House debates

Thursday, 13 November 2008

Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008; Appropriation (Economic Security Strategy) Bill (No. 1) 2008-2009; Appropriation (Economic Security Strategy) Bill (No. 2) 2008-2009

Second Reading

11:28 am

Photo of Jodie CampbellJodie Campbell (Bass, Australian Labor Party) Share this | Hansard source

I rise to add my voice to those in support of the government’s Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 and other bills. These bills form a key component of the government’s Economic Security Strategy—that is, the $10.4 billion strategy to strengthen the Australian economy. At times words can become overused and as a result lose their impact, but there is no more appropriate way to describe the current economic situation than as a crisis. This global financial crisis requires quick and decisive action, and that is exactly what this government is providing through this legislation. This bill provides for payments to pensioners and families, payments which will make an enormous difference at a time when it is needed. This is immediate financial support to pensioners, seniors, people with disabilities, carers, veterans and families with dependent children. You will note that this package covers all pensioners—it is not the practice of the government to single out some groups and exclude others simply because it suits us to make a political point.

We are not, it should be noted, the opposition. For it was they who made great play of caring deeply for pensioners and their plight and yet proposed to offer financial support to a select few. The proposal callously put forward by the opposition left some two million pensioners with absolutely nothing. Instead, we are offering much needed assistance to all pensioners plus families. In my electorate of Bass, this will see almost 30,000 people and families receive one-off payments. Budgets were already becoming stretched. I know that, because that is what people are telling me and my parliamentary colleagues each and every day. But the global financial crisis has added even greater financial pressure to household budgets. As a government we understand that and we have acted. More than 20,000 Northern Tasmanian pensioners will receive payments of $1,400 if they are single or $2,100 if they are eligible couples. Nationwide, this is a $4.8 billion commitment and it builds on the $7.5 billion committed in the Rudd government’s first budget. It brings to a total of $12.3 billion the money committed to seniors, pensioners and carers since the election less than a year ago.

I understand that this is an issue which has concerned many in the community and I guarantee the House that it is something which the most senior members of the government understand also. I know this because it was raised at the community cabinet held in Launceston on the fifth of this month. This was a historic day not only for Launceston, Bass and the whole of Northern Tasmania but for the entirety of Tasmania. This was the first time that the federal cabinet, led by the Prime Minister, had met in Launceston. As the Prime Minister so rightly pointed out, cabinet is an old institution. Launceston is one of the country’s oldest cities, and yet this was the first time the two had come together.

There were many issues raised at what was a wonderful community meeting. Among them were the pulp mill, water, population and sustainability. What was also in evidence was that there is an enormous amount of concern about the global banking and finance systems. Coupled with that are apprehension and anxiety about the individual financial pressures under which families, workers, seniors and pensioners are struggling. These were concerns which, thanks to this government’s community cabinet program, the people of Bass were able to articulate directly to the Prime Minister and senior government members. And articulate they did, with passion and vehemence. Many people in my community took the opportunity afforded to them for one-on-one meetings with the Prime Minister and other ministers. One of those who met with the Prime Minister was a pensioner. I know that she did not mince her words, as she has not done that with me throughout the year. This lady has spoken with me often of the pressures on pensioners, of how financial pressures have taken their toll on her and of how the rising costs of living are making things harder and harder. I can assure her and the thousands of others like her in Bass and across the country that relief is on the way. These one-off payments which form an integral part of the government’s Economic Security Strategy will be paid on the eighth of next month.

But allow me to put these in context if you will. This is not a political bribe. We are not perpetuating the practices of the previous government. This is not about buying off a section of the community we need to help us win an election. We are not the Howard government—that is quite obvious. This is about providing much needed, much deserved assistance. These payments are down payments on long-term pension reform. They are designed to provide that much needed assistance and support in the nine months between now and when long-term reforms are introduced from the beginning of the next financial year.

Indulge me as I highlight for the House the actions taken by the Rudd government in this area since the election less than 12 months ago. Among the first things we did was acknowledge the hardships under which many pensioners, seniors and carers are struggling. Instead of turning a blind eye until election time, like the previous government did, we acted. The Minister for Families, Housing, Community Services and Indigenous Affairs has asked the Secretary of that department, Dr Jeff Harmer, to complete an investigation into measures to strengthen the financial security of seniors, carers and people with disabilities, including a review of the age pension, carer payment and disability support pension. This review is part of the government’s wider inquiry into Australia’s future tax system, chaired by the Secretary to the Treasury, Dr Ken Henry. We acted. While the opposition was out and about crying crocodile tears over the plight of some pensioners—just some—we were acting.

I have spoken at length in this House of the struggles of pensioners. I have spoken also in disgust at the political opportunism of those opposite. I do so again here today. We will not pit pensioner groups against each other. We will not exclude two million carers, people with a disability and married pensioner couples from this payment. Those opposite would have had almost 15,000 pensioner couples, carers and people with disabilities in Northern Tasmania denied financial assistance. This demonstrates a few things. It shows just how out of touch those opposite have become. It shows the depths they will plunder in a desperate attempt to gain political advantage. You know what? Not us. As the Prime Minister articulated during community cabinet in Launceston, and as he has done consistently throughout the global financial crisis, as a government we have taken decisive, early action—not because it is politically expedient to do so but rather because it is the right thing for the health of our nation’s economy. It is the right thing also for seniors, carers, people with disabilities, pensioners and families.

These payments recognise the additional costs of single pensioners relative to couples. For the first time, they are being made to those on the disability support pension. It is little wonder that the government’s Economic Security Strategy has been welcomed by the National Seniors Association, Carers Australia, the Combined Pensioners and Superannuants Association, the Fair Go for Pensioners Coalition and National Disability Services, to name but a few. More than that, however, has been the response that I have received in my electorate. No-one is suggesting for a second that this is the end of the line for assistance for pensioners and the like. As I said, and as others have said, these payments are down payments while the review into pensions is undertaken. Having said that, the response which I have received has been positive. Many people in Bass appreciate that as a government we need to act responsibly and with due process, and that is what we are doing. They appreciate also that, when the opportunity presented itself to assist those who needed it most, we took it.

As I mentioned earlier, this help will reach almost 30,000 people in my electorate of Bass. More than 9,200 families who receive family tax benefit A will, as a result of this legislation, receive $1,000 for each dependent child who attracts family tax benefit part A. This too is about providing targeted and much needed relief to those families struggling with rising costs. I say it often in this House but it remains true today. I am proud of this legislation and proud to be part of a government which has responded quickly and decisively to a range of pressing needs. There is a global financial crisis and the government has responded to assist Australia’s economy. There are rising costs of living and these are placing pressure and strain on the most vulnerable in our community, and the government has responded.

Pensioners, seniors, carers and people with disabilities are struggling—and I will say it once again: the government has responded with $10.4 billion in the Economic Security Strategy, which also includes other measures. We are responding to the challenge of housing affordability and stimulating residential construction activity through the first home owner boost, which will increase grants to first home buyers purchasing an established home to $14,000 and to those purchasing a newly constructed home to $21,000. This will apply for all contracts entered into by 30 June 2009. We are helping Australians secure jobs and investing in our people by creating an additional 56,000 new training places this financial year, to strengthen the Australian economy in these difficult global times. We are committed to supporting and training job seekers to ensure all those who can benefit from extra help are able to access these places.

The Rudd government will fast-track its nation-building agenda to help shield Australians from the global financial crisis. We are accelerating the implementation of our three nation-building funds and bringing forward interim infrastructure reports to December 2008 in the key areas of education and research, health and hospitals, and transport and communications so that work can commence next year. Across the board the government has responded, and with this legislation in particular it is providing immediate financial support during the global financial crisis. With that, I commend the Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 and related bills to the House.

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