Andrew Barr, David Pocock lobby Albanese government to waive ACT historic housing debt

Mr Barr said he had written to Prime Minister Anthony Albanese and Treasurer Jim Chalmers, and met with ACT senator and Finance Minister Katy Gallagher about the issue, as he continues a long-running campaign to have Commonwealth forgive the debt.

The Chief Minister has again promised the millions spent on servicing the decades-old loan would be invested into "much-needed" social and affordable housing in the nation's capital.

"I have raised the issue of the ACT's historic housing debts on numerous occasions with successive Commonwealth governments," Mr Barr told The Canberra Times

"I remain committed to reaching a satisfactory resolution for the ACT."

Mr Barr made the comments after independent ACT senator David Pocock used a speech to an affordable housing summit on Friday to renew calls for the debt to be wiped.

Senator Pocock said the status of the debt would be "front of mind" as he weighed up whether to support Labor's legislation to establish a $10 billion fund to build 30,000 new social and affordable properties in the next five years.

The comments suggest the rookie senator might be willing to use his crucial crossbench vote as a bargaining chip to pressure the government to wipe the debt.

The former Coalition government waived Tasmania's own historic housing debt in 2019 after that state's independent senator - Jacqui Lambie - agreed to support its income tax cuts. South Australia also had its $320 million debt set aside in 2012-13.

In his speech to the annual Affordable Housing Development and Investment Summit on Friday, Senator Pocock said it was "sheer madness" the ACT government would have to spend more than $33 million servicing the housing debt over the next decade.

"That's money that could be going towards the construction of new social and affordable housing," he said.

"Housing that is so desperately needed here [the ACT] where we are the most expensive city in which to rent and the second most expensive in which to buy."

The former Wallabies captain campaigned on the issue during the federal election, vowing to use his position on the crossbench to push the government to waive the debt.

Senator Pocock said he pushed his case in recent meetings with Mr Chalmers and Housing Minister Julie Collins.

Labor has left itself vulnerable to accusations of hypocrisy if it doesn't wipe the ACT's debt after comments it made while in opposition.

Senator Gallagher used a Senate estimates hearing in February to blast the former government for not considering wavering or refinancing the territory's housing debt.

"Do I have to become an independent in order to get the ACT housing debt waived?" Senator Gallagher said.

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"It's not policy-based and it's not fair."

Senator Gallagher's office to declined to comment when contacted by The Canberra Times, while Mr Chalmers and Ms Collins did not respond before deadline.

ACT Labor MPs Alicia Payne, Dave Smith and Andrew Leigh were also invited to comment.