Jon Sullivan (Longman, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Families, Housing, Community Services and Indigenous Affairs. How have the direct payments to Australian pensioners and families helped cushion Australia’s economy from the impact of the global recession?

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 Longman for his question and, in particular, for the advocacy that he shows for the pensioners and families in his electorate. He certainly does understand the benefit that has gone to more than 43,700 pensioners and families through the payments that were made as part of the economic stimulus strategy back in December and the more than 17,000 payments that were made as part of the Nation Building and Jobs Plan in March.

Australia’s pensioners, carers, veterans, people on the disability support pension and families have played a very important role in helping Australia during these very difficult economic times. The latest economic data does tell us that these direct cash payments have helped to cushion the Australian economy from the worst impacts of the global recession.

In December the payments went not only to all of the pensioners, carers and families in Longman but to people in other parts of Australia, four million pensioners and around two million families. Then in March the stimulus payments went to around two million families. We certainly know that both pensioners and families did their bit to help people in the retail sector and in other parts of the economy.

I have had many letters from and discussions with people about what they did with their stimulus payments. Many pensioners indicated that they were able to visit their families, particularly for Christmas. They were able to visit them interstate and I know that has helped somewhat with the local tourism industry. There were some wonderful pensioners that I met in Parramatta. One lady told me that she employed some local tradies to clean up her garden, fix her fence and do some landscaping. Plenty of other families have indicated to me that they spent the money on whitegoods, a washing machine or a drier, and it was particularly the case that I had many pensioners telling me that they were able to afford extra presents for the grandkids before Christmas.

We are now seeing that flow through in the latest information from the Bureau of Statistics. That is telling us that between last November and June this year retail turnover has in fact increased by 5.2 per cent. While we are seeing our retail turnover increase by this substantial level in comparison with similar countries, many other advanced economies have seen their retail turnover fall over the same period. It does demonstrate to us that these direct cash payments have helped. They were timely as we have been told by the International Monetary Fund, but we do know that we have a long way to go. That is why it is very important that the next stage of our stimulus payments are being put into place and that is important for those low-income households who are now benefiting from the significant investment that we are making in social housing. It is important for the low-income families but it is also very significant for the building and construction sector.