Sharon Grierson (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

Like all cities, the city I represent, Newcastle, is indeed a unique place. But, interestingly, our demographics reveal that we are quite reflective of the typical Australian communities where typical Australian families live and work. The last census revealed that average weekly earnings in the Hunter region were $836 a week, just below the New South Wales average. Almost 15,000 households in the Newcastle electorate were purchasing their dwelling, with a median monthly home loan repayment of $1,343.

Those 15,000 householders in my electorate are among the millions of Australian households who are relieved that the Reserve Bank has announced a 0.25 per cent cut in the official interest rate, the first cut for seven years. This very welcome cut will put about $42 a month back into the pockets of average mortgage holders. The Treasurer’s determination to enlist the goodwill of the banks to pass on the rate cut in full has been quickly responded to, with most, including the Newcastle Permanent Building Society, Hunter United Employees Credit Union and the Greater Building Society, expected to reduce mortgage rates within the month. Newcastle families deserve this rate cut and rightly expect their banks to pass it on to them promptly and in full. I congratulate our local banking institutions for doing so.

Inflationary pressures have meant that many families in Newcastle and beyond are struggling to keep up with the cost of essentials like groceries, petrol, education and utilities. Ten interest rate rises in a row under the previous government have added around $400 a month to the typical mortgage and have meant that family budgets have been squeezed to breaking point. The stress on households has been reflected in the number of writs of possession issued in our region—about 24 a month, or almost one a day, over the two years to February 2008. As reported in the Newcastle Herald this week, fortunately not all of those writs are executed, but it remains a personal tragedy when even one family loses their home. Being able to access financial counselling and legal advice when mortgage stress starts to overwhelm certainly remains imperative, but the most important thing our government can do for mortgage holders is to keep a check on inflation through responsible economic management. Having inherited underlying inflation running at a 16-year high of 3.6 per cent, the Rudd government has done this by producing a budget that got government spending back under control after the blow-outs of the previous government.

Our budget produced a $22 billion surplus as a buffer against global economic instability and to provide for a productive future. By investing in the infrastructure that we need to free up our roads, rail and ports and by investing in a skilled workforce and an education revolution, we will continue to put downward pressure on inflation and interest rates while keeping the economy strong and growing. But we can only do this if the opposition passes our budget, and I urge them to do so promptly.