Dana Wortley (SA, Australian Labor Party) Share this | Hansard source

Those opposite are in an embarrassing position, and for them to stand up today and say the things they have said in this chamber is, to say the least, embarrassing. Those opposite had nearly 12 years in which to fix the pension system—to address its shortcomings and to assist those most in need—but they failed to do so. Last year, the Howard cabinet actually voted against raising the base rate of the pension, and today, when a positive move has been made, we have those opposite, instead of standing up in support, standing up and having just another political go.

The global financial crisis is affecting financial markets right around the world, including in Australia, and those opposite know it. In the past two weeks it has entered a new and even more serious phase. The Rudd Labor government is a forward-looking government, which is anticipating events and putting in place measures to deal with them. We know that working families, pensioners, carers and small-business operators right around Australia—people who have small deposits in banks or other financial institutions, including building societies and credit unions—were becoming increasingly anxious because of what they were seeing on television in their lounge rooms each evening and what they were being confronted with in the newspapers on a daily basis.

We know that the stability of the banks is of fundamental importance to all Australian households, to small businesses and to pensioners. We understand that Australia and the Australian banking system is affected by global events. And, in recent days, global financial conditions have deteriorated markedly. As a result, governments around the world are providing unprecedented support to their financial institutions to enable them to recapitalise and gain access to wholesale borrowing. So what did our government do? The government took advice from the regulators. Why? Because they are in the best position to tell the government the true state of the wellbeing of our banks. What did the opposition do when they were in government—despite HIH, and following the recommendations of the Australian financial regulator? They did nothing. They took no action. They sat back on their hands. It was left to the incoming government to act. So, acting on the advice of the regulators, the government made the decision to act to provide the same guarantees for our banks and other financial institutions.

Today, the government announced further measures to assist in dealing with the global financial crisis’s impact on Australia, with the announcement of its $10.4 billion Economic Security Strategy. The government is delivering a down payment to pensioners, carers and people with a disability, to provide them with immediate financial help in the nine-month lead-up to the comprehensive reform of the pension system. Yes—that is still going ahead. This will be available through a lump sum payment of $1,400 to singles, $2,100 to couples and $1,000 to recipients of the carers allowance for each eligible person being cared for, to be paid from 8 December.

Let me just refresh your memory. The opposition leader did not believe that carers or people on a disability pension or pensioner couples were in need of assistance. He, along with his Liberal and National Party colleagues, did not consider these pensioners worthy of additional financial help. But I will return to the Economic Security Strategy announced today.

In recognition of the difficult economic circumstances that many Commonwealth seniors card holders face, we are also providing them with a lump sum payment of $1,400 to singles and $2,100 to couples. We are providing security for working families into the future and we are providing relief right now, when families need it. This relief will be delivered to families who receive family tax benefit A, through a one-off payment of $1,000 for each eligible child in their care, which is also to be paid from 8 December.

We are also responding to the challenge of housing affordability, and stimulating residential construction activity, through the first home owners grant boost, which will increase grants up to $14,000 for first home buyers purchasing an established home, and, for those purchasing a newly constructed home, up to $21,000. (Time expired)