Senator IAN CAMPBELL (4:28 PM) —I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard .

Leave granted.

The speech read as follows—

Madam President, Australia sent its young service men and women overseas on service with the solemn undertaking that, in the event of the war causing their death, their widow or widower would be cared for.

Since 1914, that undertaking has been honoured by the payment of a war widow's pension as special compensation for the loss of the family breadwinner. It is neither taxed nor means tested, and until now it has been indexed according only to the consumer price index.

This bill links the war widow's pension and the basic war widower's pension to 25 per cent of male total average weekly earnings, whenever this measure exceeds the growth in the consumer price index.

This will ensure the basic war widow's pension and the war widower's pension continue at the same level as the service and age pensions, as they have done since 1964.

This bill expands on the Government's 1996 election commitment to deliver a pension benchmark of at least 25 per cent of male total average weekly earnings.

The Government has already delivered on this promise for service and age pensioners. Now 100,000 war widows and war widowers will also share in the improvement in community living standards.

The immediate effect of this bill will be an increase of $6.80, bringing the total of war widow's and war widower's pensions to $378.60 per fortnight. Over the next four years, the cost of the new indexation arrangements for war widows is expected to be approximately $164 million.

Madam President, this bill demonstrates the Government's commitment to protecting the living standards and financial security of older Australians. I commend this bill to the Senate and present the explanatory memorandum.

Debate (on motion by Senator Denman) adjourned.