Senate debates

Monday, 16 June 2008

Ministerial Statements

Pensions and Benefits

4:02 pm

Photo of Helen CoonanHelen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | | Hansard source

by leave—I move:

That the Senate take note of the document.

Yet again, with this ministerial statement, the government has proved to the Australian people that it is a government paralysed by inaction, putting off decisions with endless reviews and completely devoid of ideas to deliver certainty and security for pensioners and carers. The statement, so far as I can tell, contains nothing new. Frankly, I question why it was given, for it tells us nothing more than we already knew in the May budget. Prior to that, there were of course press leaks of budget cuts that would seriously affect our most vulnerable citizens—our seniors and carers. Both the current Prime Minister and his Minister for Families, Housing, Community Services and Indigenous Affairs, Ms Macklin, hastened too slowly, may I say, to try to take the pressure off the government by assuring the pensioners and carers that the bonuses would be paid this year but would be subject to review as part of yet another review. Frankly, the only reason the government recanted on its proposals to cut the bonuses this year was the action of the opposition, backed by a very strong outcry from both pensioners and carer groups in the community, reflected in widespread media coverage.

Under the coalition’s so-called ‘neglect’ that has been referred to in the statement, the Howard government increased employment by up to 2.2 million new jobs, increased real wages by 21 per cent and doubled the real net worth per head of every person in the country, on average. We actually paid carers and seniors bonuses that were not paid before, and we did it for four years. We increased pensions to 25 per cent of MTAWE, male total average weekly earnings, which had never been legislated before. In the ministerial statement, the minister describes what the Howard government did for the last four years in paying bonuses to seniors and carers as ‘giving them no financial security by paying annual bonuses’. I would have thought that there was a lot more financial security from an annual bonus that you know will be paid and that lets you plan and purchase items from a lump sum that are simply unaffordable out of a pension than the uncertainty and insecurity which is inherent in the kind of review that the minister is now proposing. The promise of a review is, in short, a cruel blow to the most vulnerable.

The carers and seniors of this country had more security under the Howard government than they had before and, frankly, than they will likely have in the future under this Mr Rudd ‘review everything’ way of governing. Why was there no indication or even a glimpse of a policy on seniors and carers before the last election? If the then opposition truly cared about these very special Australians, surely they would have outlined prior to the election their policy views on how their payments should have been handled. But, no, silence reigned supreme on this issue, including at the 2020 Summit, after they had become the government. In fact, there was no real criticism of the Howard government’s actions in relation to annual payments to seniors and carers prior to the election. By tying any future policy to the outcome of the review that the minister has announced will report to her by next February 2009, the minister is again exposing carers and seniors to an uncertain future, quite the opposite to the claims in the ministerial statement.

Frankly, how can you trust this review? And how can you trust this government? What carers and pensioners can trust is the record of the coalition, which is real. We did not just talk; we delivered. Between 1996 and 2005 the real disposable incomes of the poorest 20 per cent in our society—the carers, the pensioners and seniors—increased by 25 per cent. There was a 25 per cent real increase in the effective income of carers and pensioners, and those statistics come from the independent and authoritative National Centre for Social and Economic Modelling at the University of Canberra. When we were in government we consistently delivered a better standard of living to Australia’s carers and pensioners. This is not the last word. I believe they deserve better. We in the opposition will do all we can to ensure that their financial futures are sustainable and to recognise the struggle they have to make ends meet. They are entitled to feel very let down by a do-nothing government addicted to reviews but paralysed when it comes to real action.

4:08 pm

Photo of Cory BernardiCory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | | Hansard source

I rise to also make some comments on the ministerial statement about certainty and security for seniors and carers. In associating myself with all of what Senator Coonan has said, I would like to also express some concerns on behalf of carers and seniors—firstly, on behalf of carers, who do such a magnificent job in our community. I genuinely believe that governments of all persuasions seek to ensure that carers are recognised for what they do in our community, but we have different ways of going about it. The fact is that the previous government, the Howard government, provided a great economic environment in which there was some security and some certainty that bonus payments would continue to be paid. It was our election commitment to increase allowances for carers and for seniors. Both policies having been adopted by this government, one of the problems that has not been faced is the complete lack of certainty that causes so much apprehension in the broader community. I think the government has underestimated the trouble and worry this lack of certainty and surety, in being able to plan for the future, causes for those who are amongst the least fortunate or are facing the most difficult circumstances.

The minister has recognised that rising fuel and grocery prices have had a severe impact on carers, pensioners and seniors. But in doing so she has also recognised that this government has done absolutely nothing about reducing the price of fuel, which was one of its election promises. It has done absolutely nothing about reducing the price of groceries, which was one of its election promises. We have a government that is simply committed to watching and having reviews. We have heard in this chamber, and we heard during Senate estimates, that this government is committed to making decisions and actually governing. But that is just rhetoric. What we have seen is review after review after review. And when they do not like the outcome of their reviews, or the advice that they receive, they make a completely different decision that suits their political agenda.

I believe that this government does not have a direction or a clear focus; it is simply looking to buy time as it finds what it would like to implement to satisfy its vested interest groups. I say that that is not good enough. Carers and seniors deserve more certainty. They certainly do not deserve the lip-service that is being given to looking after their interests by Minister Macklin. They deserve to know that in the future they are going to be able to afford to put food on the table, to be able to look after their loved ones, to be able to drive to the shops and that they are not going to be left in the lurch by a government that simply does not care.

Question agreed to.