Keith Pitt (Hinkler, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Families and Social Services. Will the minister explain why the government believes in a fair and sustainable welfare system? What is the government doing to support families and act on that belief in my electorate of Hinkler?

Paul Fletcher (Bradfield, Liberal Party, Minister for Families and Social Services) Share this | Link to this | Hansard source

I do thank the member for Hinkler who's been a very strong advocate for a fair and sustainable welfare system, including through his advocacy—his successful advocacy—for a trial of the cashless debit card in Bundaberg and Hervey Bay, in his electorate, something which will commence in late January next year.

On this side of the House, we believe in a sustainable welfare system. If as an Australian you're entitled to welfare then you have a right to expect that when you turn up the government has the capacity to make the promised payment. That means the system needs to be sustainable. Under the previous government, expenditure on social security and welfare was growing at 6.2 per cent a year, nearly twice the rate at which tax revenue was growing. That is unsustainable. Under this government, social security and welfare spending at 2.9 per cent a year is lower than the rate at which tax revenue is growing. That is sustainable. That is an example of our strong economic management, meaning that we can fund the services that Australians rely upon. We believe in a fair welfare system. If you have a go, you'll get a go. That's why we're pushing ahead with the cashless debit card.

Indeed, last week, the member for Hinkler and I had the chance to have discussions about the cashless debit card in Bundaberg. A very impressive young woman I met at a service called IMPACT is undergoing some training at the moment, and she'll be moving into the workforce. She made the observation to me that when people have an addiction, 'Drugs and other habits often come first, rather than the kids.' That is exactly why we need to make sure that we are providing 80 per cent of welfare onto the cashless debit card. Eighty per cent of your benefit goes onto the card. It can't be used to purchase alcohol, drugs or gambling. And the results are very significant.

What, then, is Labor's position on this successful policy? When the member for Jagajaga was the minister, she consistently supported the expansion of income management to seven sites across five states. The former Labor member for Hinkler supports the rollout of the cashless debit card to the electorate, but, sadly, politics has got in the way. The current Labor candidate for Hinkler is running a petition against the cashless debit card. Labor voted against the cashless debit card being expanded to Hinkler, putting politics ahead of a proven policy measure that helps Australians on welfare to stabilise their lives and get into the workforce. We will stand up for the values of mainstream Australians, not the inner-city Green left that Labor seems far too responsive to.