Mitch Fifield (Victoria, Liberal Party) Share this | Link to this | Hansard source

My question is to Senator Conroy, the Minister representing the Treasurer. Can the minister confirm that the March Sensis consumer report, released today, and the March Westpac-Melbourne Institute consumer confidence index both show a massive plunge in consumer confidence to Keatingesque lows? How do the survey findings, which reflect cost of living concerns, square with Mr Rudd’s promise to reduce petrol and grocery prices?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank the senator for that question. This government understands that there are a lot of families in Australia working hard but still doing it tough. We know the costs of essentials like groceries, petrol, child care and servicing the mortgage have all skyrocketed in recent years. The CPI has risen by nine per cent over the last three years but fruit and vegetable prices have gone up 20 per cent. Child care has gone up 30 per cent and petrol has gone up 29 per cent, and that is before the recent overnight rise. The fact that the price of such essential items has increased more than average prices very clearly demonstrates the impact of inflation on working families.

In its first 100 days, the government has moved to implement changes to address these cost pressures. The ACCC has been empowered to ensure that Australian families do not pay one more cent at the bowser or the checkout than they need to. The government has put this into action by appointing the first petrol commissioner and granting the ACCC the power to monitor petrol prices, something that those opposite refused to do for 11½ long years. They refused point blank, despite calls to do it.

In February, the government released the terms of reference for the ACCC inquiry into whether the grocery industry is operating fairly. The ACCC has already released an issues paper and it is due to provide its report to the Assistant Treasurer by the end of July this year. Unlike senators opposite, we on this side of the chamber understand the multitude of financial pressures that families confront around the kitchen table every day. Families are struggling to make ends meet after 11½ years of reckless spending by the former government. The Rudd government, though, will help ease these pressures by cutting out-of-pocket childcare costs, by lifting the childcare tax rebate from 30 per cent to 50 per cent up to $7,500 per child to be paid quarterly, by introducing low-tax First Home Saver Accounts, by helping to build thousands of new rental properties leased at 20 per cent below market rents and by providing a 50 per cent education tax refund to eligible families to cover the cost of education for their children.

It needs to be remembered that core inflation is at a 16-year high. This parting gift from the former government is eroding savings and chewing into family budgets. The opposition are the party that let inflation build, ignored RBA warnings and then, despite 11 interest rate rises in a row, told families that they had never been better off. The Rudd government, by contrast, is working hard to address these challenges and ease the pressure on working families.

Mitch Fifield (Victoria, Liberal Party) Share this | Link to this | Hansard source

Mr President, I have a supplementary question for the minister and his autocue. When exactly is the government going to take responsibility for the faltering economy and the rising cost of living?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

We have a situation here where the opposition is almost completely and utterly unable to decide on its line of attack. On the one hand, the economy is fine and we have inherited a magnificent, robust economy. On the other, we are killing it. I just wish Senator Fifield and the shadow Treasurer would decide which of these it is, because, after 11 interest rate increases in a row under their government, is it any surprise that consumer sentiment and confidence has hit rock bottom? There have been 11 in a row under their government. This is hanging around their neck and they have to decide what their line of attack is.