25.6.12 Pension Assistance

Mr HAWKE (Mitchell) (11:54): I rise to oppose this motion and the absolute nonsense we have just heard from the member for Banks in relation to the so-called 'theft' of money from vulnerable people in New South Wales. First of all I want to outline in response that the cost of this to the average person affected would be between $1.50 and $2 per week in public housing rents, already heavily subsidised by the taxpayer. By the government's own admission, the government has increased pension payments to $154 per fortnight and $156 per fortnight. What costs is the member for Banks referring to when he says that was to subsidise an increase in costs? It is completely disingenuous of this government. They are putting in a carbon tax which will increase prices—in New South Wales the forecast for increase in rents is 1.7 per cent, which would be a cost of $50 million over four years to the New South Wales government. If the federal government did not understand that that cost would be passed on, not just by government but by every industry sector, every small business, every operation in this country, why are they increasing compensation payments?

These pension increases are not some historic reform—this motion says 'historic pension reforms'. This did not come out of the blue. These increases in the pension are to subsidise people for the cost of the carbon tax. That is what these are for. They are not for any other reason. The 1.7 per cent increase in rents has to be paid for by somebody. It is not going to be subsidised by the taxpayer because, as the New South Wales government has outlined, they have a program to improve public housing in New South Wales—to increase the number and quality of available places and ensure that more people can access it. Under this budget there will be more private rent subsidies, with around $50 million of support; $19 million for 21,000 householders to access affordable tenancies in the private rental market; and $134 million to provide specialist homelessness services. The government wants to come in here and pretend that the state government should not pass on the costs that the federal government have imposed on them. That is completely unrealistic. It is not happening in any sector.

In the electricity sector, for example, we know New South Wales prices have increased by 18 per cent—electricity bills this year are up 18 per cent. The estimate, conservatively, is 8.9 per cent because of a carbon tax. Almost half of the increase in prices from 1 July is because of the carbon tax. If it is good enough for the electricity sector and every other sector to pass on and the government to say, 'We are increasing your pension by this much to pay for it,' then they have got to say that 1.7 per cent in the matter of rents is going to be passed on by the state government as well. It is going to happen all around the country. It is completely disingenuous for this government to suggest otherwise.

It is disingenuous for the member for Banks to come in here and say, 'We've been honest from day one.' 'Honest from day one' prior to the last federal election would have been for the Treasurer or the Prime Minister to look into the camera and say, 'We are introducing a carbon tax that will push up the price of public housing rents by 1.7 per cent.' That would have been honest. Instead we heard from this government: 'We will not be introducing a carbon tax,' and, 'There will be no carbon tax under the government I lead.' That was the message before the election.

Wayne Swan said it was absolute nonsense that we would be introducing a carbon tax prior to the election. Yet they bring it in, and costs will be ratcheted up across the economy as a deliberate result of their carbon tax and their policy. Then they have the hide to come to this chamber and put a motion up like this saying: 'People are going to pay more. This is outrageous! Oh, isn't this terrible?' It is a direct result of the government's own policy that these vulnerable people will be paying more.

For the first time in New South Wales we have terms like 'energy poverty' coming into use across Sydney. I know that some of the members sitting opposite on the backbench understand what I am talking about. We have energy poverty coming into Australia because of the mismanagement of our public utilities, the mismanagement of government enterprises and, now, the world's biggest and most punishing carbon tax.

If the member for Parramatta wanted to really do something to assist Australian pensioners then she would propose, of course, standing by the member for Griffith, abolishing the carbon tax and moving to an emissions trading scheme or another model. That is what the member for Parramatta would do—not stand by this failed government with its failed carbon tax. The New South Wales government is to be commended for being realistic and for keeping their finances on a sustainable footing. In particular, the Minister for Families and Community Services is to be commended for doing her job to ensure that all vulnerable people in New South Wales get a fair deal. Everything has to be paid for. Governments can only continue to provide services on a sustainable footing. The carbon tax is an unsustainable tax for Australia. It ought to be removed, and vulnerable people will suffer if it is not.