Senate debates

Wednesday, 27 August 2008

Questions without Notice

Pensions and Benefits

2:00 pm

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | | Hansard source

My question is to the Minister representing the Minister for Families, Housing, Community Services and Indigenous Affairs, Senator Evans. I refer the minister to the Prime Minister’s promise in March this year:

What I can say, to carers and pensioners right across Australia, is that there is no way on God’s Earth that I intend to leave them in the lurch.

Given the higher costs of living under Labor, why is the government continuing to leave pensioners in the lurch on a paltry $273 per week?

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

The hypocrisy in that question is breathtaking—from a senior minister in the Howard government who for 11 years did nothing to improve the lot of those pensioners. But it is an important issue and despite the tone of the question I will take it seriously. The government understands that many pensioners are doing it tough, that pressure on the cost of living with grocery bills increasing does mean that they are under pressure. We accept that food price rises, fuel costs and other pressures in the economy are resulting in inflation that particularly hits those who are on fixed incomes. Pensioners and carers are those who are most vulnerable because they have the least capacity to absorb those inflationary pressures. We are very much focused on tackling the inflation problem. We made it the No. 1 priority of the budget. As senators would know, our capacity to deliver on that fight against inflation is largely based on our ability to get our budget passed. We are deeply concerned that the Liberal Party have abandoned all sense of economic responsibility and have chosen to just oppose for the sake of opposing. In our first budget we did make a serious attempt to assist pensioners and carers. We did provide $1.4 billion of extra support to seniors. A $500 bonus was paid to 2.7 million senior Australians. That came on top of an increase in the utilities allowance from the $107 that the Howard government paid to $500 a year.

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | | Hansard source

Do you think that is enough, do you?

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

It is a substantial $400 increase over the allowance paid by the previous government, Senator Coonan. I think it was a very serious attempt to try to take the pressure off them. As I said, we are very concerned about the pressure on pensioners. We understand that the quarterly indexation payments that they received recently are not easing that pressure alone. That is why we have made it a priority as part of the review of the tax system to make a serious attempt to tackle the structural issues that underpin the value of the pensions and to look at what we can do to assist pensioners in a more fundamental way rather than the piecemeal way that the previous government did.

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | | Hansard source

What about doing something?

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

Senator Coonan, you want to keep chirping away. I welcome your contribution later today to explain why, after 11 long years, after a long period as a senior minister in the Howard government, you failed to do anything for pensioners. For you to turn around within eight months of going out of power and cry crocodile tears does not wash with pensioners—does not wash. If you were serious you would have done something. You did nothing. You stand on your record. You stand condemned. What this government did is make a huge down payment to assist pensioners and carers in its first budget. We inherited an economy with inflation at rampant levels, and that is putting enormous pressure on pensioners. We are trying to bring inflation under control, and if the Liberal Party—

Opposition Senators:

Opposition senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Senator Evans, resume your seat. Senator Evans is entitled to be heard in silence. Senator Evans, address your remarks through the chair. Those on my left should be quiet.

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

I am happy to complete my answer, if I am able to, which is to make the point that this government is very much focused on its assistance to pensioners and the best thing we can do for them in the short term is to fight inflation, and that means getting our budget passed. We urge the opposition to support us in that endeavour. (Time expired)

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | | Hansard source

Mr President, I ask a supplementary question. Now that the Prime Minister has come clean and admitted that Australians are worse off under his government, what are pensioners expected to do while the government delays with yet another review?

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

As I explained to Senator Coonan, this government made it a priority in the last budget and made a commitment of $5 billion over five years in direct support to pensioners in terms of utilities allowance, telephone allowance, et cetera. All those measures are designed to try to take some pressure off those pensioners. We accept that more needs to be done. We accept that they are under enormous pressure. But to be lectured by a former Howard government minister who did nothing in 11 years to resolve those pressures on pensioners quite frankly does not wash with me and does not wash with the pensioners affected. What we are doing is working hard at the issues that go to income for pensioners. As I said, it was a priority of the last budget and it remains a government priority. As we have indicated, the report on pension payments will be available to us by February next year. (Time expired)