House debates

Wednesday, 27 August 2008

Matters of Public Importance

Economy

4:31 pm

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

We are debating the myth spread by members opposite that the government is not accepting responsibility for the economy or taking any action. One thing we can all be sure of as we face the challenging world economic situation is that most Australians are better off under this government than they would be if members opposite were still in government. They presided over 12 years of inaction; they did nothing to help Australians doing it tough. They had inflation running at a 16-year high. Australians endured 10 interest rate rises in a row, giving the country the second highest rates in the developed world. That string of rises had a devastating impact on the lives of all Australians.

We should refer to members opposite if we talk about responsibility for the economic situation in Australia. In addition to economic management, we are also dealing with the challenges of the global economy. This government is not walking away from those challenges; it is taking responsibility for them. The Prime Minister said today that the government accepts responsibility. The global oil shock has resulted in increasing food prices and other living costs. Several global factors are at work, but we are making progress.

This government has introduced measures to address these issues. We have heard from the Minister for Housing. We are talking about broader issues in the Australian economy. We are also tackling the issue of homelessness. If members opposite were still in government, we would not even have a housing minister. That is indicative of how much things have changed and how much action has been taken. But when people woke up on Sunday, 25 November the world was not a different place and the world economy’s effect on all Australians had not changed.

This government’s first budget delivered a $55 billion package for working families. It put money back into the pockets of Australian families. As part of that package, the government is taking action on an important issue that is very dear to me—that is, child care. I had the misfortune to have my children in child care under the former government. I say ‘misfortune’ because paying childcare fees under the former government was like having a second mortgage. Over 11 years under that government childcare fees almost doubled. What action did members opposite take to help those Australians with children in child care struggling to pay increasing childcare costs and increasing mortgage payments? We know the answer to that; it is the answer to any question about what they did: not much, very little or nothing. After years of community pressure, the former government finally gave in and provided some relief in the form of the 30 per cent rebate. However, they made families wait nearly two years to get that relief and then, in a desperate election bid, they made the rebate annual.

The Rudd Labor government is helping Australians doing it tough paying childcare bills by acting and taking responsibility. This government has increased the childcare tax rebate from 30 per cent to 50 per cent of out-of-pocket childcare expenses. That is having a big impact on families with children in child care. This government is also increasing the annual limit claimable by families from $4,354 per child per year to $7,500 per child per year. These measures will provide the average family with a benefit of $500 to $2,500 extra in their pockets each year. That is significant assistance to those families. The rebate will also be paid quarterly, with the first payment being made to families in October. That is right: action in October by the Rudd Labor government. These are all important measures that will help many Australians.

We heard from the member for McPherson about seniors and pensioners. This government is concerned and it understands that they are doing it tough. More than 90 seniors attended a seniors forum that I conducted in my electorate. They talked to me about their ideas and concerns and I listened. The Minister for Human Services, Senator Joe Ludwig, attended and he also heard their concerns. That is why the government is conducting a review of pensions, carers and disability support mechanisms. That is why it is looking at long-term benefits for those Australians and how it can assist them over the long term. This government is acting, it does care and it is concerned for the welfare of older Australians.

The government has also provided short-term assistance. It has increased the utilities allowance from $107 to $500 a year, and it is now being paid quarterly—that is, when the seniors get their bills. It has also increased the seniors’ concession allowance from $218 a year to $500 a year and the telephone allowance from $88 to $132 a year for those with an internet connection. It has also committed to paying the seniors’ bonus again, and they have already received their bonus this year. Seniors in my electorate of Franklin are pleased with that short-term assistance and that over the long term this government is doing something to help them.

The government’s first budget was a responsible budget and it delivered assistance to working Australians doing it tough. The tax cuts were aimed at low- to middle-income earners, who need them most. What has been irresponsible is the response to the budget from those opposite. Those opposite are refusing to take responsibility for their 12 years of inaction. What are they doing now? They are threatening the budget surplus in the Senate. They are trying to blow a large hole in the budget surplus in the Senate. What will that do? As we heard today in question time and yesterday in question time, that will put at risk our strict budget measures trying to put downward pressure on interest rates.

I wonder if those opposite really want interest rates to come down, because their behaviour certainly does not show that they actually care about what is happening. If they are really concerned about those doing it tough, if they are really concerned about pensioners, then perhaps they should put some detailed policy on the table that will produce some budget savings, that will put downward pressure on interest rates, that will assist working Australians doing it tough. All we hear from those on the other side is criticism, criticism and more criticism. We see no action from them. They do not have any plans for Australia’s future. They do not have any plans to put downward pressure on interest rates. They do not have any plans to put downward pressure on inflation. All they do is try and score cheap political points. People out in the electorates are doing it tough. We recognise that and we are acting on it; we are acting on it every day with our policies. We have acted on it in our budget. We have acted on it in our housing measures. We have acted on it in our childcare measures. We have acted on it in a whole range of other measures in this budget that we have delivered.

I call on the opposition to support the budget in full in the Senate and deliver for those Australians who are doing it tough out there in the electorates at the moment. Those on the other side really cannot come in here and claim to care about Australians who are doing it tough when they behave in such an irresponsible manner and do such irresponsible things with this government’s budget. This government was elected to govern. This government was elected to make tough decisions, and that is what we have done in our first budget. I call on the opposition to support it in full in the Senate.

The other issue that I wanted to talk a little bit about before I finish up is—

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