Jenny Macklin (Jagajaga, Australian Labor Party, Shadow Minister for Families and Community Services) Share this | Hansard source

I rise to speak on this motion because hundreds of thousands of Australians are suffering as a result of the Howard government’s termination of Australia’s social security agreement with United Kingdom on 1 March 2001. There is no question that these people are under pressure from the rising cost of living, whether it be in grocery prices, in gas and electricity bills, in petrol prices—the list goes on.

It is true that the Howard government attempted to force the UK government to address some of the conditions of the agreement, specifically the nonindexation of UK pensions paid in Australia. However, it was a crude tactic and a failure that has left many senior Australians and residents entitled to a British pension worse off. As a result of this government’s decision to terminate the agreement, we now have new arrivals of pension age from the UK not able to access an Australian age pension for up to 10 years, and former Australian residents will no longer be able to claim a non means tested UK retirement pension using their Australian residence. I say to the Prime Minister: how do you expect these older Australians to maintain even a modest standard of living in retirement?

Over six years after it foolishly ripped up the old arrangements, the Howard government has failed to secure a new agreement. From Labor’s point of view, this is simply not good enough. A new social security agreement with the United Kingdom will be a priority for the next Labor government. Securing such a change of course will be difficult; however, the Labor Party believe a solution can be found, and we will put our shoulder to the wheel to get an agreement. These issues matter. They matter because there are so many senior Australians from the United Kingdom who deserve our support.

Recently Labor initiated a Senate inquiry into the cost-of-living pressures facing senior Australians. That is particularly important in this debate regarding the senior Australians from the UK who are suffering because the Howard government is unable to get an agreement with the UK government. What we wanted was to listen to the concerns of our senior Australians, to understand the pressures on them from the cost-of-living rises.

According to the submissions to the inquiry from the Australian Bureau of Statistics and National Seniors, the living costs of aged pensioner households have seen the highest increase compared to those of other household groups. Even the submission to the inquiry of the government’s own Department of Families, Community Services and Indigenous Affairs admits that over 25 per cent of senior Australians—that is, over one in four senior Australians—describe themselves as ‘just getting along’.

There was a submission to the Senate inquiry from a National Seniors group in Queensland which looked into the cost of the weekly grocery shop. Buying the items on the list cost $55 two years ago but may cost $75 today at the local supermarket. They go through a number of items: bread two years ago cost 89c but now costs $1.29, margarine was $3 but now is $4.20, a kilogram of mince two years ago was $3 but now is $8, and a cooked chicken was $5.99 two years ago and is now $10.50.

The Salvation Army highlighted the problems starkly in their submission when they said:

A significant percentage of older Australians presenting for assistance at Salvation Army services are assisted with food and/or food vouchers.

Fuel and utility costs have also hit many senior Australians very hard. From the inquiry we heard that many senior Australians are going to bed early or sitting in cold living rooms to save power. This is the reality for senior Australians under this current government. Unfortunately, they include many senior Australians from the UK, who the government has not turned its mind to help. The government seems to be saying to these senior Australians that they have to turn to the Salvation Army or other charities for help. Maybe this is what the Prime Minister means when he says that Australian families have never been better off. (Time expired)

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