Belinda Neal (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Families, Housing, Community Services and Indigenous Affairs. Will the minister outline to the House the need for a strong budget surplus to put downward pressure on inflation and interest rates? What are the consequences for the minister’s portfolio if the budget measures are not passed by 1 July 2008?

Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Link to this | Hansard source

I thank the member for Robertson for her question and her very real concern for families and older Australians, particularly those living on the Central Coast of New South Wales, who she knows are really facing significant pressure as a result of inflation and of course rising interest rates. We know that inflation is the No. 1 enemy of Australian families and certainly other Australians who are doing it tough: pensioners, carers and others who are on fixed incomes. They are finding it very difficult to make ends meet with rising prices. So we know that the responsibility of the budget is to get this inflation issue under control.

Just this morning the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (2008 Budget and Other Measures) Bill 2008 went through this House. What we are concerned about is that it is not held up in the Senate by the opposition, because this bill contains an important measure to help rein in spending—that is, the changes to family tax benefit B. If the Liberal and National parties in the Senate decide to delay this legislation until September, it is estimated that it could cost around $28 million. This would be a very substantial price tag for delay in the Senate. We on this side of the House have worked very hard to deliver a $22 billion surplus, primarily to help families and those who are finding it hard to make ends meet, to fight inflation. It is all about making sure we can fight inflation and keep downward pressure on interest rates. If the opposition does decide to block any of these measures in the Senate, it will have a direct and immediate impact on the surplus.

We have to be, and we on this side of the parliament intend to be, both economically and socially responsible. If the opposition pursue blocking this measure in the Senate, it will have at least a $28 million impact on the surplus. That will only hurt families, and other Australians who are doing it tough, by making our fight against inflation even more difficult.