House debates

Wednesday, 24 September 2008

Matters of Public Importance

Pensions and Benefits

4:22 pm

Photo of Louise MarkusLouise Markus (Greenway, Liberal Party, Shadow Minister for Veterans' Affairs) Share this | Hansard source

What does the Labor government have against pensioners? Another very important question is: why will the Labor government not help pensioners cope with the increased cost of living? We have all heard the rhetoric, but the simple fact remains that the government have an opportunity to help pensioners and they are refusing to do so. The coalition is not sitting on its hands when it comes to helping pensioners. The most important people in this debate are the thousands of pensioners waiting for solutions. The Urgent Relief for Single Age Pensioners Bill 2008 was passed in the Senate on Monday night. This bill helps the most vulnerable pensioners: the single age pensioners, the single service pensioners and widow B pensioners.

Members on this side of the House have been out and about talking and listening to pensioners, asking what issues are facing them. But the Labor Party are in denial. They make excuses and they talk a lot of hot air—just like their election promises. Let us reflect on Labor’s election promises and the expectations they raised in the community that they had the solutions to rising petrol prices and rising grocery prices. Labor promised to ease the pressure on working families, but they failed to mention pensioners. What is the solution? An inquiry—let’s talk some more! It does not report until March 2009—again, waiting and watching. This pension review adds to more than 165 reviews, committees, inquiries and consultations that the Rudd government has commissioned. It is obvious Labor does not have an answer, and pensioners have to wait 12 months before they get any help from the government.

The coalition has provided a solution now. Decisive action is needed more than ever, and the coalition’s bill to increase the single age pension, the single service pension and the widow B pension needs to be supported immediately. Pensioners need help today. We have started with the single age pensioners, the single service pensioners and the widow B pensioners because they are the most vulnerable. The current single rate of pension is 60 per cent of the combined couple rate. It is lower than the average for major OECD countries, which stands at 63 per cent. The proposed increase of $30 per week would bring the single age pension in line with the OECD average. By failing to support a $30 increase, Labor must have the view that these pensioners do not need an increase. Labor is saying that these pensioners are doing okay and can wait a year or maybe longer—who knows?—before they can get help. Labor is watching and waiting, watching and waiting.

Labor appears to lack understanding. Older Australians’ contribution to this nation is immeasurable. The members opposite should pay attention. Almost half of older Australians aged 65 to 74 years provide unpaid assistance to someone outside of their home. One-third, around 33 per cent, provide volunteer services through community organisations. Twenty-nine per cent are actively involved in other community organisations and support groups of various kinds. The community could not move forward without the contributions of these older Australians. What about the grandfathers and grandmothers who care for their children while their parents work just to keep a roof over their heads? In these uncertain times, pensioners need to know that someone not only is listening but also cares about their circumstances and is prepared to act. Labor, by its refusal to adopt the increase of $30, fails these tests. Labor does not have the answers and will not even address the question, ‘When are you going to help single age pensioners, single service pensioners and widow B pensioners?’ Let us look at the 700 widow B pensioners. By refusing to support the coalition’s solution to assist pensioners, is the Labor Party saying that these 700 widows do not matter?

Of the nearly 900,000 single age pensioners, whose payment is 60 per cent of the combined couple rate, how many are now, as we speak, selling their cars, their assets, and their lifelong memorabilia just to put food on the table? For the many thousands of single age service pensioners this is just another example of how little the Labor government care about the contribution our oldest service men and women have made to this country. In question time today, the Minister for Veterans’ Affairs failed to explain why he would not support the $30 rise for these pensions. The Minister for Veterans’ Affairs prefers that all pensioners miss out. Are the pensioners the coalition is proposing to help worth it? They are. This is another failure to act by Labor. They may acknowledge the problem, but then they ignore it.

On Monday in question time, the Minister for Veterans’ Affairs said that the coalition’s urgent relief bill was ‘a stunt’. What about easing the cost-of-living pressures that continue to build for pensioners? The minister obviously prefers to do nothing. How does that help anyone? The veteran community deserve better. These people have laid down their lives for this country. They have made great sacrifices in carrying out their duty and responsibility, and help for this community should not be labelled a stunt. Such a statement diminishes their value. Responsibility for pension and entitlement payments lies squarely with the federal government. It is a matter of urgency that this increase is given to single pensioners.

But the coalition has stepped in. While the government dithers and waits for the outcome of another review, the coalition has taken decisive action and put forward a solution. The coalition when in government had a strong record of helping older Australians. It was the coalition that introduced the bonus programs in relation to pensioners’ utilities and telephones and the $500 bonus because we recognised that government funded pensions and allowances are the main source of income for most people aged 65 and over. These people do not have the capacity to find extra to cover the rising cost of groceries, fuel and other living expenses. Pensioners are having to cut back on their social outings. They cannot afford to put fuel in their cars.

It was the coalition that introduced the bonuses program, which Labor opposed but now claim to be their idea. It was due to the coalition government’s sound economic management and strong leadership that the incoming Labor government came into government with a fiscal surplus of $22 billion. It is a surplus which Labor are not willing to share in these tough, financially uncertain times with Australia’s most vulnerable individuals. The coalition left Labor with a healthy surplus and no government debt. Yet the government disparage the coalition’s action in trying to help single age pensioners, single service pensioners and widow B pensioners. The coalition started with this group of pensioners because they are the most vulnerable in the community.

The pension review background summary Australia’s future tax system shows that the age pension rate for single, living alone homeowners and single renters, whether in public or private accommodation, was below the relevant budget standard. These people do the least well as they do not have the economies of scale. Overall, the cost of living has increased by 4.5 per cent in the 12 months to June 2008. The coalition have taken action by introducing a bill to give the most vulnerable pensioners an increase in their pension, and we do not intend to stop there. The coalition are concerned at the defiant stance by Labor— (Time expired)

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