John Murphy (Lowe, Australian Labor Party, Parliamentary Secretary to the Minister for Trade) Share this | Hansard source

I rise tonight to speak on Appropriation Bill (No. 1) 2008-2009 and related budget bills. I would like to outline those areas which are of particular concern to my electorate of Lowe in Sydney’s inner west. I start by commending the Prime Minister and the Treasurer for honouring Labor’s election promises to the Australian people in this, the first budget delivered in this parliament by the Rudd Labor government.

The current world economic climate is uncertain and, appropriately, the Treasurer has delivered a very responsible budget. Australians are experiencing rising living costs, from housing to groceries to fuel, to name some of the essentials. The increasing living costs arise from both internal and external factors, and this budget seeks to reduce those pressures on hardworking families. Importantly, the Rudd Labor government has fixed its sights on long-term, sustainable and responsible fiscal policy to ensure our economy can meet future economic challenges. Notably, the $21.7 billion budget surplus is designed to put downward pressure on inflation and stabilise interest rates. The allocation of funds is targeted to those most in need and coupled with initiatives to raise productivity and participation.

The Rudd Labor government has set the task of cooperating with state governments to end the blame game which crippled the health and education system for 11½ years under the Howard government. COAG meetings under a Rudd Labor government are now forums for constructive dialogue and decision making to improve vital services which every Australian expects and deserves. Prime Minister Rudd delivered on his commitment from the time he became opposition leader, when he promised that a government led by him would promote a cooperative dialogue between the federal government and the state governments.

Thirty-four thousand families in Sydney’s inner west in my electorate of Lowe welcome the $55 billion Working Families Support Package delivered in the 2008-09 federal budget. This package will provide tax relief of $46.7 billion over the next four years for low- to middle-income families. The package has increased accessibility and affordability to health care, including dental care, with the introduction of GP superclinics and the Teen Dental Plan.

For young families, the Rudd Labor government has increased the childcare tax rebate from 30 per cent to 50 per cent, increasing the claimable cap from $4,354 to $7,500 per child. As well as increasing the rebate, the government has allocated $1.6 billion to increase the number of available childcare places, more of which are desperately needed. That has been an important issue for the families I represent in the electorate of Lowe. The rebate will assist the 7,340 children under the age of four in my electorate attain an affordable, quality childcare place. I welcome this measure in the budget.

For the 20-plus schools in Lowe the education tax refund assists with education expenses for school students. The refund provides up to $375 for each primary school student and up to $750 per year for each secondary school student. This initiative alone will give a total of $4.4 billion in refunds to working families. These are real measures offering real relief to Australian families.

On the housing front, it would be an understatement to say that housing in the inner west is becoming unaffordable for the average Australian. My electorate of Lowe has one of the highest levels of mortgage stress in Australia. One constituent wrote to me in response to an information pamphlet on housing stress:

I’m a single income tenant, my husband has a long term illness which has made him unable to work since the end of 2004. We rent a tiny one bedroom flat in the Inner West for convenience of public transport to enable me to get to work. This one bedroom flat costs me 50 per cent of my weekly income.

My constituent went on to say that, because of the crisis, she had looked at purchasing an apartment. But, after seeking professional financial advice, she realised that a $250,000 loan would, with associated expenses, cost her more than 50 per cent of her income. This is the type of rental trap many people find themselves in.

This budget includes the First Home Saver Accounts package to help people save money for a deposit for a home and the Housing Affordability Fund and National Rental Affordability Scheme to increase the supply of affordable housing and rental properties. There is no simple, overnight solution to the housing crisis, and I commend the Rudd government for taking the first step in tackling the problem, unlike the previous Howard government.

Just as housing affordability became an issue the previous government chose to ignore, so too did the price of fuel. For all the condemnation the national Fuelwatch scheme has received from the opposition, I ask: what did the Howard government in its last three years of office do to alleviate rising fuel prices? What did the previous government do or even attempt to do to ease the rising cost of fuel for working families? The appointment of a petrol commissioner is a step to ensure transparency and competition in the petrol industry. It is to keep the oil companies honest and minimise the rorting—and hence the price hikes in fuel—that has taken place. It is another measure to assist working families in the fight against rising living costs.

For families with carers, the government has expanded the eligibility criteria for the carer payment. The Rudd Labor government recognises the invaluable work of carers and in this budget will deliver $20 million in ex gratia payments to certain families, extend the eligibility for the utilities allowance, and deliver a lump sum bonus of $1,000 to those receiving the carer payment and $600 to those on carer allowance. I know that there was considerable alarm at the mention of cutting the lump sum payment earlier in the year and I am delighted that the government has increased the benefits for carers in the 2008-09 budget in recognition of their sacrifice.

It would also be prudent to note a couple of local groups which have received targeted funding from this budget. I would like to acknowledge the Settlement Grants Program funding which two migrant organisations in my electorate of Lowe have received in the 2008-09 budget. My electorate, like many areas in Australia, is culturally diverse, with refugees and migrants choosing to live in Lowe. In fact, in the 2006 census 40 per cent of respondents in my electorate were born overseas. These organisations, the Chinese Migrant Welfare Association and the Russian Ethnic Community Council of New South Wales, will receive approximately $68,000 and $73,000 respectively.

Moving to a new country is extremely daunting and difficult, particularly for those with no prior knowledge of the language. These organisations are pivotal in assisting the successful integration of refugees and migrants, offering goods and services to help them become independent, self-reliant and active members of our community. I know you would understand that, Mr Deputy Speaker Andrews, from your previous portfolio. I am extremely pleased to know that there are services in my electorate catering for those in need and that they are being recognised in this budget and supported by the new federal Labor government.

I am also pleased that the 2008-09 budget gives the urgent attention needed to our tertiary institutions. Of the $500 million injection to Australian universities to rebuild their infrastructure, $5.9 million has been allocated to the Australian Catholic University. I am proud to say that my electorate hosts a campus in Strathfield and I know that these funds will enable the university to provide facilities for such purposes as research, child care and student amenities.

As the Parliamentary Secretary for Trade, I also welcome initiatives in this budget which will assist in lifting Australia out of the trade deficit quagmire left behind by the Howard government. In the last six years of the Howard government, total export revenues grew at an average annual rate of only 5.8 per cent. This compares with the 10.7 per cent growth in the 18 years following the float of the dollar by the Hawke government in 1983. The Howard government has bequeathed Australia a goods and services sector where export growth has stalled, a manufacturing sector that has collapsed and export volumes that are stagnant. Conditions in the global environment are no excuse for this performance.

Demand for Australian commodities reached record levels under the Howard government’s watch while, over the past five years, world trade has grown at twice the rate of world output. In my view, the Howard government was either unwilling or unable to engage in areas of opportunity. It was either unwilling or unable to take advantage of the global prospects presented to it. The result of the Howard government’s inability to integrate trade, social and economic policies is a trade performance that is one of the worst in Australia’s history. It will not be easy to steer the ship around. However, unlike the Howard government, the Rudd government is willing and able to engage in areas of opportunity and to take advantage of global prospects presented to it. Rather than having an unflinching obsession with free trade agreements and believing that the mere conclusion of bilateral agreements will be enough to lift Australia’s trade performance, the Rudd government is engaging in proactive reform.

The former government could not understand that improving market access globally is useless if Australian companies are not productive or competitive enough to take up these new opportunities. The former government could not understand that entering into free trade agreements would do nothing to assist companies in Australia that were hamstrung by capacity constraints—capacity constraints that have intensified over the past decade due to the disgraceful underinvestment in infrastructure by the Howard government. Despite the opening of doors to the global economy, our businesses have been forced to fight for Australia with both hands tied behind their back.

Several measures announced in the budget provide a clear indication of a fresh approach to Australia’s trade policy. Several measures demonstrate that Australia will seek a whole-of-government approach to increasing export levels. The Rudd government’s first budget will deal with some of the productivity reasons underpinning Australia’s poor export performance.

As the Parliamentary Secretary for Trade I am delighted with the government’s investment in education and skills. As I have mentioned, this budget will invest $5.9 billion over five years in the Rudd government’s education revolution, including investment in more training places, trade facilities in our schools and capital works for our higher education and vocational institutions. The Rudd government’s first budget will also deal with some of the capacity constraints holding back our businesses from sending greater volumes of exports to overseas markets.

This budget has provided a substantial down payment on a pledge to fix and modernise the nation’s infrastructure. An initial allocation of $20 billion will be used to build critical economic infrastructure such as roads, rail, ports and broadband. Unlike the Howard government’s last spending spree, which in my view was not only short sighted but also sickeningly reckless, the Rudd government’s first budget is the start of responsible investment in the very things that are constraining our export performance.

I have had the benefit of visiting many Austrade offices around Australia and the privilege of meeting many exporters. Almost all of those exporters have made mention of the need for critical infrastructure to support their businesses as well as skilled labour to improve their productive capacity. As I said, it will not be easy to undo 11½ years of neglect, but this budget is, refreshingly, a step in the right direction. Exporters have, for far too long, been carrying a disproportionate amount of the weight in the quest to improve Australia’s trade performance. The indolence of the former federal government has come to an end with this budget, and that will be of tremendous relief to many exporters.

As well as investing in the capacity of existing exporters to take their products worldwide, the Rudd government is also investing in the exporters of tomorrow. The government is acting now to ensure Australia is in a position to take advantage of the economic opportunities of the future.

Climate change presents both challenges and opportunities for Australian exporters. Australia has the natural conditions to be a world leader in the provision of clean technologies in global markets. The global market for renewable energy is set to be worth US$750 billion a year by 2016. We need to act now to ensure Australian companies are in a position to exploit these markets in coming years and be competitive. While there are already 17,000 Australians employed in renewable energy and related industries, there is great potential to increase this number. Unlike the Howard government, the Rudd government is not willing to ride on the back of those doing the hard work. That is why this budget will invest $150 million over four years to support the development of clean energy technologies in Australia. This is on top of a $500 million fund over six years to support the mandatory renewable energy target and accelerate the development and commercialisation of renewable technology.

These are the clearest possible examples of a government that has fresh ideas for Australia’s future. They are clear examples that the Rudd government has the conviction to engage in areas of opportunity and to take advantage of global prospects presented to it.

Before concluding, I wish to comment briefly on the Rudd government’s commitment to improving the very successful Export Market Development Grants Scheme, another key component of the trade portfolio. Notwithstanding the significant support for the scheme by businesses, the scheme had been cut in half by the Howard government in real terms. Not only has the Rudd government made this scheme more accessible for exporters; it has boosted funding for the scheme by $50 million in 2009-10. Like infrastructure and education, the EMDG Scheme was deserted by the Howard government. The previous government was no friend of the EDMG Scheme, just as it was no friend of innovation, research, infrastructure development or education investment—all of which are essential for our exporters.

I am proud to be a member of a government that has put an end to the reckless, short-term spending of the previous government and is looking to the long-term future of our country. This budget provides for the establishment of new nation-building funds—funds that are sorely needed if we are to have any hope of reversing a decade of neglect of our trade performance. This is a budget that will be welcomed not only by Australian exporters but also by the working families that keep our exporting traditions alive, including the ones that I represent in my electorate of Lowe. Unfortunately, I do not have time to elaborate on every provision in this budget which I feel is important to hardworking Australians, particularly those most relevant to my constituents. I hope I have outlined a few of the initiatives which indicate why I support the first Rudd Labor government. Of course the budget cannot address the shortcomings of every aspect in every area of Australian life. I do believe, however, that the Treasurer and the government have made an honourable and praiseworthy first attempt at laying the foundations for our country and have committed to fighting inflation, investing in infrastructure, developing a globally competitive trade platform and arming the workforce with the best education and training possible. Under the Rudd government and under this budget, I look forward to a better equipped Australia as we move through the 21st century.

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