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Wednesday, 17 August 2011
Page: 4675

Aged Care

Senator POLLEY (Tasmania—Deputy Government Whip in the Senate) (14:57): My question is directed to the Minister representing the Minister for Families, Housing, Community Services and Indigen­ous Affairs, Senator Arbib. Can the minister outline to the Senate the government's response to the 2011 Productivity Commiss­ion report Caring for Older Australians, received by the government last week? How does it relate to the government's broader agenda on aged care and assistance for pensioners and seniors?

Senator ARBIB (New South Wales—Minister for Sport, Minister for Indigenous Employment and Economic Development and Minister for Social Housing and Homelessness) (14:57): I thank Senator Polley for her question and for her ongoing interest in aged care issues. The Gillard government last week released its response to the 2011 Productivity Commission report Caring for Older Australians. The report provides analysis of the aged care sector and detailed proposals for reform. The Prime Minister has said the recommendations will be considered as part of the government's broader agenda and that our response will be guided by four principles: first, every older Australian has earned the right to access quality care and support appropriate to their needs when they need it; second, older Australians deserve greater choice and greater control over their care; third, funding arrangements need to be sustainable and fair both for older Australians and for the broader community; and, fourth, older Australians deserve to receive quality care from a skilled workforce.

The government is determined to make these necessary reforms to our aged care system. This government has the runs on the board when it comes to aged care and when it comes to the pension. After a decade of inaction by the coalition, federal Labor overhauled the pension system to make it adequate and sustainable for the millions of age and disability pensioners, carers and veterans. Our pension reforms have deliver­ed increases for maximum rate pensioners of $128 a fortnight for singles and $116 a fortnight for couples combined—a historic change. These reforms are on top of the $400 a year increase in the utilities allowance we provided to pensioners. We have also introduced national transport concessions for Seniors Card holders. On top of these reforms we have now delivered on our election commitment with a new work bonus allowing pensioners to keep more of the money they earn from part-time work. Unlike those opposite, Labor has acted—acted for pensioners and acted for seniors—and will continue to do it into the future.

Senator POLLEY (Tasmania—Deputy Government Whip in the Senate) (14:59): I have a supplementary question. Can the minister explain to the Senate why it was necessary for federal Labor to overhaul the pension system and are there any threats to the future funding of aged-care services in Australia?

Senator ARBIB (New South Wales—Minister for Sport, Minister for Indigenous Employment and Economic Development and Minister for Social Housing and Homelessness) (15:00): After years of neglect by the Liberals in this area—just ask Mal Brough; he went into cabinet and was shot down while trying to get an increase for pensioners—Labor acted. The biggest threat to aged-care now is the Liberal Party senators and members in the other place and their $70 billion black hole. Where is that money going to come from, Mr President? Let me tell you: great big cuts to services. That is where it is going to come from. And we know the Leader of the Opposition has form. He has form on this: when he was the minister for health he cut $1 billion out of the health system. He cut the health system, and the senators opposite and the former government cut back on funding to education, they cut back on funding to higher education, they took $3 billion out of housing—and this is what they will do again to our seniors; they will cut back on services. (Time expired)

Senator POLLEY (Tasmania—Deputy Government Whip in the Senate) (15:01): My second supplementary question is this: is the minister aware of any recent comments which threaten the livelihood of older Australians?

Senator ARBIB (New South Wales—Minister for Sport, Minister for Indigenous Employment and Economic Development and Minister for Social Housing and Homelessness) (15:01): You do not have to go far to find comments about the $70 billion black hole that the Liberal Party now face if they become the government and last night on the ABC's 7.30 Report we saw the best indication from the shadow Treasurer, who appeared on it. There was a question about pensions and he tried to dodge the question. The question was pretty simple: 'So, Mr Hockey, will you cut the pension?' And Mr Hockey reassuringly said, 'I'm not saying we'll necessarily cut the pensions.' So not necessarily going to cut pensions! I am sure pensioners and seniors feel very reassured after those comments by the shadow Treasurer! They have form. We know that the Liberal Party cut. That is what they do. They cut services: education, cut; health, cut; aged care, cut. Now we know they are not ruling out cutting the pension. So if you are a senior you can feel very confident about life under the Liberal Party! (Time expired)

Senator CHRIS EVANS: Mr President, I ask that further questions be placed on the Notice Paper.