Senate debates

Thursday, 26 June 2008

Appropriation (Parliamentary Departments) Bill (No. 1) 2008-2009; Appropriation Bill (No. 1) 2008-2009; Appropriation Bill (No. 2) 2008-2009

Second Reading

Debate resumed.

7:12 pm

Photo of Kerry O'BrienKerry O'Brien (Tasmania, Australian Labor Party) Share this | | Hansard source

I seek leave on behalf of Senators Wortley, McEwen, Crossin and Carol Brown to incorporate contributions on this debate.

Leave granted.

Photo of Dana WortleyDana Wortley (SA, Australian Labor Party) Share this | | Hansard source

The incorporated speech read as follows—

I welcome the opportunity to add my voice to those already heard in this place on Appropriation Bills numbers 1 and 2, and in doing so will also make some observations on Appropriation Bill number 5.

At the foundation of these bills is Labor’s commitment to the electorate.

These bills represent the Government’s determination to deliver on the promises made to the Australian people.

In doing so, the Rudd Labor Government is returning decency and confidence to the democratic process—confidence which was sorely tried by our predecessors.

WorkChoices, education cuts, children overboard, disinvestment in skills training and infrastructure, non-core promises, a complete disregard for climate change and the list goes on.

Unlike the former government that neglected vital nation-building investment, this Government is determined take the hard steps, do the hard yards, to ensure a safe, prosperous and equitable future for all.

As the Treasurer explained on Budget night, the principles on which our package of interconnected, coherent reforms is based are fourfold:

  • security for working families,
  • adhering to our commitments,
  • investment for the future and
  • fiscal responsibility.

This Government is committed to delivering its Working Families Support Package.

Over four years, $55 billion will be expended on targeted programs in tax reform, child care, housing, education, and related matters including dental health - not to mention supported accommodation for disabled people with aged carers.

This Government is investing in the skills and education sector, hospitals and health, infrastructure particularly water, to which I will return and sustainability

And this Labor Government is looking to the future in a way that the previous government could not possibly have contemplated.

Through these bills, we propose to the Australian people a Building Australia Fund to alleviate the neglect of critical transport and communication infrastructure, an Education Investment Fund to finance capital works in our dilapidated education and vocational education sector and a Health and Hospital Fund to ensure renewal of hospital facilities, investment in technology and the fostering of research projects and facilities.

These bills are economically responsible and have been formulated to reprioritise spending away from ad hoc, electorally-expedient spending to sustainable growth and the reduction of inflation.

Appropriation Bills numbers 1 and 2 represent two of the principal items of legislation supporting the Rudd Labor Government’s first Budget.

The major items provided for in Appropriation Bill number 5 are education and infrastructure in this instance water.

As a proud representative of South Australia, and as a former educator, both have particular resonance for me, and that is why I address these items now.

I turn first to education.

A strong and appropriately resourced education sector is vital to Australia’s future, both locally and, of course, in terms of our international competitiveness. One of the cornerstones of our future well-being as a community and of our economic security is, undoubtedly, investment in education.

OECD research clearly demonstrates the sliding scale of the neglect, the downgrading of facilities, and in certain instances the wilful failure to act of the previous government in this particular area the result being the crisis we are dealing with in the education sector today.

In the decade since 1995, Australia was the only OECD country to effectively disinvest in the tertiary sector - just when additional funds were so desperately needed!

As I said in this place just prior to the last election, to give a young Australian the chance to get ahead, to maximise his or her potential, to take a valued place in a forward-looking, contemporary society, is one of the most important things a Government (can) do. And the Rudd Labor Government is acting now to alleviate the past capital disinvestment and underinvestment in this crucial sector.

The Government will provide an additional $500 million in the current financial year to the Department of Education, Employment and Workplace Relations for distribution among Australian universities. The funds will be allocated to capital investment in five priority areas.

These areas include:

  • IT communications in research and teaching,
  • laboratories,
  • libraries and places to study,
  • teaching spaces and
  • investment in critical student amenities.

I wholeheartedly commend this measure, as I do the water initiatives that formed the greater part of the balance of the appropriation.

The Government does not resile on its promise to tackle our water crisis. Indeed, it has already taken enormous strides in doing so.

Through Appropriations Bill number 5, the Government has provided an additional $112.3 million to the Department of the Environment, Water, Heritage and the Arts to fund a variety of water initiatives. These initiatives reflect the Government’s recognition that the water situation is absolutely critical and that urgent action must be taken.

The Rudd Labor Government is determined to act on this country’s needs for the future and that includes addressing areas of health that have so seriously been neglected by the previous government.

Today I speak of an issue that is having an increasingly adverse effect, not only on the physical and social health of our community, but also on our economy and the future productivity of our nation.

I refer, of course, to the issue of obesity.

Every person present in this chamber is aware of the escalating need to confront this issue.

But the Rudd Government understands that obesity is an issue which, if left unaddressed, would have the capacity to burden our health system with an explosion of preventable diseases.

Disturbingly, latest available Bureau of Statistics survey figures released in January 2008 show that in 2005, 7.4 million people aged 18 years and over were classified as overweight or obese that’s 54 per cent of the adult population! And these figures represent an increase from 5.4 million adults, or 45 per cent of the adult population, in 1995.

Figures adjusted to reflect differences between the age structures of indigenous and non-indigenous populations during the same survey period indicate that indigenous adults were more than twice as likely to be overweight or obese than non-indigenous adults.

Just as alarmingly, one in four Australian children is now overweight or obese.

What does the future hold for these children, these indigenous people, these present and potential contributors to our common good?

The direct consequences of overweight and obesity may include, among other conditions, coronary heart disease, diabetes, breast and other cancers, gallstones, degenerative joint disease, hypertension and obstructive sleep apnoea.

And the burden of chronic disease does not fall solely on the individual. An Access Economics study carried out also in 2005 showed that annual productivity loss from obesity related conditions was approximately $1.7 billion, with the net aggregate cost of the impact on the health system, carer costs, and the burden of disease on the community valued at an additional $17.2 billion the total, a staggering $21 billion.

We’re talking now about loss of inclusion through compromised ability to participate in community life, and cost to business not only through productivity loss but through lower participation and higher absenteeism.

The World Health Organisation reports that obesity is a global epidemic. Certainly obesity has reached epidemic proportions in Australia.

Physical inactivity and television viewing time have been shown to be the strongest correlates with measures of obesity, according to the most recent report of the Australian Diabetes, Obesity and Lifestyle Study.

Poor diet, and our long work hours combined with sedentary lifestyles, are significant contributors.

Those who would argue this assertion have only to look around their electorates to see its proof.

And if that is not sufficient, I’m sure that Senators will be interested to receive some information drawn from, and ancillary to, the Annual Report of the National Health and Medical Research Council for 2006-2007.

Alive to the dangers inherent in an epidemic of obesity-related diseases, the NHMRC has allocated some $70 million to obesity related research during the period 2000-2007. This is the greatest area of cumulative expenditure in the five areas of nutrition- related issues over that period.

Just a few days prior to the release of that Annual Report on 4 February last, the Minister for Health and Ageing announced that in the coming year the Government would invest in a number of new medical and health research projects.

These are intended to allow Australian researchers to pursue their areas of study and pursue collaborative work both in Australia and overseas.

As Minister Roxon noted:

‘We will...ensure that all Australians have access to the best possible research in relation to the critical health and medical conditions facing them today... Improving preventative health services and chronic disease management through targeted research will deliver better outcomes for Australians and their families’.

Among other key priorities set out on the occasion of the opening of this Parliament just four months ago, reform focusing on the area of obesity is specifically looking at the integration of preventative health care and improved health outcomes.

National leadership and State co-operation are key elements in the action to be taken, and the involvement of health professionals, sporting groups, local government, industry and the community is welcomed.

The first steps have been taken. Already the Minister has confirmed the Government’s investment of $25.6 million in our ‘Healthy Kids Check’, to be introduced over the next four years.

The Healthy Kids Check will be delivered by GPs or practice nurses, or by local councils and community health centres, in conjunction with or after each child’s four-year immunisation.

The program will benefit around 255,000 four year old children across the nation, and will provide a base line for future analysis of health indicators.

The need for follow-up services, particularly any services not available under existing referral arrangements, will also be monitored.

This initiative has been widely welcomed by a broad range of interested individuals and groups, including the Australian General Practice Network.

We will also see the distribution of the ‘Healthy Habits for Life Guide’, providing achievable and accessible ideas for parents keen to keep their young children healthy and active.

And the funding of school-based kitchen and garden infrastructure will be piloted in 190 primary schools across Australia to support the curriculum-based nutrition and gardening program ‘Stephanie Alexander’s Kitchen Garden’.

The Rudd Labor Government will also provide $1.7 million over four years to encourage community initiatives that combat obesity.

By contrast to the masterful inactivity of the previous government, Labor is demonstrating its commitment to action, elevating this very serious matter to the front line of our national preventative health strategy.

This government knows that long term policy is necessary for infrastructure, education, climate change, and for tackling disadvantage.

This is a government committed to the long term objective of building the best educated, best trained and best skilled workforce in the world.

From the Education Revolution, the high speed Broadband Network, the Working Families Support Package to the National Health and Hospitals Reform plan and the many other initiatives demonstrated...this is clearly evidence of a government that acts now planning for a secure future for all Australians.

Photo of Anne McEwenAnne McEwen (SA, Australian Labor Party) Share this | | Hansard source

The incorporated speech read as follows—

I am pleased to speak on Appropriation Bill (No. I) 2008-2009 and Appropriation Bill (No. 2) 2008-2009 which together are two of the principal pieces of legislation underpinning the Government’s first budget.

Appropriation Bill (No. I) 2008-2009 seeks authority for meeting the expenses of the ordinary annual services of Government, and Appropriation Bill (No. 2) 2008-2009 seeks approval for appropriations from the Consolidated Revenue Fund totalling almost $12.7 billion. This funding is part of the Rudd Labor Government’s first Budget - a budget which will—if the Opposition don’t abuse their Senate majority to vote against it—put downward pressure on interest rates and inflation as well as providing for Australia’s working families.

The rising cost of living has made life difficult for families during the last decade. There have been 8 interest rate rises in the last 3 years and in the last 2 years rent has increased by over 10 per cent and the price of fruit and vegetables has increased by 14 per cent. While these financial pressures on families increased, the Howard Government looked on and contributed to inflation by spending nearly $285 million in the 2006/2007 financial year on Government advertising.

Instead of helping families, the former Government worked hard on its reviled WorkChoices legislation which would have made it even harder for working families to make ends meet. The Howard Government lost touch with Australian families and in doing so, failed to recognise what they needed was fiscal support, not glossy publications and WorkChoices mouse pads.

Labor will not make the same mistake. We believe in giving everyone a fair go. Last month, the Rudd Labor Government delivered its first budget. We delivered a budget that will deliver to Australians who missed out in the 12 budgets of the Howard Government. We will do this through the $55 billion Working Families Support Package.

Being a parent is a fantastic experience but the cost of raising children is expensive. The Government is determined to ease that pressure, lifting the Child Care Tax Rebate is a clear example of this determination. Labor proposes to increase child care assistance by lifting the rebate from 30 per cent to 50 per cent of out-of-pocket costs and increasing the annual cap from $4354 to $7500 per child. We understand that the cost of childcare isn’t the only obstacle faced by parents, availability is a big problem. For this reason, the Government, over the long term, has committed to ensuring 260 child care centres are built in priority areas.

An important part of the Working Families Support Package in respect to raising children, is the $4.4 billion education tax refund. This refund will mean that parents who are entitled to family tax benefit A or whose children receive the youth allowance, can claim a 50 per cent tax refund of up to $750 in education expenses for each child in primary school. That’s a refund of up to $375 per year, and up to $1500 in expenses for every child in secondary schools, a refund of up to $750 per year.

Another great initiative to ensure that all families, including those who are struggling financially, are still able to provide their children with a good education, is the roll out of universal access to early learning for all four-year-olds by 2013. The Government will fund 15 hours per week for 40 weeks per year of play-based learning and development programs, allowing every child to start their schooling on equal footing, regardless of their families’ financial circumstances.

Education is a focus of the Government and it shows in our first budget. One hundred million dollars will be provided to the Department of Education, Employment and Workplace Relations, as part of a $1.2 billion funding package over five years, to implement the digital education revolution in partnership with state and territory governments. This initiative delivers on an election commitment and includes:

  • the establishment of a National Secondary School Computer Fund to provide grants of up to $1 million to eligible secondary schools to assist them in providing new or upgraded information and communications technology to students in years 9 to 12;
  • contributions towards the provision of high-speed fibre-to-the-premises broadband connections to schools and to provide support to ensure the effective deployment and installation of computers and ICT equipment purchased under the fund; and
  • funding for collaborative work between the Commonwealth, state and territory governments and non-government school system and industry to develop a unified technical framework and to fund administration costs of block grant authorities which will manage funding for non-government schools.

The schools receiving computers in the first round were announced earlier this month and I was happy to see that 63 schools in South Australia will be benefiting from the first roll out.

The tax cuts in this budget total around $46.7 billion. The benefits of these tax cuts are two fold as they will encourage people to enter the workforce, increasing workforce participation and will alleviate the financial pressures facing many people. Under the new system, Australians will be able to earn up to $14000 for the next financial year, without having to pay any tax, this is effectively $3000 higher than the current threshold. This change will be of particular benefit to part time workers, who according to the Productivity Commission make up 29 per cent of the workforce. It’s important that part time workers who are concentrated in low-paying jobs with high turnover, are provided with as much assistance as possible.

Labor made a number of significant election promises in the area of health and this budget delivers on those promises. It is essential that all Australians are able to access high quality, affordable healthcare. That is why we will immediately inject $1 billion to relieve the pressure on public hospitals as part of a $3.2 billion health and hospital reform plan. Also included is $275 million over five years to establish 31GP Super Clinics in local communities. These super clinics will improve health services in rural, regional and outer metropolitan areas by bringing together general practitioners, nurses, allied health professionals, some specialists and other health care providers to deliver a range of health services that are tailored to meet local health needs and priorities.

Dental health has been given great consideration when writing this Budget as a dental care waiting list of 650,00 is not acceptable. The previous Government did not deliver adequate health and dental services to Australians. The Liberal Government’s dental scheme was a failure, it had low uptake and didn’t provide to those patients who needed it the most.

Over the next three years, the Government intends to provide $290 million to State and Territory governments to help fund up to one million additional consultations and treatments for Australians needing dental treatment.

Over the next five years, the Government also plans to invest up to $490.7 million to help more than one million Australian teenagers look after their teeth. The Government will provide $150 (through the newly established Dental Benefits Schedule) per eligible teenager towards an annual preventative dental check, including an oral examination, scale and clean and x-rays where required.

Around 1.1 million teenagers aged 12-17 in families receiving Family Tax Benefit Part A, and teenagers in the same age group receiving Youth Allowance or Abstudy, will be eligible for the program each year. By funding preventative check-ups, the Government wants to prevent more expensive procedures in the future as cavities and other dental diseases will be caught early or avoided all together.

Despite all of these positive proposals, the Opposition moved last week that the Health Insurance (Dental Services) Amendment and Repeal Determination 2008 made under section 3C(1) of the Health Insurance Act 1973 be disallowed. The Opposition want us to continue with their failed dental plan because they are not willing to own up to their mistakes. The arrogance of the Coalition is truly breathtaking.

Working families as well as singles will benefit from the changes to the Medicare levy surcharge thresholds. While the cost of living and incomes have changed over the last 11 years, the income thresholds haven’t. This has resulted in people on average wages by today’s standards, becoming liable for the surcharge. The Government are increasing the thresholds to bring them in line with today’s wages so that the Medicare levy surcharge is only placed on higher income earners. From I July 2008, singles with incomes up to $100 000 and families with incomes up to $150 000 will no longer have to pay the surcharge. These are both increases of $50 000 from the current thresholds.

Older Australians are also battling with the rising cost of living. To assist seniors in making ends meet, the Government has:

  • increased the Utilities Allowance from $107.20 to $500 per year;
  • increased the Seniors Concession Allowance from $218 to $500 per year;
  • increased the Telephone Allowance from $88 to $132 per year for those with an internet connection; and
  • committed to paying the $500 Seniors Bonus again this year.

I have been in contact with my older constituents and they have been concerned by the fact that their pension has not increased at the same pace as the cost of living. To alleviate this, the Government will ensure that the Age Pension will increase in line with the higher of the consumer price index, increases in male total average weekly earnings or the living cost index for age pensioner households. Older Australians have contributed, and continue to contribute, a great deal to Australia, Labor has not and will not leave them behind as we move towards a fairer, better future.

The Government also appreciates the contribution that carers make in our community. This appreciation is reflected in this budget with $293.6 million being allocated for 19,000 carers of children with profound disability and a $500 Utility Allowance for seniors which is now extended to 130,000 carers for the first time.

Labor honoured another election promise in its first budget, and that was to address the issue of climate change. Unlike the opposition who when in Government denied the existence of climate change, we have listened to researchers and taken action. One of the first acts of this Government was the ratification of the Kyoto Protocol and this budget ensures that we continue work in this area. This Budget allocates $2.3 billion over five years to reduce Australia’s greenhouse emissions, adapt to climate change and ensure that Australia takes the lead in the transition to a low emissions economy.

The Rudd Government knows that everyone can make a difference in the battle against climate change, which is why the government will invest almost $1 billion to help Australians make their homes more environmentally sustainable. This includes $300.0 million over five years for low interest green loans of up to $10,000 to assist families to install solar, water, and energy efficient products.

Climate change along with extended drought and over allocation has had a significant impact on the Murray-Darling, this is an area of particular concern to my South Australian constituents. The Government is acting quickly to restore the river’s health. With this Budget, an additional $112.3 million will be provided to the Department of the Environment, Water, Heritage and the Arts to fund a variety of water initiatives. This includes an additional $81.0 million in 2007-08 as part of a bring-forward of $400 million of funding from 2011-12 under the Water for the Future package, to accelerate investment in water-saving infrastructure and to purchase water entitlements from willing sellers. Water for the Future focuses on four key priorities: taking action on climate change, using water wisely, securing water supplies and supporting healthy rivers.

Another area of Government spending which is of much interest to South Australians is defence. South Australia has a proud history of defence innovation.

Labor’s Budget has made a significant investment of $1.036 billion for 2008-09, into the Australian Defence Forces to assist the ADF in their vital role of supporting domestic, regional and international security. The funding consists of:

  • $618.9 million for Operation Slipper, Australia’s contribution to the International Security Assistance Force in Afghanistan. This demonstrates Australia’s commitment to working with the international community to help combat terrorism;
  • $174.3 million for Operation Astute, Australia’s assistance to Timor-Leste to restore peace and stability;
  • $215.7 million for the continuation of Operation Catalyst, Australia’s contribution to the rehabilitation and reconstruction of Iraq; and
  • $27.1 million for Operation Anode, Australia’s contribution to the Australian-led Regional Assistance Mission to the Solomon Islands.

This funding is evidence of the Rudd Labor Government’s commitment to supporting the defence forces and their role in providing the defence and security of our nation.

The budget also gives back to those in the veteran community and their families who need and deserve the support of their country. During the election campaign, Labor was clear that if elected, we would work closely with the veteran community to address the issues that concern them. We owe much to our defence personnel and must reflect this in the way we treat veterans when they complete service. The Rudd Labor Government budget amends veteran’s entitlements through the extension of the income support supplement to war widows and war widowers who are under qualifying age. No longer will those under qualifying ago have to be permanently incapacitated or have a dependant child or partner receiving an income support before they can receive the income support supplement that they so rightly deserve. Once in place, this amendment will immediately benefit approximately 1400 war widows or widowers, assisting them in meeting the rising cost of living.

The budget extends the automatic grant of war widow, widower or orphan pension to the widows, widowers and eligible children of veterans and members who, immediately before their death, were in receipt of the temporary special rate or intermediate rate disability pension.

Veterans will also see the disability pension bereavement payment extended in certain cases. As it stands, this payment is only payable in respect of partnered disability pension recipients. Labor wants to make these payments more equitable. That is why this Budget extends the bereavement payment to cover single recipients of the special rate and extreme disablement adjustment disability pension who die in poor circumstances.

Appropriation Bills 1and 2 are part of Labor’s budget that delivers to working families, addresses the issue of inflation and will take Australia into the future with confidence and strength. Despite this, those opposite continue to play games, stopping these benefits from being rolled out to Australians. The opposition’s referral to committees of several key budget measures has the effect of stripping away nearly $300 million worth of real money from the budget surplus.

The Labor Government has come up with a budget that includes much needed initiatives many of which the Opposition is frustrating by its belligerent attitude in the Senate. By blocking and delaying Budget bills, the Opposition is eroding the $22 billion surplus of our Budget and taking away from those who need assistance. We have developed a Budget that provides for Australians, is economically responsible and will put downward pressure on inflation and interest rates. To not allow this Budget to come into effect shows just how economically irresponsible the Opposition are but we already knew that, as did the people of Australia who chose to elect a Rudd Labor Government last year.

Photo of Trish CrossinTrish Crossin (NT, Australian Labor Party) Share this | | Hansard source

The incorporated speech read as follows—

The 2008 Budget is a responsible one that will help fight the high inflation inherited from the previous government and help working families.

We have the highest inflation figures for the past 16 years and high inflation puts upward pressure on interest rates. It was essential therefore in framing this budget that we fight inflation by bringing in a surplus, while at the same time investing in our future growth and productivity.

The global economy is going through what the International Monetary Fund describes as the greatest financial shock since the great depression. We are in no way free of the effects of this.

Record oil prices have added to an already very difficult situation.

Despite this we have framed a responsible Budget which honours our election commitments, helps working families, invests for the future and still produces a strong surplus.

The Working Families Support Package with $55 billion helps families meet increasing costs of living through tax cuts, help with childcare, education and housing costs.

We recognise the financial problems faced by these families, unlike the previous government which tried to persuade them that they had never been better off.

The Budget also delivers $5.9 billion towards meeting our Education Revolution, $2.3 billion to address climate change, and $3.2 billion to end the blame game on our hospitals.

We have invested in our future with a $20 billion Building Australia Fund for investment in infrastructure, $11 billion Education Investment Fund for improving university and TAFE education and a further $10 billion in the Health and Hospitals Fund.

These are all areas of spending investment sadly neglected by the previous government. The result has been a worsening infrastructure bottleneck slowing down our exports and productivity. A worsening position for our higher education sector with deteriorating infrastructure, increasing class sizes, falling morale and a rising skills shortage. Our hospitals have been struggling to meet demand for their services.

We achieved this budget by cutting out waste. Every new dollar in our budget came from savings elsewhere. This meant of course thoroughly analysing previous spending and making tough decisions on where to save money to invest for the future with new programs.

Federal Labor’s first Budget in 13 years won the backing of the Reserve Bank as one that fights inflation. The Reserve Bank is of course rightly an independent body that makes its own decisions, but to have them consider that this budget is one that fights inflation is a considerable plus sign.

I make no apology for now focusing on a few of the Budget areas of particular interest to me as a former teacher working in Indigenous Education, playing an early role at Charles Darwin University and representing the whole of the vast Northern Territory.

The Education Revolution includes $2.5 billion over 10 years for Trade Training Centres in schools. This will enable more of our young Australians to pursue technically oriented careers, contributing to reducing the skills shortage our nation inherited.

Applications for these funds have been open for some time and schools are already applying to use this program.

The Education Revolution includes $1.9 billion over 5 years for an additional 630,000 training places to boost workforce skills. Again this will greatly increase the number of skilled workers far more over time than the Australian Technical Colleges seem to be doing.

It includes $1.2 billion over 5 years to fund computers for those in years 9 to 12. Again, in this day and age our students cannot afford to be anything but computer literate and so much learning occurs using computers and associated programs.

School needs have been assessed and the first tranche of these funds is out there for those assessed as most needing computers to get them.

An additional $500 million will be provided in 2007-08 to help universities upgrade and maintain teaching and research facilities in advance of any decisions on funding made under the Education Investment Fund in future years.

This is for universities to start catching up on capital works projects that they have for years had to postpone due to under funding by the previous government. In later years when the Education Investment Fund starts more funds will be available to them.

We believe higher education is an investment in skills for the future, and quality education cannot take place in poor facilities.

In addition full fee university courses are abolished and there is a growth in the number of scholarships offered. These will increase from 44000 up to 88000 by 2012 — a doubling of the number. This measure will clearly help families who are doing it hard to get their children into tertiary education.

There will be a reduction in the maximum annual student contribution in subjects such as maths and science to encourage more students into these important areas.

Once again we have fallen behind many other developed nations in the number of science graduates entering the workforce — science teachers for example are becoming very hard to find or recruit.

At the same time as reducing costs for students there will be a Transitional Loading under the Commonwealth Grants Scheme to fully compensate Higher Education providers for the reduced revenue from lower contributions for maths and science.

Students and providers are all remembered in this Budget. It is responsible AND fair.

This budget delivers $1.2 billion over 5 years towards Closing the Gap between Indigenous and non Indigenous Australians. The Gap is too well known for me to enter into details here, but exists in health, education, training and employment.

If I may focus on my electorate for a while. There are commitments totalling $666.1 million in the Northern Territory alone. These include: $3.4 million for early childhood development services; and $154.2 million to expand educational opportunity which includes building 3 new boarding facilities, increased professional development of teachers, a Nutrition Program to provide breakfast and lunch in many community schools and funding of 200 additional teachers by 2012.

Despite the efforts of the Territory Labor Government in establishing secondary education facilities and courses in many remote communities, there are still many Indigenous children whose only access to secondary education is by going away from home.

These proposed new boarding facilities will enable many more to do so at the same time as having safe, supported accommodation to stay in.

The School Nutrition Program is providing breakfast and lunch for many young kids who might otherwise well go without. I have heard reports from health clinic nurses in communities who say the rate of anaemia for example has dropped when kids have a good breakfast and lunch.

The NT commitment includes $78 million for community safety and policing for further assistance for safe houses and support workers; alcohol diversionary activities; more on ground police; more night patrols in remote communities.

Night patrols make communities safer and more secure for families and children and will continue in communities covered by the NTER.

More police on the ground in communities has been welcomed and while reports indicate that since the Intervention rates of alcohol abuse and violence have dropped, this is again a valuable program which will continue to help closing the gap and keep children safe.

$168 million for employment and pre employment services to increase Indigenous access to skills development and jobs.

This too is a key element in closing the gap in enabling Indigenous people to access more training to increase their employability.

While many remote communities in the NT have only limited real jobs, we want to ensure that Aboriginal people can take them

$113.3 million for health services to provide follow up health care, improved child and family health service delivery.

This government is committed to ensuring that the interests of children are foremost but equally that we Close the Gap.

The team to carry out the Intervention Review has recently been announced and they will report by September on how the Indigenous people see these interests best served.

The Indigenous population in the Northern Territory is fast growing so these tasks will not be easy and will require long ongoing budget commitments.

More generally this budget provides $8 million over 4 years for the establishment of the Office of Northern Australia. This will provide high level advice on infrastructure, transport, and sustainable regional development for the whole north of Australia. Information from this office will flow direct to Canberra to the Minister.

Defence Force families in Katherine will benefit from the roll out of the free basic health care trial — this enables families to select the doctor or dentist of their choice and receive basic general practice consultations free of charge or dental care up to $300 per dependent per annum.

Defence personnel get moved around frequently and are often away doing a great job for the nation so it seems only fair that we look after these families.

Defence bases across Australia, including those in the Territory will benefit from base maintenance both in facilities and base living-in accommodation including at the Darwin patrol boat base and Bradshaw Field Training Area.

This budget provides $78 million for infrastructure in the NT. Of this $8.8 million will deliver as a matter of urgency, funds for the Port Keats Road, Tanami Road, Plenty Highway and Buntine Highway.

While these roads may not be big in terms of comparison to a city freeway in size or traffic volume, for the NT they are very important.

They are important not only for connecting territory communities, but for tourism and the pastoral industry.

For example The Buntine Highway connects Katherine to communities such as Kalkaringi and Lajamanu and goes on to join the road to the Tanami which is used not only by a gold mining company but by "adventure" tourists. The Buntine itself is important for bringing out live cattle exports to Darwin.

Improving roads such as these, while fairly small in the big picture, reduces infrastructure bottlenecks for moving our products thereby improving our productivity.

A total of $11.7 million will funds Roads to Recovery projects. These projects enable local authorities to upgrade smaller roads through relatively minor works but this contributes to improved road conditions and safety.

So while only a very small part of the overall national budget, the Northern Territory gets funding for a range of programs that will help to close the gap for Indigenous people, help families, help our defence force facilities and personnel and develop our road network that bit more.

So despite the difficult circumstances under which this budget has been framed, it is both fair and responsible, meets election commitments, helps working families and Indigenous Australians, invests heavily in our future health, education and infrastructure, and yet still brings in a strong surplus.

It is a budget that shows this government as sound economic managers that can make tough economic decisions and find savings to fund necessary budget commitments.

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

The incorporated speech read as follows—

I am pleased to support the Appropriation Bills Nos 1 and No. 2 and the first Labor Government Budget in more than a decade.

Indeed the Rudd Labor Government used their first budget to deliver on its election commitments to the Australian people and to build strong and secure foundations for our Nations future.

The Government used this year’s budget to deliver some much needed financial relief to working families.

It also used this year’s budget to invest in our Nation’s long term future, establishing a number of funds in the priority areas of infrastructure, health and education.

Therefore this budget effectively delivered a double dividend for working families by providing both immediate relief on the family budget and investing in their long term economic security.

While the Rudd Labor Government used the budget to deliver much needed financial relief for working families and invest in our nation’s long term future it did so responsibly.

The Rudd Labor Government believes in governing for the future—it believes in laying the foundations for the nation’s long-term prosperity.

That is why it used this year’s budget process to rein in unnecessary and wasteful spending by the previous Government, in a bid to tackle inflation and put downward pressure on interest rates.

This budget proves the Government understands the concept of responsible economic management. It understands that it is possible to deliver for Australian families while at the same time pursuing economically responsible policies to tackle inflation and protect our long term future.

Need I remind the chamber that this lies in stark contrast to the previous Howard Government, whose spending habits drove up inflation and which ignored the basic long term needs of many Australians?

Indeed, the spending habits of the previous Howard Government reveal that it had no long term plan for the future or little understanding of the needs of working families.

This is reflected by the fact that when the Howard Government left office last November inflation was at its highest level in 16 years and we had the second highest interest rates among advanced economies.

To add to this, the failure by the Howard Government to invest in essential infrastructure, resulted in the Rudd Labor Government inheriting a nation plagued by a permanent skills crisis and a chronically under funded health and hospitals system.

However, as history demonstrates, the Labor party has never been a party to shy away from the challenges of Government.

Indeed, since being elected last November the Rudd Labor Government has hit the ground running—it has rolled its selves up and got stuck into the business of government and business of building prosperity of our nation’s future.

Our sleeves most definitely are rolled up, Mr President. The measures contained in the Governments first budget prove that.

It proves that this Government is a Government of action and is dedicated to building for our nation’s long term future.

Indeed, this budget contains several “national building” initiatives aimed squarely at re-establishing the key foundations of a strong economy and thus laying the key foundations for Australia’s future.

The Government has taken a strategic approach to the investment of the budget surplus by creating three new funds.

These funds largely address capital shortages resulting from the failure of the Howard government to invest in the important areas of infrastructure, health and of course education.

As a result the Government will invest $40 billion in these priority areas through three primary funds.

These funds include:

Building Australia Fund, which will receive around $20 billion over the next two years to fund shortfalls in the national transport and broadband;
Education Investment Fund, in which the government will invest $5 billion and which will absorb and extend the Higher Education Endowment Fund, bringing the total funding to around $11 billion in this area; and
The Health and Hospitals Fund, to which the Government has allocated $10 billion to help revitalise our public health system and refurbish the nations public hospitals. The fund will also be used to support the development of major medical research facilities and projects.

This is nation building—these measures deliver on our commitment to govern for the Nation’s future.

These measures will help address critical infrastructure shortfalls, they will assist greater access to crucial services and most of all they will help tackle inflation.

Indeed, the Rudd Labor Government’s first budget, brought down just over a month ago, made tackling inflation and bringing the economy under control front and centre.

To this end, the Government used the budget to introduce a number of measures, based upon its five point plan to tackle inflation, including increased investment in infrastructure, and education and training.

For working families this means a double dividend, because not only has the Rudd Labor Government delivered a budget aimed at tackling inflation, it has also delivered a budget that provides some relief to working families when it comes to cost-of-living pressures.

The Rudd Labor Government recognises that families were forced to do it tough under the Howard Government’s twelve years of inaction and families are now faced with housing prices at an all time high and rising petrol and grocery prices as a result of growing inflation.

That is why the Rudd Labor Government, along with delivering a budget that is economically responsible has also delivered a budget aimed at tackling cost of living pressures on families.

The Budget contains $55 billion working Families Support Package, which includes:

$46.7 in tax cuts, which will see families with a single income of $40,000, $1,050 better off a year and families with a combined income of $100,000, where the primary earner’s income is $60,000, $1,650 better off a year;
The introduction of the  Education Tax Refund; which will provide up to $350 per primary school child and up to $750 per child for those currently in receipt of Family Tax Benefit; helping parents with the cost of their kids’ education; and
An increase to the Childcare Tax Rebate from 30 per cent to 50 per cent to be paid quarterly; with the first payment being made to families in October this year. The Government is increasing the amount payable cap from $4354 per child per year to $7,500 per child per year. This measure alone will assist up to 700,000 families a year.

The Budget also importantly catered to the immediate and long term needs of seniors. The Government announced a number of measures with immediate benefits for seniors including:

An increase to the Utilities Allowance from $107.20 to $500.00 per year to be paid quarterly. The second instalment of the allowance is due to paid in the next week or so, as are the bonuses of $500 for seniors, the $1000 for those in receipt of carers payment and $600 for those receiving the carers allowance.

The Government also increased the Telephone Allowance from $88 to $132 per year to assist those with an internet connection to be paid quarterly.

The Labor Government also announced that it will investigate and review the adequacy of current levels of social security benefits received by seniors as part of its comprehensive review of the Australian tax system. The Government plans to release an initial discussion paper on the review as early as July this year.

This move comes off the back of a recommendations made by the Senate Community Affairs Committee to review basic pension levels as part of the recently completed Inquiry into the cost of living pressures on older Australians.

With Housing affordability at an all time high the Rudd Labor Government also used this year’s budget to tackle the issue of housing affordability head on, with the Government announcing a $2.2 billion housing affordability package to assist first home buyers and renters, including enhanced First Home Saver Accounts, a National Rental Affordability Scheme and the Housing Affordability Fund.

These are the actions of a Government that recognises the pressures on working families, seniors and carers and that is genuinely committed to assisting them achieve long term financial security and stability.

Our Government has also in recent times proven that it is serious when it comes to the issue of climate change.

In the lead up to last year’s election, the Rudd Labor Government, unlike the previous Howard Government acknowledged the need to take urgent action on climate change.

The Government, as part of the budget announced $2.3 billion over four years to help tackle climate change-delivering on its pre-election commitments to take real action on in this area.

The $2.3 billion includes:

$1.0 billion to help make Australian’s homes and their communities more energy and water efficient;
$260 million to Australian businesses to reduce their impact on the environment;
$1.7 billion to support Australia’s leading scientists, researches and industry in their work to improve energy efficiency and develop cleaner energy options; and
$459 million to establish the Department of Climate Change to deliver on commitments in this area including a national renewable energy target and an emissions trading scheme.

With the green paper on the emissions trading scheme due to be handed down next month, the Government has wasted little time on taking action to address climate change.

The Minister for Climate Change and Water, Senator Wong has already openly stated that “climate change is one of the biggest challenges we face as a nation.”

Indeed its impacts threaten not only our economic prosperity, but also our way of life.

While the Minister has also acknowledged that after eleven years of inaction by the previous Government, taking action on this issue will not be easy and it will involve an element of cost, the cost of inaction threatens to be much greater.

Those opposite know this—yet they are already threatening to delay the introduction of the emissions trading scheme.

For eleven long years they failed to act to protect the nations future from the threat of climate change, and now, when action is needed more than ever, they have retreated to the same position.

This proves once and for all that those opposite have been and continue to be climate change sceptics.

Just in the same way that, for eleven long years the opposition failed to act in response to the threat posed by climate change, it also failed to sufficiently fund our now failing health and hospitals system.

After 11 years of neglect there is a desperate need to provide a better health and hospital system for Australians.

This year’s budget delivers on the Rudd Government pre-election health commitments.

The Rudd Labor Government’s first budget saw the creation of a multi-million dollar plan aimed squarely at building a stronger public health system for all Australians.

The $3.2 Billion National Health and Hospitals Plan will ensure Australian families have access to affordable health care by working with the States and Territory Governments for the first time in 12 years.

The Government’s significant long-term commitment to health is nowhere better reflected than in my home state of Tasmania, where it will provide more than $50 million in additional health services.

This significant investment in Tasmanian health services includes, amongst other things:

Up to $15 million to build 4 new GP Super Clinics in Burnie, Devonport, Bellerive and Sorell;
$15m towards the establishment of an Integrated Care Centre in Launceston;
Up to $7.7 million to establish an additional radiation oncology unit in the north or north-west coast;
$3.5m to support the purchase of a PET scanner at Royal Hobart Hospital; and
a share of:

The Government’s investment in the public health system, comes as a welcome relief, especially in my home state of Tasmania, where, in its last five years in office, the Howard Government under funded the public health system by a staggering $70 million.

The Budget also contains a number of significant other measures which directly benefit Tasmanians. These include, amongst other things:

$104 million in road and rail in the 2008-09 year, with more than $450 million in rail and road infrastructure over the next five years. This money is for vital projects such the Bridgewater Bridge upgrade, the Kingston by-pass, the North-East Freight Roads, and the Brighton by-pass. And, in 2008-09 there is $1.2 Million in Black spot road funding and $11.1 million in the roads to recovery program.

There is over $140 million for water infrastructure in Tasmania, including $12 million for the Huon Valley Water Scheme, which will provide clean drinking water to residents that live just 40 minutes to the south of Hobart. There is also $10.5 million for the Clarence Water Re-Use Scheme—a valuable scheme that provides reused water for irrigation.

$12 million to establish a manufacturing centre on the north-west coast to assist Tasmania’s 2,000 small and medium size manufactures become more productive and competitive.

To quote the Tasmanian State Treasurer:

“[The Federal Budget] delivers in the key areas of health, education and infrastructure and will ease the pressure on working families.”
“I am pleased that the Federal Government has recognised the areas of importance to Tasmanians with three special funds for infrastructure, education and health and hospitals.”

Other important Budget measures to benefit Tasmania include:

The establishment of a specialised child care centre for children with autism in the north-west of the state;
$10 million to fund research into the crippling devil facial tumour disease;
$11.5 million for the University of Tasmania to revamp its buildings;
The extension of the Tasmanian freight Equalisation Scheme to cover the cost of freight from King Island to Mainland Tasmania; and
An increase in the vehicle rebate, under the Bass Straight Passenger Subsidy Equalisation Scheme, from $168 to $180 which will benefits tourists travelling to Tasmania as well as Tasmanians heading interstate.

When combined with the Rudd Labor Governments other budget measures aimed at reducing cost-of-living pressures and tackling inflation, this year’s federal budget has been a win, win for the majority of Tasmanians.

While the Rudd Labor Government delivered an economically responsible budget that promised to provide some welcome relief to families when it comes to the household budget, Australian families could be denied such benefits if those opposite have their way.

Right from the word go, Dr Nelson and the federal opposition, faced with poor opinion ratings decided to play politics with several of the Governments budget announcements.

They did so purely in an attempt to score political points rather than advancing the best interests of the Australian people.

Indeed, not content with leaving a legacy, which saw inflation levels at its highest in 16 years, the liberal opposition last week used its numbers in the senate to block a number of crucial budget measures including:

The increase to the Medicare levy threshold, which was set to free around 400,000 from the liability of paying the levy and level a significant number of Australians up to $1,000 better off a year;

The National fuel watch scheme; which would have given motors more control over what they pay at the bowsers;

The luxury car tax;

The amendments to the rules regarding political donations and;

Reforms designed to end financial discrimination against same sex couples.

Adding to this, the opposition is also threatening to delay a number of other crucial budget measures and policy initiatives, including:

The proposed tax increase on ready-to-drink beverages-which gained the support of the Senate Community Affairs Committee in its report, handed down yesterday; and

The emissions trading scheme, which the Government working to a crucial time line of introduction by 2010.

This amounts simply to opposition for opposition’s sake. It is a staged attempt to get short-term political mileage out of key measures designed to protect our long term future.

Indeed the oppositions actions in relation to blocking key budget measures is nothing more than budget vandalism-with no purpose except to delay key measures that would benefit Australian families.

Treasury estimates that the cost of delaying these measures will be $284 million, which will come directly out of the budget surplus. Such a fall in the Budget surplus will result in increased pressure on inflation and interest rates.

Indeed as Senator Evans pointed out last week, that’s the equivalent of taking $13 out of the pockets of each and every Australian.

Australian families have already been forced to do it tough because of eleven years of neglect by the Howard Government, who turned a blind eye to the pressures on inflation, and the impact it was having on the family budget; why should the liberal opposition be allowed to force them to endure more?

Australians should condemn Doctor Nelson and the opposition for putting party politics above their best interests by failing to support measures designed to assist working families and secure our country’s long term economic future.

Overall the Rudd Labor budget delivers something for all: it delivers some much needed relief to working families and it delivers significant investment in our long term future.

I commend this bill to the Senate, and urge those opposite to stop their budget vandalism and support the measures contained in this years budget.

7:13 pm

Photo of Jan McLucasJan McLucas (Queensland, Australian Labor Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | | Hansard source

I am pleased to bring the second reading debate on Appropriation (Parliamentary Departments) Bill (No. 1) 2008-2009 and the cognate bills to a close. The government’s first budget delivers on election commitments to ease pressures on working families by helping them to deal with rising costs of living. It outlines farsighted steps to address the long-term challenges for Australia in education and skills, infrastructure, health and climate change. We are keeping our election promise to reduce inflationary government spending by introducing an economically responsible budget. We are delivering a strong surplus of 1.8 per cent of GDP in 2008-09 to put downward pressure on inflation and to help build a strong economy in the face of difficult global financial conditions.

By honouring our election promises, we have kept faith with the Australian people. In doing so, we are helping to restore trust and confidence in Australia’s political processes and institutions. As the Treasurer explained on budget night, we have delivered a coherent package of reforms based on four principles: delivering for working families, meeting our commitments, investing in the future and beginning the new era of economic responsibility.

In conclusion, this is a budget for working families. We are keeping our election promises to reduce inflationary government spending while providing tax cuts for working Australians hit hard by rising living costs. We have trimmed the fat from the budget, and we will use the savings to invest for the future—tackling long-term challenges like climate change, infrastructure bottlenecks and skills shortages. This is the end of short-term irresponsible spending and the beginning of long-term responsible investment. The Rudd Labor government has delivered a tight, well-managed budget that focuses on practical solutions to immediate problems and long-term planning and investment for future challenges. I commend the bills to the Senate.

Question agreed to.

Bills read a second time.