Senate debates

Tuesday, 9 October 2012

Questions without Notice

Pensions and Benefits

2:28 pm

Photo of Christine MilneChristine Milne (Tasmania, Australian Greens) Share this | | Hansard source

My question is to the Minister representing the Minister for Employment and Workplace Relations, Senator Wong. I refer to comments reported today by the member for Page, Janelle Saffin, that, rather than cutting sole parent payments, the government should be more generous to the unemployed. Does the government concede that there is widespread community support, including within its own party, to increase Newstart and to maintain payments to single parents?

2:29 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I missed the end of that but I think it was a question about the adequacy of Newstart.

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

Just say whatever you want!

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

Thank you for that advice. It is the case that the government made a decision in the 2012-13 budget in relation to a particular group of parenting payment recipients who had been grandfathered in terms of their entitlement.

The senator would be aware that every other person who has entered the parenting payment subsequent to, I think, 1 July 2006 would be on the new arrangements which the government is currently proposing to apply to the cohort which was grandfathered. The government is very aware of the importance of ensuring there are appropriate policy mechanisms to support this cohort. That is why the government has done a range of things both in relation to this group specifically but of course more broadly in relation to supporting people into work.

This government spends more on child care than any government ever has. For example, in addition to our spending through the childcare benefit and childcare rebate, we announced an additional $225 million over five years for the JET program, which the senator I think is aware of, the Jobs, Education and Training Child Care Fee Assistance program which is specifically targeted to people on low incomes and on income support to assist them engaging in the workforce. As the senator would also be aware, the government has provided additional funding for a Schoolkids Bonus which was also announced in the budget, and the government has of course been in office over a period where we have seen some 800,000 jobs created.

We do recognise the issue which has been raised about the adequacy of Newstart and I might come to that in the supplementary question.

2:31 pm

Photo of Christine MilneChristine Milne (Tasmania, Australian Greens) Share this | | Hansard source

Mr President, I ask a supplementary question. I thank the minister but I wanted to ask her particularly, does she concede that there is widespread community support, including within her own party, to increase Newstart? Can she explain how forcing single parents onto Newstart payments of $35 a day will not drive people deeper into poverty?

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

On the first point in relation to the discussion about the adequacy of Newstart, that is on the public record and, unsurprisingly, Labor people who do care about fairness put their views on this issue. That is reasonable and that is appropriate. As you would know, Senator, the reason we have such a difference between pensions and the Newstart arrangements are indexation arrangements that well preceded the life of this government. However, obviously you have to look at what is possible and what can be funded, and the government's priority has been to fund measures to assist people into the workforce because fundamentally what we want to see, particularly at a time where we see unemployment where it is, are more people moving into the labour force and more people moving into work. I was going to also make the point in terms of the arrangements for this particular group that one of the changes the government has made is to change the taper rate for Newstart, which will ensure that parents who are on that payment are able to keep more of every dollar they earn, which is a significant change from the previous measures. (Time expired)

2:32 pm

Photo of Christine MilneChristine Milne (Tasmania, Australian Greens) Share this | | Hansard source

I ask a further supplementary question, Mr President. I ask the minister to confirm that the government will not increase Newstart for the same reason that it is cutting the single parents payment, and that is to meet its budget surplus. I would like the minister to explain to the Senate why achieving a surplus is a higher priority than helping people on the poverty line and how this cut and failure to increase Newstart provide a brighter future for the people of Australia.

2:33 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I make this point. First, a budget surplus is about a sound fiscal policy which is good for the economy. Good economic management is good for jobs, which is why we have seen more jobs created in the last years than in many previous periods and certainly when compared to many other advanced economies. The second point I would make is that it is not a recipe for social justice to refuse to run sound fiscal policy. If you are going to fund things as this government has, if you are going to fund things like increases to education, increases to the tertiary sector, increases to child care, increases such as we have in the pay equity space, you have to find the money to do it. Sometimes you do have to make some difficult decisions. But we have found the money to fund these socially progressive Labor things because we do care about these issues. So I reject the proposition that somehow the budget surplus is against fairness. We want to ensure you have a sound budget so you can deliver fairness.