Carol Brown (Tasmania, Australian Labor Party, Shadow Minister for Disability and Carers) Share this | Hansard source

In Senator Stoker's own words: let's get serious. After that contribution, I'm sure that anyone listening to this debate would be completely mystified as to what the actual bill before us sets out to do. The Productivity Commission Amendment (Addressing Inequality Bill) 2017 asks that the Productivity Commission takes into account, in the exercise of its functions, regularly reporting on the extent of inequality in Australia. That's what it seeks to do. It's not about the politics of envy. It's not about, as Senator Stoker said in her contribution, pulling people down. It's about the Productivity Commission looking at, in their work, inequality. That's what it does.

Senator Stoker asks the Labor Party to get behind the government's proposals. Well, we didn't back the cash handouts to the big four banks, and we're not going to. We didn't back the billions of dollars cut from education, and we're not going to. We didn't back the hundreds of millions of dollars taken out of the health system, and we're not going to. So I would just like to say that I'm very proud to speak in support of this bill, because it attempts to raise awareness of one of the defining issues of the life of this parliament. Senator Stoker, in her contribution, also said that the issue around inequality was one that only the Chifley centre has been raising. What that tells me is that Senator Stoker certainly has not been listening, which means that she's like the rest of the Liberal senators and members—they're just not listening.

I want to explain to those listening exactly what this bill seeks to do. The Productivity Commission is more than just an advisory body. Its work sets out the national agenda and it provides a basis for substantial change. The Productivity Commission is not required to take inequality into account, although its enabling legislation currently requires it to have regard to a wide variety of factors, such as the need to promote regional development or to ensure development is ecologically sustainable, but there is no reference to inequality.

This bill raises the issue of inequality and requests that the Productivity Commission takes it into consideration in its work. Unfortunately, this bill is needed because inequality has been increasing in Australia. Perhaps the only silver lining to this growing problem is that inequality has now reached the point where this parliament can no longer ignore it. In fact, almost 75 per cent of Australians agree with the statement: 'Differences in income are too high.' Australians want to see something done about this. Behind the land of the fair go, it's only natural that Australians expect a certain level of equality. It's a part of our way of life. We believe that Australia shouldn't be a land of extremes; it should be a land where anyone has a chance of achieving happiness and prosperity. But that's the insidious thing about inequality: it erodes our opportunities and restricts our chances of achieving happiness. It undermines the very economic system that we seek to build in our free society.

That's why even conservative economic institutions such as the IMF and the OECD are all acknowledging the negative impact that inequality is having on economic growth, and they're acknowledging the threat that it poses to our standard of living. In a fiscal monetary report released last year, the IMF said that Australia has experienced amongst the highest growth in income inequality in the world over the past 30 years. Not only this, but the Director of Fiscal Affairs, Vitor Gaspar, went further and warned, 'Income inequality tends to be highly correlated with wealth inequality, inequality of opportunity and gender inequality.' Inequality of opportunity and gender inequality—at precisely the time when Australia is working to build a fairer, more open society that encourages equality across genders and across socioeconomic groups. Disparities in wealth and income threaten to harm the very gains that we are making in these areas.

Doubtless, that's why those opposite are against this bill. It's also why I commend Senator McAllister for bringing this bill before the chamber. It's also why I commend Senator McAllister for bringing this bill before the chamber. It shows a true appreciation for the nature of this issue and the tools that we have to address it. It shows an understanding of the need to act now and to use the resources that we have before are us to do what we can to fight against inequality.

As one of our leading economic analysis agencies, the Productivity Commission is an agency that performs a critical role looking at a range of different issues and the impact that these can have on industry and productivity more broadly. Indeed, in my own portfolio of disability and carers and the portfolio of the shadow cabinet minister, Linda Burney, it was the Productivity Commission that laid much of the economic foundation for the NDIS. It's the same Productivity Commission that has looked at markets and resourcing in this sector. It's this organisation that made a case for adequately resourcing the Public Service, rather than relying upon outdated principles such as the arbitrary staffing cap on the Public Service. It appreciates that a well-resourced public sector delivers highly effective public services and that it's public services that is can create a more productive and cohesive society. It's these public services that ensure that no Australian is left behind, that every Australian can rely on the basic social safety nets, so if they lose their job or they need access to essential medicines or live with disabilities, that we will be a society that will ensure that we have an adequate safety net.

That's why much of the Productivity Commission's work already looks at matters that counteract inequality, and that's why placing inequality at the core of what the commission considers is not only important but also a logical and achievable next step in the work of the commission. In last year's five-year productivity review, the commission called for reforms that promote 'the non-market economy and rebuilding confidence in public institutions'. The report argued that, and I quote:

… limiting inequality extends beyond its intrinsic value to the desirability of avoiding too great a dispersion in incomes, given evidence that this can, in its own right, adversely affect productivity growth. Public support is also more likely for reforms that offer benefits to the bulk of people.

It's clear that the commission already appreciates the importance of inequality and of acting now to limit its impact on society.

It's clear that, unlike the claims of those opposite, this bill would not lead to the imposition of an onerous burden of one of our leading economic institutions. Instead it would simply ensure that inequality would be a cross-cutting consideration for future analysis done by the commission. It would ensure that future commission reports would not just consider inequality but also propose real actions that current and future governments can take to address this problem. As the report noted:

Public support is also more likely for reforms that offer benefits to the bulk of people.

This bill would help governments develop a reform agenda that is not only sensible and important but also well supported in the public. With more than 15 per cent of Australians living in the lowest income quintile with three or more chronic illnesses compared to only six per cent of those living in the highest quintile, Australians understand the pervasive effects of inequality and they expect political leaders to address this.

Certainly, economic growth is important. It's a necessary but not sufficient step for addressing some of the challenges that we face. As Australia continues into its 27th year of uninterrupted growth, it unfortunately continues a 75-year high for inequality as wealth at the top grows more rapidly elsewhere in society. It's not enough to simply note that this is a problem. It's not enough even to write reports that acknowledge and assess the scale of the challenge. But, without beginning, at least at this point, how will governments know where to begin? This bill grants the commission licence to delve deeply into the matters of inequality. If we look at the topics assessed currently, we see that so many of these are challenges that are only exacerbated by inequality.

Currently, the commission has inquiries being undertaken across the fields of disability, superannuation, veterans affairs and transport. In literally every single one of these areas, inequality ensures that challenges faced by Australians are particularly difficult for the less advantaged Australians. Those opposite would argue that this is no problem—that, to counter this, all we need to do is focus on jobs and on economic growth. But that's to miss the point entirely. Without addressing inequality, one cannot solely focus on jobs or on growth. We've seen how, despite 27 years of economic growth, incomes for those at the bottom have almost entirely stagnated, with earnings for the top 10 per cent rising nearly four times faster than for those in the bottom 10 per cent. That's why ignoring inequality isn't just a bad idea—it's self-defeating.

To try and create good jobs and create equality of opportunity means necessarily working to fix the issue of inequality. Labor has long been a party that calls for exactly the kinds of policies that work to close the gap on inequality. I'm proud to be part of a party that brought Australia Medicare and the NDIS and that supports universal education. I'm proud that Labor members and senators have already been advocating for policies that fight against inequality for many years. That's why this bill is the continuation of a long and proud policy tradition.

This bill seeks to extend the research base and the economic foundations of much of what we do. It seeks to ensure that our public institutions place this topic at the centre of their policy development and work towards a more equal Australia. This bill acknowledges that, without fighting inequality, much of what we seek to do in this parliament is made more difficult. It acknowledges the critical work of our public institutions and seeks to build on the work of the Productivity Commission to ensure that its work remains relevant to the evolving challenges that we face in the 21st century. I commend this bill to the chamber, and I'm proud to be able to vote in support of this bill.