House debates

Wednesday, 18 June 2008

Matters of Public Importance

Economy

5:12 pm

Photo of Julie CollinsJulie Collins (Franklin, Australian Labor Party) Share this | Hansard source

If we are going to discuss government failure to address the cost-of-living and other economic pressures faced by Australians, we really need to be talking about those opposite, because they, as the previous government, are the only ones who have failed to deal with the costs of living. They received warnings on inflation from the RBA. While the RBA was trying to act responsibly in trying to put downward pressure on inflation, the response we had from those opposite in the lead-up to the last federal election campaign was to throw money at electorates they thought they could win. They went on a spend, spend, spend campaign and that was their response to economic pressures faced by Australians.

But as a previous speaker said, the most appalling thing that they did was introduce Work Choices. Work Choices stripped away the basic entitlements and conditions of workers. This really showed just how out of touch they were. Their failure to address these pressures faced by Australians resulted in their loss on 24 November. They seem to think the troubles that people are experiencing and the rising prices magically appeared the day after the federal election—they did not. Apparently, now even the drought appeared on 25 November, but who is to know?

To members who sit on this side of the House now, and to anyone paying attention, it was obvious that a string of interest rate rises would have a devastating impact on the lives of Australians. However, the federal government at the time just were not interested in dealing with the problem. Instead, they were making promises they could not keep. They were throwing money at electorates that they thought they could win, without any fiscal consequences whatsoever. We also had the Assistant Treasurer remind us of what another of the former government’s responses was to this—to say that working families have never been better off.

In stark contrast, federal Labor was in touch with local communities. We were in touch with the issues facing Australians and our response was delivered in our election commitments and the federal budget. It was a $55 billion families package that included $46.7 billion in tax relief directed at low- and middle-income families, the people who need it most. The federal budget delivered an increase in the childcare tax rebate from 30 per cent to 50 per cent, also increasing the cap from just under $4½ thousand to $7,000 per child per year and, for the first time, we are paying it quarterly rather than making the families wait for reimbursement of the money that they have already spent. We have also recognised that families need more support with education costs. We have introduced the education tax refund. This will help with the education expenses of those in families that are currently receiving the family tax refund. It will provide up to $375 for each child in primary school and $750 for each child in secondary school.

As further acknowledgement of cost-of-living pressures, this government is also doing something to help those who are doing it tough. We are extending the eligibility criteria for the utilities allowance to now cover carers and disability pensioners as well as those who are already in receipt of the payment. Not only did we expand the eligibility criteria; we also increased the amount paid to people. We have quadrupled it, in fact, to $500 a year. To further help with regular bills, we are now paying this allowance in quarterly instalments also. We are giving people, those who are doing it tough, more in this one quarterly instalment than those opposite offered them for a whole year.

This government has acted and will continue to act to ensure that working families, working Australians and those doing it tough are assisted. It is recognition that people are dealing with rising prices, rising interest rates and rising inflation. Federal Labor are prepared to act and we have acted. To combat rising fuel prices, we have proposed the Fuelwatch scheme. It is a scheme that offers greater transparency in the often murky world of petrol pricing. I note that Mr Greg Goodman, the chief executive of the RACT, or the Royal Automobile Club of Tasmania—which is the peak motoring body in my home state—says, in reference to Fuelwatch:

My own view is that the proposed fuel watch program will empower motorists in Tasmania by giving them information on which they can make informed choices.

That is right. It will give consumers the information they need to make informed choices. It will give the consumers the same information that the oil companies already have. What is so wrong with that?

What are the opposition doing? They are blocking it. The Liberal Party in the Senate is also blocking other legislation designed to help those needing assistance. This government has been working within the constraints of the current world economic situation to ensure that those needing assistance are given it and it is also giving Australians an economically responsible budget to put downward pressure on inflation and downward pressure—

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