Judith Adams (WA, Liberal Party) Share this | Hansard source

I too rise to speak on the answers given by Senator Wong at question time today. I will just quote the Treasurer; in July he said:

… we will do everything as we go forward to ensure we minimise those cost-of-living pressures …

In front of me today I have two news articles that have been published since the last rate rise on Melbourne Cup Day: ‘Rate rise compounds woes for cash strapped families’ and ‘Average families struggle to meet costs’.

The Treasurer has said that they will help these families. What evidence do we have? We keep being told that, yes, the budget will come back into surplus in three years time. But the evidence is just not there. Unfortunately, we have this looming dark shadow of the carbon tax as well—the tax that before the election the Prime Minister said would not happen. Now that is coming as well, and that carbon tax will actually compound on these poor families who are struggling to meet the above average costs.

As an indication of how much it costs, because of higher living costs a family on a single average income of $75,000 a year just cannot exist and meet their living costs for basic necessities. There is research that comes from the Weekend West showing that a family of four would need a full-time and a part-time average income to cover the weekly $1,175 cost of necessities. This includes payments for an average-size mortgage, insurances, food, medical cover, car costs, rates and utilities.

These families really are battling and, coming from a rural background—especially in Western Australia where we have a very limited grain harvest and people who are desperate to try to pay their interest rates—these sorts of costs are unfortunately absolutely out of their depth. The frightening part is that a number of people have to use their credit cards to pay for food. They have maxed out their credit card and they are paying for basic day-to-day things such as food, fuel and transport using their credit card, and are not able to clear the expenses they have already made.

Another indicator which applies particularly to contractors and tradespeople is having no financial contingency plan for when there is no income because of an illness or accident. Small businesses in these farming communities are really battling. They are not getting paid, they have to do a seven-day payment to the people they are buying things from and it is all becoming very difficult.

I return to the carbon tax: as far as electricity costs are concerned, where will all of this end? We hear stories about pensioners who are petrified to have their lights on and their heating on, and who are lying in bed covered in blankets trying to keep themselves warm. It really does worry me just how we are going to deal with that issue when it comes up. For the number of social groups who are trying to help these people, the unexpected rate rise last week has generated a huge surge in activity for financial counsellors and the people who supply families with groceries and also help with their repayments when they are not able to make those. Counsellors have a huge job trying to help with debt management arrangements. It is the last resort when people have to go to these people and say, ‘Look, I just can’t cope’. Unfortunately, often it is too late and their possessions are repossessed and their houses are as well.

We really have a problem and I do ask where this government are going and what they are showing to say that they have this in hand, because to date we have not seen any evidence whatsoever of this.