Don Randall (Canning, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Minister for Employment and Workplace Relations. Would the minister update the House on the forecasts for likely growth in wages and pensions in Australia?

Kevin Andrews (Menzies, Liberal Party, Minister Assisting the Prime Minister for the Public Service) Share this | Link to this | Hansard source

I thank the member for Canning for his question. I can inform him and the House that real wages in Australia under the Howard government have grown by some 15.6 per cent—

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

15.6 per cent!

Kevin Andrews (Menzies, Liberal Party, Minister Assisting the Prime Minister for the Public Service) Share this | Link to this | Hansard source

15.6 per cent, Prime Minister, which compares with only 1.2 per cent when the Labor Party was in government—15.6 per cent compared to a miserly 1.2 per cent. This government, for the first time, has indexed pensions, including the old age pension and the sole parent pension, to male total average weekly earnings, so as real wages in Australia have increased so too have pensions.

The member for Canning asked me a question about whether I was aware of any forecasts for growth in wages and pensions. In this context, I note a letter which was written by the Leader of the Opposition to pensioners in his electorate of Brand. It is a letter, written in November 2005, in which the Leader of the Opposition said, ‘The Howard government’s industrial relations changes will lead to lower increases in the minimum wage which will in turn bring down the male total average weekly earnings, thereby directly hitting the hip pockets of pensioners.’

Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Yes.

Kevin Andrews (Menzies, Liberal Party, Minister Assisting the Prime Minister for the Public Service) Share this | Link to this | Hansard source

He says yes. This is the letter which the Leader of the Opposition wrote to his pensioner constituents last year and which he confirms here in question time today. As I said at the time, this was just a scare tactic from Mr Beazley, the Leader of the Opposition, and the Australian Labor Party. I came across another forecast recently about wages and pensions in Australia. It was one that, unlike the Leader of the Opposition’s letter, does rely on some economic modelling and that modelling is very interesting. What this forecast shows is that the wages growth, which is predicted in terms of weekly earnings over the next three years, for 2006-07 is 4.7 per cent; for 2007-08, 4.7 per cent; and for 2008-09, 4.7 per cent. Indeed, this document goes on and says:

In a continued tight labour market with acute skill shortages, average weekly earnings will be dragged upwards ...

Upwards. Then it concludes:

This will drag the sole parent pension up with it.

Who do you think was responsible for this economic modelling? Was it Treasury? No, it was not the Treasury. This is a document released on 6 January this year by none other than the member for Rankin, Dr Emerson. Talk about letting the cat out of the bag. This document was released by a man on the opposition benches who I believe has some economic expertise, at least more than the Leader of the Opposition. This confirms what I have said that the letter sent by the Leader of the Opposition last year was just a scare campaign. That has been proven by what the member for Rankin has said in this document. The thing that will be most important in the future, as it has been in the last 10 years, in terms of wages for ordinary Australians, and indeed pensions for those in receipt of pensions, is a strong economy in this country. Part of continuing a strong economy in this country is to ensure that we have a modern workplace relations system. That is what this government is about and that is what the opposition is objecting to. We will do what is needed to ensure that the Australian economy remains strong. The same cannot be said for the opposition.