As the only person in Tasmania* with Freo number plates, I feel uniquely qualified to comment on this. Putting housing there will do nothing to solve the housing problem - that close to the city, only chardonnay-sipping, Range Rover-driving, half-time leaving types will be able to afford to live there. Fixing the health system requires constant money - say, the injection of a stadium's worth of cash every year. The gov'ment needs to try something radical and innovative, like making the rich pay tax.
As for relocating the Toilet Ducks, I say "hasn't Tasmania suffered enough?"
* Prove me wrong.