Chris Hayes (Werriwa, Australian Labor Party) Share this | Hansard source

The global financial system is experiencing one of its most significant upheavals in living memory. To that extent, I actually agree with those comments just made by the member for North Sydney. This is a situation of such magnitude that it requires the focus and attention of all decision makers in this country. It is the most serious global shock since the Great Depression. In that respect, and what the member for North Sydney failed to go on to say, it does require not only decisiveness from those who are administering our financial sector but leadership and decisive action from the government.

The Rudd Labor government made tough decisions in its May budget this year. It made a decision to build up its surplus and, Mr Deputy Speaker, you will recall at that stage that the government met with some castigation about building up a $22 billion surplus. It was there to put downward pressure on inflation. More importantly, building up a surplus provides a buffer for more difficult economic times. What we have heard through the course of the debate so far, and no doubt what we will hear through the rest of this day, is that these tough times that people put surpluses aside for have arrived. It was not expected. No-one forecast the actual dynamics of the American position in terms of the subprime crisis and the extent to which it would export that crisis to the rest of the world, but it has happened. These tough times have arrived. It is this government, however, that is now acting decisively to use the surplus that it had the foresight to build to strengthen and underpin the Australian economy. The government’s Economic Security Strategy is a significant economic response to do with the extraordinary economic times that we are now facing.

The Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 and associated bills before the House today are a key component to introducing the government’s $10.4 billion Economic Security Strategy to strengthen the Australian economy and to support Australian households during this time of global financial crisis. The two supplementary appropriation bills seek to appropriate a total of $1.33 billion. The supplementary Appropriation (Economic Security Strategy) Bill (No. 1) 2008-2009 seeks total appropriations of $146,054 million for the following initiatives. There will be $117 million to create 56,000 additional productivity job seeker places in 2008-09. This is for the funding of Certificate levels I, II, III and IV in vocational education and training. It will apply over the next two years and provide an additional commitment by this government of over $187 million to develop the skills which are absolutely needed by Australian industry presently. In addition to the 50,000 training positions provided in the budget, this is another 56,000 training positions.

With the slowing of the global economy, the Rudd government is committed to supporting and training job seekers to ensure that all those who can benefit from the extra help have access to those places. Increasing productivity and commitment to the skills agenda is an essential component to this government’s economic platform. These new places will help to maintain the momentum of the program, which has already been generated, and provide the skilled labour to meet the current needs of our industries.

The other initiatives include $17.2 million for the administrative costs in implementing the immediate financial support for the four million pensioners, carers and seniors and around two million low- and middle-income earners who will benefit from the rollout of this package from 8 December this year. There is another $11.5 million for a public information campaign. I should note that this will only be done to ensure that those eligible recipients of the one-off lump sum payments are advised of their entitlements. This is in stark contrast to the taxpayer funded advertising campaign that was associated with the former government’s position to prop up the failed Work Choices scenario, which totalled $137 million of taxpayer funding.

Appropriation (Economic Security Strategy) Bill (No. 2) seeks an additional appropriation to implement the government’s initiatives with respect to the First Home Owner Grant scheme, which will provide around $1.5 billion over two years to introduce the first home owners boost. The boost will be available to those eligible for the first home owners grant who enter into contracts between 14 October 2008 and 30 June 2009. First home buyers who purchase established homes within this time frame will receive an extra $7,000, taking the total grant to $14,000. First home buyers who purchase a newly constructed building will receive an extra $14,000, taking the Commonwealth contribution up to $21,000. In addition, I noticed yesterday that the New South Wales government, as part of their minibudget, has included an extra $3,000 to be attached to the first home owners grant. For people in New South Wales, including those in my electorate, that takes the total grant up to $24,000 for those looking to buy a newly constructed home. These measures will help many aspiring first home buyers around Australia—and, more importantly, as I just indicated, in my electorate of Werriwa in the south-west of Sydney—to enter the housing market.

Over the course of the last couple of weeks I have had the opportunity to speak to many first home owners or those wanting to become first home owners. I have also taken the opportunity to speak to many real estate agents in my electorate. One of the familiar themes in any of these discussions is that this grant is great news for people who are planning or thinking about making that commitment to purchase. Sure it is that, the way this boost is constructed, people who are thinking about it can bring that commitment forward and make it before 30 June next year. This is certainly very good news for helping people into the market. It is also very good news for our domestic or cottage based construction industry, our housing industry. I know only too well the significance of that, having two sons, one a builder and one an electrician. I know the ebbs and flows in that industry. Despite what we have been told over the last number of years, I have seen firsthand in the downturn how my sons have been paid, for instance, in saws or compressors because the people engaging them did not have the money to pay them. So I know what it is like in that industry. But I also know what it is like to bring some hope to that industry to ensure that there is commitment to the move ahead.

This boost for first home buyers tries to funnel in people who are going to plan for and make that decision, but it gives a time constraint. Not only will this boost help those who are moving into the market but also it will help maintain continuity within the housing industry itself—maintaining those skills, maintaining those workers and maintaining those tradesmen. That has got to be good for the economy as well. The first home owners grant as it applies presently will continue to be administered by the states and territories over the next two years. To that extent, $1.2 billion will be transferred by the Department of the Treasury to our state and territory governments for that purpose.

The other legislation before us is the Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008. This bill will amend our social security laws, our family assistance law, our Veterans’ Entitlements Act, the appropriate tax law for payments to pensioners, seniors, people with disabilities, carers, veterans and families with dependent children, as announced by the Rudd government on 14 October 2008. This is an absolutely key part of the $10.4 billion Economic Security Strategy. The government’s Economic Security Strategy will provide a lump sum payment of $4.8 billion to provide immediate financial support to pensioners, seniors, people with disabilities, carers, veterans and families with dependent children during this global financial crisis. It builds on the additional support provided to pensioners in the government’s first budget. It also recognises that pensioners and working families are calling for help—they are calling for it now. It will responsibly deliver real and immediate support to the people who, as we in our position say, need it most.

Through this Economic Security Strategy over 5.2 million pensioners, carers and families will receive a one-off payment, commencing on 8 December this year. Only a few weeks ago, the opposition were saying that they wished only to give relief to age pensioners. If we adopted that position, as the Leader of the Opposition was pressing at that time, 4.3 million pensioners, carers and families would have missed out completely. We are not about pitting pensioner groups against others. We are about looking after those who need it most in our society. The Rudd government understands that most pensioners around Australia are doing it tough and we are committed to fixing Australia’s pension system—something our predecessors failed to do in their 12 years in office. We are determined to get it right, and we will get it right for the long term. The payments in this package are intended to provide the additional support in the nine months leading up to when the new system will be introduced come the next financial year.

I would like to spend a little bit of time talking about what this package means for the people in my electorate of Werriwa. My electorate is in the south-west of Sydney and is home to not only lots of residents but also lots of young families. It is an area where people tend to buy their first home. Others, like myself, not only bought their home but stayed there for the next 32 years as well. When you look at the demographics of my electorate, in the south-west of Sydney, you see that we are one of the most culturally, economically, ethnically and religiously diverse electorates. The demographics are such that diversity is, quite frankly, one of the key defining features of Werriwa. It has a solid core of working class housing commission estates, amid intergenerational unemployment and pockets of disadvantaged communities. It is typically an area of young people, with scores of families who are on low to middle incomes and who are under real financial pressure. For instance, of those who are purchasing houses in my electorate, 58 per cent are already under housing stress. For those low- to middle-income earners who are renting or are seeking to rent in the private market, 45 per cent are under housing stress. Housing stress means that more than 30 per cent of household income is going to pay either the mortgage or the rent. The global financial crisis is placing increasing pressure on these constituents in my electorate who already have their budgets stretched by the rising cost of living. The measures in this package are very much welcomed by families in my electorate who are making their family pay packet stretch from one fortnight to the next.

Interestingly, the actual number of people who will be direct beneficiaries of this financial package in my electorate is 38,708. That is quite a significant total. I will just indicate who will actually receive the benefit of these payments come 8 December. They include: 101,000 age pension recipients, 1,755 carer payment recipients, 5,260 disability support pensioners, 722 Commonwealth seniors card holders, 4,312 carer allowance recipients and 112 service pension recipients. But one of the big statistics out in Werriwa is that 16,407 families who are currently on family tax benefit part A will be direct beneficiaries of this package. A payment of $1,400 will be made to single age pensioners or holders of one of these stipulated payments or cards. Age pension couples will receive $2,100. That is quite a significant adjustment to be made just prior to Christmas this year.

Adrian Hart and his wife Patricia are long-time friends of mine. As a matter of fact, I used to work with both of them many years ago. Adrian was speaking only recently at a pensioner forum and said that, as he sees it, pensioners in my electorate, such as he and his wife, will benefit greatly from the $2,100 payment. The Harts have made it very clear that they have had to cut back on a range of things such as visits to family and friends, holidays and that sort of stuff. They certainly singled out as one of their main areas of concern rising petrol prices and living costs, and they have had to cut their costs accordingly. In doing so, they have made numerous adjustments to their lifestyle. He went on to say that this one-off payment will actually mean that, coming up to Christmas this year, they will be able to celebrate with their family and buy presents for their grandkids. That is only one couple, and it is one that I know directly and, as I said, one that I have spent a lot of time working with, but I am sure they reflect the sentiments of many of our age pensioners out there.

For recipients of the carer allowance, a payment of $1,000 will be made for each person who is being cared for. That too will apply from 8 December. I cannot emphasise enough what it is going to mean for people on family tax benefit part A to receive $1,000 per child leading up to Christmas as they are making their plans for next year’s education and other commitments associated with bringing up kids. That is something that is absolutely going to be significant. That will affect over 16,000 families in my electorate alone.

As I said at the outset, these are very challenging times. I agreed with the member for North Sydney about that. But what I went on to say and what I want to emphasise is that it is this government, the Rudd Labor government, which is moving decisively in taking action to address these issues to protect our economy against this global shock of proportions that we have not seen since the Great Depression. (Time expired)

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