Senate debates

Monday, 17 September 2007

Questions without Notice

Cost of Living

2:10 pm

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

My question is to Senator Scullion, the Minister representing the Minister for Families, Community Services and Indigenous Affairs. Is the minister aware that, since the 2004 election, working families now spend 36 per cent more on child care, 18 per cent more on bread, 29 per cent more on fresh fruit and vegetables, 15 per cent more on health care and 28 per cent more on petrol? On top of these cost-of-living increases, aren’t homeowners with a $300,000 mortgage now $457 a month worse off, thanks to nine interest rate rises in a row? How can families plan their budgets when the cost of living just keeps going up? Given that the cost of living for families just keeps going up, can the minister indicate if he supports the Prime Minister’s view that working families have never been better off?

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Community Services) Share this | | Hansard source

It is amazing that the inference of the question we have just heard was that having unemployment rates at 4.3 per cent instead of at 10.9 per cent, as they peaked under Labor, is somehow bad. In real terms I can say that, between when we came to office and June 2007, some 2,184,000 more people have a job. That is 2,184,000 more people who now have a job and can go out and buy a house. They have a job today that they did not have then. I know you in this place will understand this. We are talking about over 10 per cent unemployed. When we came to government there were 45 federal electorates where more than 10 per cent of the people did not have a job. Of course, now there are no federal electorates in which we have 10 per cent of people unemployed. We are very proud of that.

I have to say that the capacity to give people jobs is about not only our past record. Of course, in housing affordability we have a plan for the future. On 26 July 2007 the Australian government announced that we would be inviting expressions of interest from state and territory governments, from the non-government sector and from the private sector for their proposals and their ideas for new and innovative approaches to using the available funding for increasing housing supply. Several proposals have been put forward recently that seek to increase the supply of affordable residential land and housing stock. These are innovative processes that actually engage the organisations we know are going to deliver. We are very interested in examining the proposals as part of our increasing social housing supply request and information processes. The government have consistently called on the state and territory governments to manage the provision of a range of housing options available to Australians and specifically to increase the affordable land and housing available.

Despite almost $1 billion a year being invested with other organisations, principally the state and territory Labor parties, we have managed to go backwards in terms of housing. It is all right for people in this place to look at those who are buying house and at interest rates, but the information I get from those on this side is that people are also concerned about rental issues, and we need to have a comprehensive policy statement that deals with these issues across the board.

In spite of providing $1 billion a year for 10 years—that is, $9.6 billion over 10 years—we do not have a single extra house being provided. The only failure on the part of the government was in trusting state and territory Labor governments. That was our failure. I can tell you, Mr President, that this is not a government that continues to do the same thing while expecting a different outcome. That is why we are looking at alternative policies and engaging in alternative partnership arrangements, to ensure that those Australians who are buying their first homes or who are in the rental market are getting the very best deal they can.

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

Mr President, I ask a supplementary question. How does the minister’s vague, wandering answer help working families who are struggling with huge mortgages and rents and spiralling petrol, childcare and grocery prices? Is the minister really so out of touch that he agrees with the Prime Minister, who says that working families have never been so well off?

Photo of Nigel ScullionNigel Scullion (NT, Country Liberal Party, Minister for Community Services) Share this | | Hansard source

Had I attempted to answer the childcare, vegetables, affordability and interest rate questions, all contained in the one question, I do not think it would have been as useful as sticking to the central point of the question. The fundamental point relates to the capacity of individuals to continue to pay off their mortgages. Perhaps what we should look at is what the Reserve Bank has said. It has stated that about a quarter of owner-occupiers are more than a year ahead in their schedule of payments. That is a fact. I am not making any subjective point about that or about how Australians are doing. I acknowledge that it is difficult from time to time across many demographics, as historically it has been when you are buying your first home. That is the whole point about buying your first home: it can be difficult. But it is tremendous that the Reserve Bank factually estimates that fewer than one per cent of all home borrower households are more than 90 days behind in their repayments. I think that is a record of which to be proud. (Time expired)