Sid Sidebottom (Braddon, Australian Labor Party) Share this | Hansard source

I resume my contribution to this debate that was so rudely interrupted by question time! Unlike those opposite, I believe not only that there is a global financial crisis but also that it is incumbent upon us to do all we can to try and deal with that both nationally and at the local level, particularly in my electorate of Braddon, which is on the north-west coast of Tasmania. Our economy is relatively strong, but we will not be immune from the global slowdown. That is why this government has taken early and decisive action. I would also like to place on the record that, contrary to what those opposite have said, they do not believe that this crisis is as serious as it is made out to be, and they are not prepared to offer their bipartisan support.

Where I live on the north-west coast of Tasmania, the Rudd government’s $10.4 billion Economic Security Strategy, which the Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 and cognates bills deal with, will ensure that more than 25,000 pensioners and carers receive lump-sum payments to help ease the financial pressure they are currently under, while also boosting the local economy. That is at the heart of the stimulus package and this Economic Security Strategy. I share with all members in this House the intention to localise this and to see the benefits of this for people who are feeling the difficulties that we are now experiencing. I know that it may appear like an Indian summer to some, but this financial crisis is here and the more we hear about it, the more we hear that people are being affected by a lack of confidence. I think it is really important that we in this House do everything we can to try and engender a positive attitude towards what is happening. A lot of this is attitudinal and comes from the top down. This strategy intends—and you can nitpick all you like—to stimulate spending, to stimulate the economy and to stimulate confidence. Without it we will have more dire consequences than we care to admit.

There are nearly 10,000 north-west families receiving family tax benefit part A in my electorate, and they will receive a $1,000 payment for each eligible child in their care. In real terms, this will help around 18,659 children in my electorate while easing the financial burden on parents in the lead-up to Christmas. These are real people experiencing real difficulties, and this is a real attempt to help them through difficult times. When you also factor in the uptake of the increased first home owners grant, the direct injection into the Braddon economy as a result of the Economic Security Strategy which we are dealing with will be more than $62 million. That is an additional $62 million on top of those benefits that were granted in the May budget and also in addition to those projects and commitments that are going to be rolled out in my electorate—and throughout Australia—particularly in relation to the Better Regions program.

So this is part and parcel of a strategic package to stimulate the economy; to assist families and individuals, small businesses and larger businesses—given our recently announced car plan—and, at the same time, to give confidence to those who want to invest through our banks and to borrow through them. So you can nitpick all you like; that is the intention, that is the aim and the Australian people endorse it strongly.

I know we can put any spin we like on polls, but I noticed that yesterday’s Essential Research poll had some very interesting indicators for us. In relation to keeping interest rates down, 56 per cent of respondents believed that this government’s attempts were good to very good. That is a sound endorsement of this economic package. In terms of economic management, 54 per cent believed the government’s performance was good to very good. Even on controlling inflation, 49 per cent said the performance was good to very good—and that was an 11 per cent increase on less recent polls. In terms of economic management, there was a 12 per cent increase on less recent polls, and on keeping interest rates down, there was a 25 per cent increase on less recent polls. That is an endorsement of a government that the opposition claim has a credibility problem in terms of economic management. The Australian people do not believe it. They did not believe that in the past election and they do not believe it now.

Included in our package to assist those who are struggling is $1,400 for single pensioners and up to $2,100 for couples—real money for real people experiencing real difficulties; $1,000 to recipients of the carer allowance for each person in their care; $1,000 for each eligible child for families who receive family tax benefit A; funding for 56,000 new training places, on top of an allocation of many more training places in the May budget; and, finally, up to $21,000 for first home owners in grants to stimulate demand, to stimulate spending and to stimulate confidence. As part of the $10.4 billion Economic Security Strategy this government will deliver, I estimate $19 million will go in immediate financial support to more than 10,500 families in Braddon. I reiterate that families receiving family tax benefit A will receive a one-off, $1,000 payment for each dependent child—real payments to real people for real relief. Families whose dependent children receive youth allowance, Abstudy or a benefit from the Veterans’ Children Education Scheme will receive a one-off, $1,000 payment for each eligible child. I think it is important for the record that eligibility for any payment is determined by a person’s circumstances on 14 October 2008. The lump sums will be made payable by Centrelink automatically in the fortnight beginning 8 December 2008. I would also add that, for the small number of recipients who claim their family tax benefit A annually as a lump sum payment through Centrelink, the one-off payment will occur when their 2008-09 actual income has been received from the tax office and their family tax benefit is reconciled.

I estimate that some $43 million will be allocated to the pensioners and carers of Braddon to stimulate confidence and to stimulate spending. The Rudd government’s Economic Security Strategy will provide $4.8 billion in lump sum payments to assist age pensioners, veterans’ disability support pensioners and carers. This is about people. It is not about airy-fairy words thrown around in this parliament or insults, tit for tat or whatever else; we talk about real people, individuals and families. And when you drill down to the local scene, such as to where I come from in Tasmania, I would like you to look at some of these numbers: 13,000 age pensioners will be positively affected, as will 3,494 carer payment and carer allowance recipients. Other benefits will be received by 5,641 disability support pensioners, 887 Commonwealth senior health card holders, 113 wife and widow pensioners and bereavement allowance recipients, 1,550 veterans service pensioners, 638 eligible war widows and those of pension age who receive parenting payment, special payment or Abstudy. Pensioners who were eligible on 14 October 2008 will be paid by Centrelink or DVA in the fortnight beginning 8 December 2008. I reiterate that, depending on the eligibility, the payment is $1,400 for singles and $2,100 for couples. The carer allowance recipients will get $1,000 for each eligible person in their care. That is real support for real people experiencing real difficulty.

Fifty-six thousand training places are being made available through this strategy on top of those training places that were allocated in the May budget to stimulate and support job creation, which is so vital not only for individual circumstances but to create confidence in our economy and our community. The increased funding will effectively double the existing Productivity Places Program and take the Rudd government’s total investment in training places to more than $400 million since April 2008.

To support people who are trying to get into their first home and to stimulate the housing industry to build new homes, from 14 October 2008 until 30 June 2009 first home buyers who purchase an established home will receive a $14,000 first home owners grant, an important boost to stimulate an important industry, to stimulate jobs and to stimulate confidence. That is what this strategy is all about. First home buyers who purchase a newly built home will receive a $21,000 grant. I know that members on this side, and I am sure members on the other side, have had people ringing up to get more details about this and are very pleased by it. If it is policy we share with the past and with other administrations, it is good policy. It is there to stimulate and that is what it is designed to do. It is a very important part of the strategy.

If they are not au fait with this, I remind members and others that as of Monday the 16th the deeming rate for something like 730,000 part-rate pensioners will drop, meaning they will receive a boost to their pension. Indeed, the deeming rate will drop from four to three per cent for the first $41,000 of single pensioners’ financial investments or the first $68,200 for couples. It will also cut the rate from six to five per cent for the balance of financial investments over these amounts. That is an important additional piece of support. This government has tried to act early, to be consistent in what it has done and to be decisive.

We have also acted to guarantee bank, building society and credit union deposits and bank funding. We will also provide additional protection to policyholders in the unlikely event that a general insurer fails. There are also new measures to ensure the continuing integrity, fairness and transparency of our markets, and that is why the independent regulator, the Australian Securities and Investments Commission, ASIC, introduced a temporary ban on short selling. Transparency is vital to promote investor confidence. Investor confidence relies on the integrity of market systems and the institutions that serve the market. When properly regulated, short selling has a role in the operation of our markets, but it is prudent to restrict it at a time of heightened market uncertainty.

The government is also ensuring that the regulators who act as the guardians of our financial system are properly resourced. That is why we have approved extra funding for both the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission. ASIC’s funding in 2008-09 is budgeted at $303.3 million, which represents an increase of about 85 per cent in real terms since 2000-01. The Prime Minister also recently announced that ASIC would receive additional funding of $10 million in 2008-09 and $20 million in 2009-10 to provide the front-line resources to undertake market monitoring and enforcement. These measures add to the government’s $10.4 billion economic security package, which will provide much-needed assistance to Australian families, pensioners and carers while underpinning growth in our economy. The Economic Security Strategy complements the Reserve Bank of Australia’s recent move to cut official interest rates and measures the Rudd government announced in the 2008-09 budget, which I alluded to earlier.

In concluding, I am proud that we are able to present an economic security package which seeks to stimulate spending in this country and confidence in our institutions and businesses and to assist people who genuinely need it. I know those on the other side share that sentiment. I ask them to show it by not nitpicking or tit-for-tatting on what is a very important piece of legislation.

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