Mr BILLSON (12:34 PM) —There has been much said about the term ‘maximum pass through’ in relation to interest rate reductions from the Reserve Bank and their cash rate reductions being fully transferred on to account holders of and borrowers from our banks. There is another maximum pass through though that does not seem to have attracted quite the same attention, and that is the maximum pass through that part pensioners in my electorate expect from the Rudd government in relation to the reductions in deeming rates.

I think two tests need to be applied. Maximum pass through needs to be evaluated in terms of the total pass through and also the timeliness. I have had some analysis done on the delays in seeing interest rate movements pass through in changes to deeming rates and there are plenty of reasons why part pensioners would feel they are not quite getting the support that they would expect from the Rudd government. The delay in seeing these interest rate reductions reflected in reduced deeming rates, and therefore in many cases in improved eligibility for a part pension, is very important for part pensioners in the Dunkley electorate.

It is particularly important when you think that many of them have had their investments frozen. I have been approached by part pensioners. There is a case in particular that is very vivid in my mind where a part pensioner, who is very thoughtful in her budgeting and in her planning of her cash flow for the year, recognises that around Christmas the demands of the season are not the main and sole drain on her resources. It is a time when insurance needs to be paid; it is a time when other major outlays are required of her. She ordinarily would draw those funds from her investments, but this year she is confronted with the trauma and very significant dilemma of not being able to access those funds that would normally be available from her investments to make those significant once-a-year payments over and above her normal day-to-day expenses.

She has approached me looking for some assistance. I have pursued this with Centrelink, which has said that there are really two options available to her. One is to have Centrelink identify her investments as non-performing—which, as a former veterans affairs minister, is something we used to do from time to time when a person had no prospect of those funds being available and certainly no prospect of them earning an income. In this case the income is still thought to be available; the problem is accessing the capital—the initial deposit—that should be available in the normal course of events but, as a result of the way the banking guarantee has been applied by the Rudd government, is not available. She is faced with this dilemma and Centrelink advised me that it is highly improbable that investments of this kind would be recognised as non-performing and therefore excluded from the assets and income test.

The other option was to take out a loan, either privately or through Centrelink by some advance payments. Both of those prospects are not adequate in the eyes of my part pensioner, firstly, because the Centrelink loan vehicle is not sufficient to cover the cost and, secondly, she is concerned about going into further debt at a time when we are encouraging people to reflect on their level of indebtedness—and particularly when she has resources available but she just cannot get to them. This is one of the dilemmas we face and I would encourage the government to take this seriously and respond to the maximum pass through both in total and in timeliness for part pensioners by adjustments in the deeming rate.

Another area I would like to briefly touch on in the time available is the local government elections. I would like to thank all of the councillors from the city of Frankston and Mornington Peninsula Shire Council who have chosen not to continue their municipal careers or those who, through the process of the ballot box, have had that decision made for them. I would like to acknowledge and recognise all candidates who contested the elections. That also is a nourishment for our democratic process. Particularly, I would like to congratulate those councillors who have been elected and I look forward to collaborating with them and the newly formed councils. I would encourage the new councillors to embrace the energy, the insights and the advice of local community organisations, the many selfless civic leaders that give of their time generously, and of the council officers, who have much to offer.

Finally, I would like to close by extending my sincere best wishes for a happy Christmas New Year season. My greetings to all of the Dunkley residents and the many which, hopefully, will come visiting the Mornington Peninsula over the summer break. That includes an encouragement to be thoughtful and mindful of the impact of celebration on those around them. I would particularly like to extend my love and devotion to my delightful wife, Kate, and to Alex, Zoe and Maddie. This will be Maddie’s first Christmas and it is great that Alex and Zoe are helping to inform her how to liaise with Santa at this important time of year. (Time expired).