Chief Minister Andrew Barr rejects calls to condemn Katy Gallagher over housing debt

But the government has rejected calls to condemn Senator Gallagher over her comments that the Commonwealth was not in a position to waive the $100 million debt.

Opposition housing spokesman Mark Parton moved a motion on Wednesday afternoon calling for all party leaders to write to the Finance Minister over the "backflip".

Mr Parton told the Assembly it would be hypocritical for Chief Minister Andrew Barr to not support his motion as he had been critical of the former Coalition government for not waiving the debt.

"The long-term $100 million housing debt was so important when Scott Morrison was the prime minister and when Zed Seselja was an ACT senator," he said. "According to Labor and the Greens they were being held back by the evil [Liberal National Party]."

However, Mr Barr moved amendments to the motion. The Chief Minister's amendments included that the three party leaders continue to communicate with Katy Gallagher and other relevant federal ministers about the debt.

Mr Barr said it was still the position of the government that the debt should be waived and they would continue to argue for this.

He also argued that, unlike the previous federal government, Labor believed there was a role for the Commonwealth in social housing provision. The Chief Minister also said there were discussions between the federal and state and territory governments about maximising investment in social and affordable housing.

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The motion amendments required the government to report back to the Assembly by the final sitting day of 2023 on the progress of those discussions.

Mr Barr did not specifically criticise Senator Gallagher in his speech, however, he did express his disappointment that it would not be a line item in next week's federal budget.

Mr Parton's motion was prompted after Senator Gallagher said last week that forgiving the loan was "not that easy". She had previously criticised the former Coalition government, including ex-senator Zed Seselja for not waiving the loan during her time in opposition.

The $98.3 million housing debt to the federal government was inherited by the territory during the transition to self-government in 1989. Over the next three years the government would have to pay $27.7 million in principal and interest to service the debt.

ACT Greens' member for Brindabella Johnathan Davis also spoke to motion, accusing Mr Parton of moving a "carbon copy" of a motion that he had presented to the Assembly in June. Mr Davis' motion had called on the Chief Minister to continue to raise the waiving of the debt following the election of the federal Labor government.

Mr Parton said the opposition could not support the amendments to the motion as it "just tiptoes around the issues at hand".

"It completely ignores what is valid criticism of the federal Finance Minister," he said.

"As embarrassing as it may be for ACT Labor, they should be bold enough to condemn their own and call out the Finance Minister for failing to fulfil a very clear promise."

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