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

I move:

That the Senate take note of the answer given by the Minister for Immigration and Citizenship (Senator Evans) to a question without notice asked by Senator Coonan today relating to the cost of living.

Francis Bacon said, ‘Trust not servants who mislead you,’ and it is very clear that the Australian public cannot trust Mr Rudd and the Labor government, because the public were misled at the last election. They were misled in a number of areas but principally they were misled that the Rudd government was going to do something about rising grocery prices, that the Rudd government was going to do something about rising fuel prices and that the Rudd government was going to do something about rising gas prices. They were not misled that the Rudd government was going to do something about rising house prices, because it has engineered an economic slowdown that has seen the price of houses fall for people, leaving many in a situation of negative mortgage equity.

This is a government that cannot be trusted. They have succeeded in failing all the tests put before them by the Australian people. What has Mr Rudd done about this? Mr Rudd has done a Pontius Pilate: he has washed his hands of any responsibility by saying, ‘We have done as much as we physically can to help the family budget.’ Ms Macklin, the minister for families, has acknowledged that people are doing it very tough. In a recent opinion piece, she said:

Pensioners are doing it tough. With the cost of food, electricity, gas and petrol going up it’s getting harder and harder for people on pensions to pay the bills. They tell me time and time again how difficult it is ...

My message to the government is this: the people of Australia have also been telling me about the hard heart that lies at the very core of this government. They say that the government do not care about the plight that many, who are doing it tough on fixed incomes, are dealing with and that the government have given up on trying to redress the imbalance that they suffer at a time when inflation is rising—and it is the highest it has been in 16 years. And what is the Rudd government’s solution to rising inflation? They put the prices of things up.

Anyone who knows a little bit about economics knows that inflation is measured by rising prices. Putting prices up does not solve any issues with inflation; it contributes to it. It is a disgraceful clutch, a grab, at money to put extra pressure on Australian families so that the Rudd government can put more money in its coffers for its own re-election at a later time. All the while that this government fiddles, the finances of the pensioners and carers of Australia are burning, let me tell you.

In nine months of the government, who have to take ownership of these problems because they have handed down their own budget, they initially sought to take away the one-off bonus payments to pensioners and carers, to the great shame of many. The only possible things that they have implemented are to put up the utilities allowance and the telephone allowance, both of which were copied from coalition policies of the last election. They have done nothing else; there is nothing new. They were elected on the basis of having a plan. They have no coherent plan. They have a plan to have a plan at some stage in the future. We know that pensioners are doing it tough and we know that carers are doing it tough, but nothing is being done by this very tough and careless government. They have promised that, once again, they will have a look at these things but they have not done it. They have no real strategy about dealing with it until 2010. They are having review after review. This is what the people of Australia tell me when they stop me in the street: ‘Will you please replace this uncaring government? Will you please get back into control of Treasury so you can help us out over the course of time?’ This government have not assisted anyone who is doing it really tough.

Whilst they have not made any meaningful impact on assisting people, they have managed to spend millions upon millions of dollars on telling people, through a website, what prices were 30 days ago. I guess this is so they can track inflation themselves, by calculating the cost of goods today versus the cost of goods 30 days ago. I read the other day that the much vaunted GroceryWatch website is now getting less than a few hundred thousand hits, mostly, I guess, to see if all the ridicule of it is quite appropriate. There are already calls for it to be shut down. They are a government who allegedly care. What they care about is spin, and they have no substance whatsoever.

What about their claim that fuel prices were going to drop under this government? Fuel prices reached record highs under this government, and what did the government promise to do? Nothing. It was up to the coalition to champion the cause and fight against high fuel prices for the men and women of Australia, including pensioners, who are doing it tough. What else have the government done to ease the cost of living for people? As perverse as it may sound, they are trumpeting today how many new jobs have been created in the manufacturing sector, and yet in their budget they were forecasting that over 100,000 jobs would be lost—they have budgeted for 100,000 jobs to be lost. I note that an additional estimate, I think put out by the RBA— (Time expired)

Claire Moore (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

It is very worrying that in this place we actually descend to the level that has just been done in that response. In terms of process, over the last nine months there has been constant attack by the opposition about lack of action from the government—not taking into account the years of lack of action, refusal to answer questions and refusal to respond to any of the issues about pensioners that we were raising during that process. I cannot believe that Senator Bernardi got up in this place and ran the argument that we refused to actually look at the one-off payments when we all know that it was a clear budget scare campaign, used in a very open way.

Before the budget was brought down, the opposition tried, through media scare campaigns, to terrify the community, elicit a response from the government—which was moving towards its first budget—and have leaks from the government. We assured the people of this country—in particular the pensioners of this country—that we were listening to their concerns. What was happening with this particular attack about the one-off payments was that the government were looking at the options they would take and were goaded by the opposition leading up to it. They were trying to create fear amongst the people we were trying to support. In the end, when the budget came down, there was a clear understanding that the utilities allowance, which Senator Bernardi mentioned, would continue. We actually came forward with the process of continuing to work with pensioners to ensure that there was going to be a response to their needs.

We did not pretend that there is a simple answer—at no time has there been any pretence from this government that it was going to be a simple answer—but what we said was that we were going to give the immediate payment through the budget process, not in response to the scare campaign from the opposition but rather to try and work effectively to respond to some of the issues that came out in the Senate inquiry into the cost of living for older Australians. We were listening to that. We were not listening to the attempts to bring down a government budget before it was produced. What we said was that we would take the immediate steps through the budget process and that then, through the establishment of the Henry review of the whole process of taxation and expenditure from the government, there would be a dedicated process, looking in particular at the issues of older Australians. Senator Bernardi knows this. This is what is most offensive in the process that is being used by the opposition. They know the process that is in place. They actually know how complex the social welfare system that is going through is; they know that. But still, to gain a cheap response and also to scare the people about whom we should be concerned, they consistently come forward with short media grabs to try and create a more negative process.

In the Henry campaign, the process is being put in place across the whole of the economy and also, most particularly, in response to what we have been hearing this afternoon about the attacks on pensioners and people who are doing it tough. That is being handled through the Harmer subcommittee of the Henry taxation review. On that subcommittee we have a number of people from across the whole process.

Opposition Senators:

Opposition senators interjecting—

Claire Moore (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

We hear that reviews are not good enough. Yes, it was good enough for 12 years to come up with a bandaid response in budget after budget and one-off payment after one-off payment, with no attempt to look at the whole system, no attempt to plan for the future, no attempt to engage with the people about whom we are speaking—the very people who will actually need to be supported by the process. The process that has been put in place by this government, which Senator Evans referred to in his answers, is going forward using the people who have the need and actually working with them to see what the long-term solution is, not a short-term bandaid. We know that, the more you do not address the key problem and the more you take a short-term response, the harder the program and the problem are going to be. That is what we have lived with in this country for 12 years: we have not sought to find an overall solution to balance the needs and to actually engage the whole process to look at what can be done for the people who have the most need. We have tried to get the good news program, the good news headline, so that we can feel good for a couple of days while, at the same time, taking every opportunity to throw dust in the eyes of the people who are trying to do a longer term response.

No-one pretends that this is easy. Minister Macklin has been open about how she understands that people are suffering, and that has never been denied. But continuing to put the bandaid on it, as some people in the opposition think is the way to go, is not the best response. As long as we continue to scare, it will not— (Time expired)

Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

I also seek to take note of the answers from Senator Evans. It has been heartrending to hear all these comments about the government listening to the concerns of pensioners and others on fixed wages. We even had Minister Evans tell us that pensioners are doing it tough. In that, he is completely agreeing with the Minister for Families, Housing, Community Services and Indigenous Affairs, Minister Macklin, who on Sunday wrote a newspaper column to tell the world the revolutionary piece of information that pensioners are doing it tough. So we have all this wonderful listening and empathising going on. What we do not have is any action.

I was somewhat concerned when Minister Macklin told the 4½ million Australians whose lives are affected by the pension system that we need to think about what the system will look like in 20 years. That would be wonderful—let us find out what the system will look like in 20 years—but what does that do for the pensioners and others on a fixed income who are struggling right now? As Senator Moore pointed out when we did the Senate inquiry into cost of living pressures on older Australians—whose report we actually brought down in March this year—we knew then that pensioners were doing it tough; it was very obvious that pensioners were doing it tough. Five months later, the minister announces to the no doubt breathless media that pensioners are doing it tough and says: ‘But just wait. We’re in the middle of a process. It’ll all be all right. The Harmer review will’—

Simon Birmingham (SA, Liberal Party) Share this | Link to this | Hansard source

Senator Birmingham interjecting—

Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

There will be a lot more listening and empathising going on, no doubt, Senator Birmingham, whilst this process happens. The Harmer review, sometime next year, will produce a result from a process. They have not actually said it will—

Simon Birmingham (SA, Liberal Party) Share this | Link to this | Hansard source

Senator Birmingham interjecting—

Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

No, actions and results are different; we are talking about a process, listening and empathising—great stuff, but it is not washing and it will not wash with the pensioners and others on fixed incomes in Australia. They are saying, ‘We hurt right now. You knew in March this year that we hurt and you have done nothing about it and are continuing to do nothing about it.’ The crocodile tears from Senator Evans do not help—the righteous indignation, as though something is actually happening because you get sad and upset and let the world know that, ‘Gee, it’s tough out there.’ What does that do for the pensioners? Nothing has changed.

In the past two weeks I have received over 700 letters from pensioners in Queensland explaining the difficulties that they face right now. There is no reason whatsoever why something cannot be done to help couple pensioners and, in particular, single pensioners as the rents go up, as fuel prices go up, as grocery prices go up, whether you are watching them or not. It is particularly the single pensioners who hurt more, because you cannot rent half a house, no matter how high rents go; you cannot make that economy in your lifestyle.

Simon Birmingham (SA, Liberal Party) Share this | Link to this | Hansard source

They’re lucky they have a process, then!

Sue Boyce (Queensland, Liberal Party) Share this | Link to this | Hansard source

They are. Perhaps we should develop a process for renting half houses—do you think so, Senator Birmingham? You cannot drive half a car no matter how high petrol prices go. So there is an argument and action is needed right now to help the single pensioners who rely on 56 per cent of a couple pension rate. By all means let us look to the future but let us not just look to the future. Everywhere I go I hear pensioners saying: ‘When will the Prime Minister act? He talks and he listens; he’s a dud. All he does is listen. There is no action. Please help us now.’

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

Mr Deputy President, I congratulate you on your new position in the Senate. I rise on the same matter of pensions and benefits. Before I outline some of the details of the start that the Rudd government has already made, contrary to the suggestions of some of the senators who spoke earlier, can I first express my surprise at the sheer audacity of the content of the debate so far from opposition senators. Senator Bernardi suggests that there has been spin but no substance or action in this area. Let me address that point first.

While there is more to do and the government is concerned about the pressure of inflation on seniors, the government has made a start. We have provided $1.4 billion in extra support to seniors. A $500 bonus was paid to 2.7 million senior Australians. This came on top of our commitment of over $5 billion over five years to increases in a number of areas—to increase the utilities allowance and seniors concession allowance from $107.20 to $500 a year and to increase the telephone allowance for those with a home internet connection from $88 to $132 a year, beginning 20 March. The first quarterly instalments of these payments were made in March and in June. These increases are ongoing and locked in for the future, not like the past Howard government’s one-off payments. We are also examining indexation arrangements for the age pension.

But let us contrast that with what has been put forward by the alternative government to date. Senator Boyce gave me one extra policy idea in the debate today—let’s look at renting half a house. While I am sure she made that comment in part jest, as a quip in this debate, if you look at the other alternatives that have been canvassed by our alternative government you see there is an enormous void. We did originally have the shadow minister suggest that we look at the indexation issue, but within 24 hours we had the alternative Prime Minister, the Leader of the Opposition, saying, ‘No, we’re not talking about doing that.’ That is the extent of the alternative government’s position in this area. Just look at that when you consider the audacity of this being the one issue that the opposition chose for debate today arising from question time.

Certainly we do have a range of issues under review, because we do have a longer-term concern with how we structure our welfare and social security system. We do want to put in long-term, economically manageable improvements for the wellbeing of our seniors and other social security recipients. We do want to keep in mind how that relates to the tax system. We do not want to follow the history and the pattern of the Howard government of one-off payments that were not costed or accounted for in following years, one-off payments that often were introduced in the period before an election and were not maintained for the period following an election. It was an ad hoc system.

Interestingly, ‘ad hoc’ relates to other issues that were canvassed in question time today on industry policy. I heard questions on the car industry coming from the opposition. Again, the audacity of the opposition in that area astounds me. If you look at the Howard government’s history of industry policy and all of the ad hoc measures particularly with respect to the car industry in South Australia—and Senator Minchin has come back into the chamber—the audacity of questions today in relation to the car industry was astounding. A long-term vision, a long-term plan, which is what the Rudd government is seeking to establish, is critical there as well.

But, going back to the pensions issue, let me stress that the government knows that many pensioners are doing it tough, with cost of living pressures resulting from the rising cost of groceries and other bills. Over the year to June 2008, food prices rose by 3.9 per cent. Fuel rose by 8.7 per cent in the last quarter and by 18.4 per cent over the year to June 2008. Some of this is the legacy of poor economic management by the former government. As responsible economic managers, we know that we must seriously address some of these issues. (Time expired)

Judith Adams (WA, Liberal Party) Share this | Link to this | Hansard source

Mr Deputy President, may I formally congratulate you on your new position. I rise today also to take note of answers given by Senator Evans. Senator Collins is very concerned about why we should choose such a topic as pensioners to discuss. I cannot believe that she thinks that we should have discussed something else. This is incredible. Australian pensioners are struggling to survive. With rising petrol and grocery prices and rising inflation rates and insurance premiums, most Australian pensioners are far worse off than they were a year ago.

As a member of the Senate Standing Committee on Community Affairs, which inquired into the cost of living pressures on older Australians, I attended all the committee hearings. We produced a report—as Senator Boyce said—and called it A decent quality of life. A lot of thought went into this title. We believe that our older Australians, pensioners and carers are very important. Today I want to speak especially about Aboriginal pensioners who live out in the desert, because they are really having a very hard time surviving. These people are very important Australians, and to think that one of our senators cannot understand why the opposition has decided to address this situation is rather astounding.

In the West Australian on Monday was the headline ‘Exorbitant food prices mean some Aboriginals go hungry’. Last week the Senate Select Committee on Regional and Remote Indigenous Communities visited Balgo, Fitzroy Crossing, Derby and Broome. I have some quotes here from a little community out in the Tanami Desert called Mulan. That is very close to the Northern Territory-Western Australian border. These people, 160 residents, are among the country’s poorest and many are going hungry a couple of days a week. The local Assembly of God pastor says that the extremely high prices at the Mulan Community Store were hurting everyone but particularly the elderly. He went on to say: ‘Everyone shares food. It is part of our culture. But the old people will give away their food to see the children eat.’ Several pensioners he knew were forced to survive the last few days before their next pension payment by eating homemade damper or they simply went hungry. Is this what we want for our pensioners, and especially those that live in remote areas?

The majority of Mulan’s residents on welfare benefits receive between $200 and $250 a week and it is virtually impossible for them to live in the community and eat a healthy diet. Diesel costs $2.80 a litre in this area and the nearest regional centre, Halls Creek, is an eight-hour round trip along the corrugated Tanami Track. People have little choice but to shop at the Mulan Community Store. Just to give you an example of how much things cost there, half a pumpkin is $14.42, 1.7 kilos of sausages is $16.42, 1.4 kilos of chops is $33.92 and 1.3 kilos of potatoes—6 potatoes—is $8.71. Bread is $3.50 a loaf and four ears of corn is $15.50. These are the issues that these people have to deal with. Coming from a rural area myself, I am fully aware of the cost of the groceries going up in our local community and in places further out. The cost at Balgo the other day was $15,000 for the truck to come to the community store with all the commodities that the community needed for a week—$15,000 to pay for the freight. Of course, the freight cost has to be passed on to those who consume the goods.

The other thing that is really worrying me at the moment for Western Australia is the tax that is going to be placed on condensate. That is going to raise the cost of gas. (Time expired)

Question agreed to.