Jacinta Collins (Victoria, Australian Labor Party) Share this | Hansard source

Senator Williams made some very good points in his first take note speech in this chamber. The first is to remind us of the tough times that are ahead for us, and the second is to invite us to show compassion to people who are finding it very tough living on pensions. But, in reflecting on those two issues, I have to correct the record. I have to address some of the comments that Senator Coonan made in her contribution today because they are simply not true. She suggests that the Rudd government has done nothing in this area. I invite anyone to look back at the budget and at the $900 increase that was delivered through the budget for people suffering in these times and under circumstances related to the pension. As has been indicated on several occasions, the utilities allowance was increased to $500 and the $500 bonus was paid through those measures. So when Senator Coonan says, ‘Heaven help age pensioners,’ we should reflect on how those initiatives compare with what occurred under the Howard government.

One would believe from a lot of the rhetoric coming from the other side that the Howard government have a reasonably responsible history in this area. This is clearly not the case. I will come in a moment to their backflips and stunts in recent months in this area, but let us look at the period of the 12 years of the Howard government—the Howard government that introduced the GST and had to be drawn kicking and fighting to a one per cent increase in base pension arrangements as compensation for the GST. So, yes, pensioners are doing it tough and, yes, their plight is related to current economic circumstances, but it is also related to a 12-year period of neglect under the Howard government.

This brings me now to recent stunts—and I think that is really the only way to describe the way the opposition’s leadership has dealt with this issue in recent months. Back in May we had the shadow minister, Margaret May, suggest that a base increase in the pension would occur. We then had the leader, Brendan Nelson, immediately deny that that was opposition policy.