David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to Minister for Finance, Senator Gallagher. Yesterday in response to a question from Senator Cash you said:

We are dealing with an inflation challenge at the moment, and no-one is pretending that wages should be growing at the pace of inflation.

Can you confirm it's the government's position that you don't expect wages to grow at the pace of inflation?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I thank the senator for the question. The point I was making yesterday was that we don't expect wages to grow at the rate of inflation as it currently is now. You'll see from the budget papers—I think it's in the 2024-25 financial year—that we are expecting wages to move ahead of inflation.

That is what the budget papers say, but I was responding to a question about wages moving at the rate of inflation as inflation currently is. I think you wouldn't find anybody, including on your side, that would be arguing for wage increases in the order of eight per cent, I would imagine—because that would cause other problems that we are trying to avoid.

At the moment wages are not impacting on inflation. The increase in inflation is largely down to energy costs caused by the war in Ukraine and by some of those supply chain shortages that we have seen coming out of the pandemic. We are taking a responsible position in relation to wages. We want to get wages moving—that's why we have the industrial relations bill before the parliament. We want to see an end to the wage stagnation decade that was overseen by the former government. We've made no secret that we want to deal with wage inequality in low-paid, feminised industries, and the budget papers clearly outline the wage forecasts over the forward estimates. They will remain below inflation for the first two years and then they will gradually increase to a point above inflation in that third year.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Fawcett, a first supplementary question?

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

The Australian public are also dealing with the reality of the current situation where they are seeing costs going up, and they will recall the promise made before the election this year on 11 May by the now Minister for Employment and Workplace Relations, who said, 'Labor wants to make sure that wages keep pace with the cost of living'. Can you confirm that Labor has abandoned that promise made to the Australian people made before the election to keep pace— (Time expired)

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

I think you'll see from our budget papers that we do want workers to get wage increases that help them deal with the cost of living. The senator is incorrect when he asserts that. There has been no change in position from this government. We are dealing with an inflation problem in this country right now, in case anyone over there hadn't noticed. If you haven't noticed—

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

Oh, we've noticed.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

You've noticed, have you? The reality here is that we are trying to deal with the inflation challenge and we are dealing in a sensible and responsible way with the after-effects of a decade of wage stagnation. You are the party of wage stagnation. The nerve of you to stand up and challenge us on our position to get wages moving—

Sue Lines (President) Share this | Link to this | Hansard source

Minister, please resume your seat. Senator Henderson, on a point of order?

Sarah Henderson (Victoria, Liberal Party, Shadow Minister for Communications) Share this | Link to this | Hansard source

Once again, I would draw the minister's attention to the fact that she needs to make her comments through the chair.

Sue Lines (President) Share this | Link to this | Hansard source

I believe the minister is mostly making her comments through the chair. I also ask those on my left to stop calling out.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

In fact, in the six months since we came into government, we have done a number of things—and I'm sure I will get opportunity to continue on this—including supporting increases to the minimum wage that you never did. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Fawcett, a second supplementary question?

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

I again go to the Australian public's expectation that there will be consistency before and after the election. On 20 May the now Prime Minister said, 'It's not bad luck, it's bad policy that wages aren't keeping up with the cost of living.' Will you now also label this situation your bad policy as wages are not keeping up with inflation, rather than blaming circumstances?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Link to this | Hansard source

That's right, don't deal with the economic reality right now! I would say, in response to that question—vote for the industrial relations bill. Vote for it. That's the single biggest thing you could do right now to help us get wages moving. That's what you should do. You've overseen a decade of wage stagnation. You're now saying you want to see wages keep up with the cost of living. Well, support us, walk with us! Stop being the party of Work Choices. Stop being the party that want to keep wages down. Remember that? Stop wanting to make childcare workers, aged-care workers and those on minimum wage not get a decent pay rise. Stop arguing about things. When in government, you had that section about the importance of low-paid work—a whole section—in your submission to the Fair Work Commission. That's your record. We're trying to get wages moving. We're proudly standing next to working people to argue for that. Join with us and support the legislation. (Time expired)