Tony Abbott (Warringah, Liberal Party, Shadow Minister for Families, Community Services, Indigenous Affairs and the Voluntary Sector) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister. Under the government’s ‘child care watch’ initiative, which she announced last night on Lateline, for how long will childcare operators be forced to lock in prices in advance? Will they be fined for reducing prices?

Opposition Members:

Opposition members interjecting—

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Was that funny? Was it?

Bruce Billson (Dunkley, Liberal Party, Shadow Minister for Broadband, Communication and the Digital Economy) Share this | Link to this | Hansard source

You have to have a sense of humour, Lindsay.

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

I thank the member for Warringah for his question, which I did not think was a particularly amusing one.

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The question has been asked.

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

Obviously the question of childcare fees is one that impinges on working families who need to pay for child care. Maybe my memory fails me, but if there was some amazingly effective Howard government initiative to deal with childcare fee increases then I do not seem to recall it.

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The question has been asked.

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

I do not recall it. So for 12 years—the member for Warringah being in the cabinet for most of that period—nothing effective was done on childcare fee increases. In contrast, what is this government delivering?

Wilson Tuckey (O'Connor, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, on a point of order: on the question of relevance, this is a question asked on behalf of the people, not the opposition. Young parents are entitled—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for O’Connor will resume his seat.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

Mr Albanese interjecting

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

The Leader of the House reminds me that I have been asked the question by Mr ‘People Skills’, but I did not think we had promoted him to being the single voice of the people! But, in any event, what this government is doing to deal with childcare fee increases is to increase—

Honourable Members:

Honourable members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! Those on my left will cease interjecting. Those on my right will collectively ignore the interjectors.

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

Presumably lunch started at 12 noon and finished at five minutes to two!

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Deputy Prime Minister will get to the point.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Hockey interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for North Sydney will resume his seat. The Deputy Prime Minister will get back to answering the question.

Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Link to this | Hansard source

I am endeavouring to answer the member’s question. What the government is doing to deal with childcare fee increases is to increase the childcare tax rebate from 30 per cent to 50 per cent on 1 July. This means that families in all income levels with children in approved care will get increased government assistance—that is, the amount that they pay for child care will be reduced. Obviously there have been media reports in the last few days about childcare operators considering fee increases. We need to remind ourselves, of course, that childcare fee increases happen from time to time and that, of course, there are increases in costs in child care. When there are legitimate increases in costs, that is reflected in fees. But, even with some of the percentage figures we have seen named in the media in recent days—and there have been a variety of figures, including figures in the range of two to three per cent, suggested as likely fee increases—with the government’s increased childcare tax rebate working families would still be better off.

What we have indicated to childcare operators is that the government will be watching prices, something the Howard government neglected to do because it was not concerned at all about this issue. We will be watching prices, and we are putting operators on notice that, if any evidence emerges of unfair pricing practices, the government will be ready to use the powers at our disposal to deal with the matter.

We are talking, at this stage, about working with industry to ensure that any price increases are legitimate reflections of increased costs. I would have thought that every member in this House would want to send the same message on behalf of working families to childcare operators: that every member in this House would want to see working families benefit to the maximum extent from the government’s new childcare tax rebate initiatives. All I can conclude from this question—and, most particularly, from the interjections during it—is that members opposite could not care less one way or the other. Well, despite their indifference, the government will be getting on with the job of increasing the childcare tax rebate and ensuring that working families enjoy the benefit of the increased rebate.