House debates

Tuesday, 1 December 2020

Bills

Social Services and Other Legislation Amendment (Extension of Coronavirus Support) Bill 2020; Second Reading

7:04 pm

Photo of Rob MitchellRob Mitchell (McEwen, Australian Labor Party) Share this | Hansard source

Over the course of this year, my office, along with the offices of many other members in this place, has been inundated with calls from people who have been hit with unemployment in the midst of this pandemic. Nothing separates Labor, Liberal and the Nationals more than when we talk about the most vulnerable people in our communities in this nation. In Labor, we stand up for the most vulnerable people. Today's bill is just further evidence that the Liberal-Nationals would prefer to stand on them. We are all lucky to be here. We've got secure jobs. We have secure salaries. For many people in my electorate, buckling under the weight of mortgages which haven't gotten smaller, wage increases which have been deferred and families that still need to be fed, they rightly expect that the government should be there for them. It makes sense. If you're paying your taxes, if you're obeying the law, if you're earning a salary and you're a good citizen and something happens that's outside your control, our society should collectively step in and give you a hand. That's what makes this country great: we have a safety net. The people in this country know that if a one-in-a-100-year fire or flood or pandemic lands on your communal doorstep, you should have the confidence that the government will be there for you.

We see the bushfire victims from last year are still suffering because this government hasn't actually delivered anything more than an announcement to them. The government should be supporting people—people like mums and dads in McEwen—for as long as necessary for them to get back on their feet again and start working again. This pandemic also has been a body blow for the small businesses in our electorate. They've struggled to make ends meet, despite the government support that has been coming their way.

What's particularly worrying is that the government has not committed to support them beyond the 31 March deadline. The effects of this pandemic aren't going anywhere, but with this deep Morrison recession the economic effects of this pandemic will be felt for a long time to come. As the government delivers a trillion dollars in debt, the recession will be deeper and longer than necessary, because of the decisions made by this government. The Department of Social Services expects the number of people on unemployment support to still be elevated in four years time. Another 160,000 Australians will be added to the jobless queues by Christmas. We must remember this government was dragged kicking and screaming to the coronavirus supplement. They fought tooth and nail not to support people during this pandemic. It's already fallen from $550 a fortnight to $250 a fortnight. By 1 January the government intends to reduce that by a further $100, down to $150 a fortnight. Instead of a plan to get Australians back into work, the Prime Minister is leaving people behind to go it alone.

As we saw recently in Victoria, the state of a COVID outbreak can change so rapidly. It's important that governments maintain flexibility and agility to respond to outbreaks. Yet, what this bill does is seek to prevent the minister from extending the supplement beyond March 2021. Because of this, payment rates will go back to pre-pandemic levels. Too many people in McEwen know that these levels were already too low. Newstart is widely regarded as an unsustainable supplement. It isn't good for individuals, and nor is it good for our economy. Even members of the government benches support an increased payment. The members for New England and Cowper said going back to $40 a day was a 'cruel and unusual punishment'. So the challenge for those members and any member over there that may have a conscience is: will you vote against this heartless bill? I doubt it. But, in any case, it is cruel for the government to roll back these provisions.

On a large scale, this decision will impact around two million people, including those on JobSeeker payments, youth allowance, parenting payment, Austudy, widow allowance and the farm household allowance. These people aren't the proverbial 'dole bludgers' that the government likes to label. They're not corporate big-wigs taking millions in bonuses and dividends during a pandemic. They are nurses, they are students, they are grandparents and they are jobseekers. This government has shone that they do not care about supporting people who need it the most. What else can explain the budget, which abjectly failed to support older workers and women, or when they missed the opportunity to subsidise child care for the millions of families who were struggling to balance home and work in this new COVID world?

As I said, my office has heard from countless people struggling with unemployment. In recent correspondence, a constituent told me how she lost her job in the midst of the COVID downturn in March. She said: 'I'm sick of hearing that I just need to get a job from Mr Frydenberg and Mr Morrison. I'm aware I need a job. Actually, I'd like a job. The fact that I don't have a job is driving me further into depression. I know that there are jobs out there, but there are far too many of us applying. I'm sick of feeling like a leech, but I feel that's how Mr Morrison and Mr Frydenberg see people like me. It's not a good feeling. We are living below the poverty line.'

This is a heartbreaking story, and it captures the sentiment felt by so many in our communities. It is a story of hurt, loss and struggle in the face of a largely uncaring government. It is also a story which is supported by the facts of the situation. For every single job vacancy, there are more than seven job applicants. Evidence provided to Senate committees indicates that 1.8 million people will be relying on unemployment payments at Christmas, more than twice the number before the pandemic. How many more jobs are going to be lost when JobSeeker is cut in December? We've been asking that. Labor has been seeking this information from the government, but the government fail to provide it. You've got to ask why. It's either because they don't know or they don't care. So the opportunity for government members talking on this bill is to say which one it is.

We have pushed this government to do more and more during the COVID situation. We have been supportive of many of the measures taken, including the coronavirus omnibus bill. Although we're not going to oppose this legislation, we will continue to work constructively, as we have, to make this better. Labor will be moving amendments aimed at getting the government not to cut the coronavirus supplement at Christmas, but we should get the government to say, 'How about we deliver a permanent increase to the base rate of the JobSeeker payment and retain the ongoing powers to keep paying the coronavirus supplement after 31 March 2021?' This is one of those unique situations where the opposition is actually calling on the minister to have more power to help Australians who need it. We want the minister to have flexibility in assessing how dire the situation is for jobseekers and to judge the level of supplement based on that situation. Setting 31 March as the arbitrary date from which the supplement will no longer be available is lazy economic management and cruel politics. Even though the government have never pretended to be compassionate or understanding to those who are doing it tough, they always claim to be good on the economy. But the facts 'bear otherwise', to quote Minister Robert.

We hear all the time, don't we, about how great the Liberals are at economic management and how mature they are when it comes to dealing with your money. Well, that is just another piece of hollow theatre rhetoric from the marketing man masquerading as a prime minister. If they had the slightest bit of economic intelligence, they would listen to the countless economists who say that withdrawing such a substantial amount of government spending will leave an enormous hole in economic activity and an enormous hole in the incomes of businesses and households. Unemployment will skyrocket because these businesses—small businesses—will be unable to keep staff without some medium-term support from the government. In turn, Australians on social security will have less to spend at our local and small businesses. It really does point to shambolic economic management that the government actually thinks that the effects of this pandemic will just stop—finish—being felt 12 months after the world came to a standstill. If the government truly did care about the economy, it would make sure these supplements were extended for as long as the financial hurt was being felt in the community. That would be a win-win situation. It would be good for our economy, and good for our constituents who are struggling to make ends meet.

The bottom line is this: the bill will cut unemployment payments back down to the old Newstart rate from 31 March 2021. If we do not allow this bill passage, the old rate will come into effect at the end of December. The government is holding to ransom Australians in need. Labor will not back down from supporting those who need our help the most. We don't want to see that happen to small businesses and families at a time when they should be enjoying a well-earned rest at the end of what can only be described as the toughest year that I can recall. Nevertheless, we urge the government: search in your conscience, support our amendment on this bill. The amendment will allow the minister flexibility in determining the coronavirus supplement after March 2021. It will help counteract the awful social and economic impacts of the COVID pandemic, which have been exacerbated by the Morrison recession. I genuinely hope that there are members opposite who are smart enough and intelligent enough and compassionate enough to stand there and put politics aside and start helping the people who need their help the most. As I said at the start, we're doing alright: we've got secure jobs, secure employment and secure wages. But there are millions of people in this nation who don't have that luxury, and it is incumbent on us to be the ones to stand up and do the right things for people, and it is incumbent on the Labor Party to continue to stand up for vulnerable people at a time when we can see the government standing on them.

Debate adjourned.

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