Roger Price (Chifley, Australian Labor Party) Share this | Hansard source

It is a pleasure to follow the honourable member for Calwell’s contribution on the appropriations. Labor welcomes the tax cuts and the one-off payments, because many families and carers are under financial pressure. This is a clever election year budget and it fails the future test. This budget does little to build Australia’s future productivity. Instead, it relies on the continuation of the mining boom for future economic prosperity. It fails to address long-term challenges for Australia’s future, including the urgent need to revive Australia’s flagging productivity, investment in an education revolution, delivering a national high-speed broadband network and decisive action to deal with the economic costs of climate change and the national water crisis.

I was in Blacktown last week celebrating the third year of operation there of ADRA, the Adventist Development and Relief Agency. They had come to see me before it was set up and now we were celebrating its three years of service to the Blacktown community. I would like to particularly congratulate David Haupt, who is the manager there. I would also like to mention John Eastwood, a lovely member of the congregation, who I feel is my personal ambassador. He certainly makes me most welcome whenever I am at an Adventist function. I thank John for his kindness.

ADRA asked me to talk about social change in Blacktown and it made me think quite a bit. Mr Deputy Speaker, you may recall that in the 80s and 90s there was a lot of shedding of unskilled jobs in the economy. Nothing exemplified this more than service stations, which went from having people to fill your car up with petrol to having self service. I cannot think of a service station in my electorate that is not completely self service.

What has typified the most recent changes in Blacktown—although I suspect the honourable member for Fowler will agree that it is wider than Blacktown and includes Western Sydney—is the growth in the number of pawn shops that have been established. There is also the completely new phenomenon of these shops where you can get a cash advance on your salary. They are something that is completely new. We did not have them in the past but now they are dotted throughout my electorate in every shopping centre. They symbolise some of the changes that have occurred in our society.

But there is also so-called easy credit. There has been a change in the role of banks from being marshallers of finance. You used to know your bank manager and you would establish a good savings record with the bank or credit union before you would get a loan. These days, teenagers get credit cards through the mail and sometimes these are uninvited. Such is the social revolution that is occurring. Why is all this important? I think it is true to say that the people of Western Sydney—particularly families—are under enormous financial pressure.

Before moving on from the subject of ADRA I would like to mention Michelle, who is one of their clients. What a heroine she is. Unfortunately, DOCS and other related organisations took her baby away from her on the basis that she was diagnosed with borderline personality disorder. ADRA were her last port of call and with their help she was able to recover her baby. They are both doing extraordinarily well. I thank Michelle for sharing her story with us. The most chilling thing that Michelle said was that there are many other women out there who are being similarly diagnosed with this so-called borderline personality disorder and are having their children taken away from them. There are going to be circumstances where, in the interests of the child, it is important that that happen. But the story that Michelle told is of young mothers who are frustrated and angry with the system. For no more than being diagnosed as having borderline personality disorder they are having their children taken from them. It is something we need to keep our eye on. Perhaps it will not be until the next parliament, but I know that the honourable member for Fowler, who is the Deputy Chair of the Standing Committee on Family and Human Services, will take an interest in this matter so that Michelle’s voice will be heard.

We are under enormous pressure. You only have to see the repossessions and bankruptcies. House repossessions are soaring. In 2006 there were more than 5,000 repossessions in New South Wales alone. Some of them occur because of relationship and marriage break-up—I am happy to admit that—but that is a staggering figure. Repossession orders in New South Wales are now higher under John Howard than they were under Paul Keating in 1998 when interest rates were 17 per cent. We are constantly reminded in the House about interest rates of 17 per cent. Well, mortgage repossessions in New South Wales are now higher under John Howard than they were under Paul Keating.

The Chief Executive of Insolvency Trustee Service Australia, Mr Terry Gallagher, told Senate estimates that bankruptcies grew by 12.5 per cent in nine months to March 2007. Debt agreements, which are binding arrangements between people who cannot pay their debts, have jumped by a massive 32 per cent in nine months to March 2007. Across all forms of personal insolvency total activities increased by 15 per cent, up from seven per cent last year. I repeat that figure: it has increased by 15 per cent, up from seven per cent last year—that is, more than double. Ten or 15 years ago bankruptcy numbers were 13,000 a year, but now they are 30,000 a year—13,000 a year 10 years ago; 30,000 now, which is nearly a tripling. That is what he told the Senate estimates committee on 21 May. What does the Prime Minister say? The people of Australia have never had it so good. In 1990 interest rates were 17 per cent but they were 22 per cent in 1982 when John Howard was Treasurer.

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