Senate debates

Thursday, 4 February 2010

Cost of Living Pressures

4:46 pm

Photo of Annette HurleyAnnette Hurley (SA, Australian Labor Party) Share this | Hansard source

The Liberal coalition might have introduced the utilities allowance, but they left it at a level that meant that increased costs—which is what we are talking about now—left pensioners way behind. We have increased it from $170 to $500 a year. Did the Howard government increase that utilities allowance? No. We have increased the telephone allowance from $88 to $132 a year. We have indexed the pension to the pensioners’ cost of living, so pensioners are now much better off. An important cohort of our population is much better off. You ask them about the cost of living and see what the response is.

On the income side, Senator Kroger mentioned housing. This government has taken action on housing affordability. The National Rental Affordability Scheme offers $6,500 per dwelling, plus at least $2,168 from the states, to build affordable housing and rent it out at 20 per cent below market rate. The Housing Affordability Fund is a five-year, $512 million investment to help address barriers to new housing development by streamlining planning and approval processes and reducing infrastructure costs. Also, the First Home Saver Accounts have proved very popular and very useful for new homeowners.

The government has delivered on its election promises and has provided for both aspects of the cost of living. It has increased income and benefits and it has taken steps to reduce the other side of it, which is expenditure. On expenditure, I want to talk a little about what the government has done on competition to help drive down grocery prices across the sector. The government is committed to promoting competition in the grocery and retailing industry, which I think everyone recognises is the most effective means of exerting downward pressure on grocery prices. In the past, both state and federal barriers have impeded the entry of competitors into local and national grocery markets. The government is currently working on policy measures to introduce more competition by lowering the barriers to entry and expansion in both retailing and wholesaling for independent supermarkets and potential new entrants.

The ACCC has reached an agreement with Coles and Woolworths to end restrictive provisions in leases. I welcome the agreement between the ACCC and Coles and Woolworths to bring in such measures. Active restrictive leases will cease immediately in 602 out of 750 cases. The remaining 20 per cent will be phased out within five years. Both companies have also agreed that they will not include restrictive provisions in any new supermarket leases. This has been a long-running issue. It is not one that is out there on the front page of the paper, but it has been a key reason for reduced competition. We have finally reached agreement with the two major retailers to ensure that it is phased out. What is the opposition policy on that? I have not heard one at all.

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