she wrote.
"I am contacting you to gain a clearer perspective of the housing situation in your municipality to better cater for the needs of those found in this devastating situation in our state.
"I would be most appreciative if your council has any proposals or suggestions how this situation may be revised to enable people who are in housing stress are able to access public facilities such as public showers and toilets at more appropriate times for example over night or in time to go to work or take children to school."
Alderman Kons said there was a "desperate" need for affordable housing in Burnie.
"The shortage is on a par with the rest of the state," he said.
"It's about putting a roof over people's head.
"The government might be allocating land but they need to be building houses.
"I'm sick of hollow talk by politicians on housing - we want to hear Ms Hickey's solutions to the problem.
"I challenge her to say how the problem can be solved."
Alderman Kons, a property developer, personally supports the state government adopting a scheme similar to the National Rental Affordability Scheme.
Under the scheme, financial incentives are offered to investors to build and rent dwellings to low and moderate income households at below-market rates.
"The Tasmanian government needs to encourage the private sector to build good quality, affordable homes," Alderman Kons said.
"They could provide a subsidy and then investors would be able to rent the properties at 80 per cent of the market value.
"If the state government provided $35 million that could build 3500 homes and that is the number of people on the public housing waiting list.
"That is a not a huge amount of money in the total state budget."
Alderman Kons said he offered the former Brooklyn primary school, which he owns and uses as accommodation for fruit pickers during summer, rent free to people needing shelter when it was not being used.