Carol Brown (Tasmania, Australian Labor Party) Share this | Hansard source

The incorporated speech read as follows—

I rise in support of the Social Security and Other Legislation Amendment (Economic Security Strategy) Bill 2008 and related bills—the legislation that delivers on the Government’s $10.4 Billion Economic Security Strategy announced by the Prime Minister and the Treasurer on the 14 October this year.

The $10.4 Billion package is designed to strengthen the national economy, stimulate ongoing investment, and consumer confidence and support Australian families in light of the recent global economic slowdown.

Back in May this year, the Government delivered what has been widely described as an economically responsible budget, boasting a $21 billion surplus, which the Prime Minster at the time stated would act as a buffer to secure the Nation in economically hard times.

Unforeseeably since that time, unfortunately those economic hard times have arisen.

Indeed in what is a little over six months since the Government handed down the budget in May, Australia now finds itself in serious and uncertain economic times, confronted by a global financial crisis which is being billed as the worst since the Great Depression.

While the Australian economy remains better placed that most to endure the current downturn, it has become increasingly apparent that we are by no means immune from the global financial crisis.

Indeed, few could have predicted the scale and ferocity of what has occurred in the six short months since the Government handed down the budget in May.

The decline in global markets has generated a renewed need for Government leadership both on a national and international level—as people look to their Government for surety and certainty in what are undoubtedly tough financial times.

Indeed, several nations including Australia, have answered that call by announcing initiatives to secure the economy and protect the interests of people—both at home and abroad.

Since the news of the crisis first hit, the Government has announced a number of measures, specifically designed to stabilise the Australian economy and secure the nation’s future in the immediate as well as long term.

Indeed the Prime Minster has said that any action in light of the global economic crisis must take place on two fronts—securing the stability of the Australian financial markets and actions which underpin growth in the Australian economy.

The Government has committed to guaranteeing all depositors and all deposits on term funding in all Australian banks, building societies and credit unions, for the next three years.

Importantly it has also announced a number of other significant investment initiatives designed to stimulate productivity and ensure the health of the national economy now and in the long term.

Just briefly these include:

• The announcement on the 10th November by the Government of a 13 year $6.2 billion investment in a New Car Plan for a Greener Future and;
• More recently the announcement of the $466 million to go to local councils and shires across the nation.

These recent announcements come on top of the Governments budget commitment to pursuing a nation building agenda, inclusive of $26 billion in three new Building Australia Funds which include:

• The Building Australia Fund for transport and communications infrastructure,
• The Education Investment Fund for education and infrastructure; and;
• The Health and Hospitals fund for improved health infrastructure.

These payments are intended to provide additional support in the months between now and long-term reforms are introduced in the next financial year.

All of these measures combined with those contained in the bills currently before us add up to the actions of a Government which is committed and more than capable of steering Australia through these tough economic times.

The Government’s $10.4 billion economic security strategy to be enacted by these bills contains five key elements, each designed to stimulate the economy and to provide security and support Australian households, particularly those that have been doing it tough.

The bills deliver immediate financial relief to pensioners, seniors, carers, people with a disability, and families with dependent children in the form of a direct payment which are due to begin in a fortnights time—the week beginning the 8th December.

These measures will benefit over 5.2 million Australian families who will receive assistance in the form of a one-off payment.

This stands in stark contrast to the short-sighted and limited proposal made previously by the opposition, which would have ignored over 4.3 million of these people.

This includes a $4.8 billion worth of direct and immediate payments to pensioners and older Australians. Under the measures contained in this bill all Australians in receipt of the aged pension, disability support pension, carer payment, wife pension, widow B pension, service pension or income support supplement, or who had a Commonwealth senior’s health card as of the 14 October will receive a payment of $1,400 for singles or $2,100 couples.

This payment represents an intermediate down payment to provide additional support in the nine months between now and the long term reforms due to be introduced at the beginning of the next financial year.

This measure has received positive responses from the National Seniors Association, Carers Australia, the combined Pensioners and Superannuates Association and National Disability Services amongst others.

These measures also contain $3.9 billion worth of financial support payments to low to middle income families. It is estimated that this will provide direct assistance to around 2 million Australian families and 3.9 million Australian children.

This immediate payment once again comes on top of a number of other measures designed to provide some relief to the families during the May budget including tax cuts for working families and low income earners, the 50% childcare rebate and the education tax refund.

These payments will no doubt go some way to assisting families, as budgets tighten and with Christmas fast approaching.

Through these payments to families and pensioners the Government has sought to provide some immediate financial support to assist them through the current economic downturn.

However. the strategy also includes a number of other initiatives aimed at assisting Australians in the longer term and stimulating ongoing productivity, investment and economic growth.

As a testament to this the Government announced $1.5 billion worth of additional assistance for first home buyers. Under this initiative first home buyers will be eligible for grants up to $21,000 to assist them to purchase their first home.

It is estimated that more than 150,000 first home buyers around the country will directly benefit from scheme which will see those first home buyers who purchase established homes receive a grant of $14,000—double the $7,000 previously available.

Further, first home buyers who purchase a newly constructed home will be eligible for a $21,000 grant—gaining an extra $14,000 on what was previously available.

This measure accompanied with previously announced housing initiatives such as the National Rental Affordability Scheme have received praise from the industry, as they promise not only to provide first home buyers and renters with viable housing solutions, they also offer an obvious boost to the industry, and stimulate ongoing activity in the area in the face of the wider economic down turn.

Importantly the strategy also includes a boost to training, with the Government announcing as part of the package that it will invest a further $187 million to create an additional 56,000 new training places in 2008-09.

This funding injection will:

• Effectively double the productivity places program from 57,000 to 113,000 in 2008-09 and;
• Take the government total investment in training places since April to more than $400 million.

This is a welcome and necessary investment in human capital and infrastructure, and will offer a boast in an area significantly underfunded and ignored by the previous government.

Indeed under the previous Government it was estimated that over 325,000 people were actually turned away from TAFE because of their chronic underfunding of training places. This led the Australian Industry Group to estimate just last year that we require an additional 270,000 more trained people to fill the current skills shortage in Australia.

The Government recognises that if the economy is to remain stable now and in the long term, more needs to be done to invest in human and essential infrastructure.

That is why the final feature of the government strategy is an undertaking by the government to fast-track its national building agenda to help fortify the nation from the global economic crisis.

As a result the Government will accelerate the implementation of each of its three previously mentioned infrastructure funds, so that work on key projects under the funds can begin next year.

In all the Government’s economic security strategy contained in this bill represents decisive action and an investment in the nation’s immediate as well as long term future.

It represents a commitment by the Government to assist and support those Australians most likely to be suffering as a result of the global economic downturn.

It represents a commitment to do what it can to boost consumer confidence and encourage continued investment.

It also represents a genuine commitment to industry and the private sector that it is now dealing with a Government that is willing to take a leadership role and is determined to pursue a nation-building agenda to secure the nation’s future for the long term.

Therefore the measures contained in this bill represent a $10.4 billion down payment to Australian pensioners and their families, and industry and the private sector in light of the global economic crisis.

I, along with I am sure many other Australians, welcome the package and commend it to the Senate.