Page 90 - Week 01 - Tuesday, 15 February 2011
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
by one per cent in Canberra, lower than the national increase of 1.7. Education costs increased by 4.5 per cent compared to the increase nationally of 5.7. Financial and insurance services increased by 1.7 per cent, lower than the national increase of 2.2 per cent.
It is also important to know—I think Mr Hanson acknowledged it in his speech—that there are cost of living pressures that are beyond the control of the ACT government. For example, market forces, weather patterns, the value of the Australian dollar, commonwealth government policies and decisions of independent pricing authorities also impact on prices. When comparing cost of living, it is also necessary to make assessments in the overall context—comparisons against national averages and other jurisdictions, comparisons of household incomes and the phase of the business cycle.
There is a whole range of information available on cost of living, including from the ABS and other providers. These show that cost of living trends in Canberra are not out of line with other jurisdictions. Living costs increased broadly in line with inflation. Moreover, increases in living costs over time are an international and national phenomenon and, therefore, not something unique to the ACT.
In comparing the latest CPI figures with the figures of the March quarter 2002, while the ACT has recorded slightly higher inflation in terms of rates, Canberrans can rest
assured that our utilities and electricity price growth are lower than the national average, and the ACT is on par with the national inflation for rent and water.
Canberra is currently experiencing lower consumer price inflation than Australia. In the December quarter our annual inflation was the lowest in the country, while quarterly inflation was the equal second lowest in the country. Data on average retail prices indicates that the cost of living in Canberra remains below the national average, and this data shows that Canberra is the jurisdiction with the third cheapest average retail prices, slightly behind Sydney and Melbourne.
We also need to look at the relatively high income levels that our community enjoys. In the August quarter 2010, average weekly ordinary time earnings in the ACT were 17 percentage points higher than the national average. The territory has also experienced higher growth in average weekly ordinary time earnings over the past eight years. With incomes rising higher than the national averages and prices going slower, it would appear that this news is good for the ACT and for Canberrans that live here.
Gross household disposable income per capita was the highest of all jurisdictions, at $63,783, which is a whopping 69 per cent higher than the national average, at $37,714. Much of this difference can be attributed to the ACT’s higher rate of participation in the workforce and our very low rate of unemployment. We currently have the second lowest unemployment rate and the highest participation rate. There is no better way to protect the most vulnerable in the community against rising costs than providing meaningful employment.
This government considers as part of the overall budget process the cost of living pressures on residents in the ACT. We do, however, need to recognise policy levers
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video