Page 2344 - Week 08 - Tuesday, 12 August 2014
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year in the red. Some other part of the family budget is going to have to suffer. This family has already paid stamp duty when they purchased their home, a figure of around $15,000. They are now being asked to pay over and over again the same figure.
When confronted with the reality this family lives with, the Treasurer’s disastrous response was, “Get a union and get a pay rise.” Mr Barr said they will have to get three per cent wage increases each year to survive his rates hikes. He intends to take that and some more. Mr Barr believes unions argue for a wage increase in line with WPI in order that he can take that additional money to spend on what he considers important. Does he think that when employees sit down and see the outcome of their wage negotiations, they think, “Fantastic, I’ll be able to pay more tax”? Or does he think maybe they think there is some hope on the horizon for an improved life for their families? Maybe, finally, they will be able to buy their child a bike or send their child to soccer or replace a leaking fridge or buy a swing set for the backyard? The government is basically saying to these people, “Have no hope, because we’ll take whatever increases you get. What’s more, you should be grateful for what you get from this government.”
Let us talk about this year’s wage negotiations. Public servants all over Canberra have been offered by this government a 1.5 per cent pay increase, I believe. If, as Minister Barr says, household income will grow at three per cent per annum, those households are already 1.5 per cent behind and will still have to pay the 10 per cent increase in rates. How will they be able to afford it?
In his answer to me at estimates, Mr Barr said he could only guarantee that the family will be able to continue to afford to live in the ACT on one income:
… provided that the family’s income continues to rise in line with the average wage price index, which I think is a reasonable thing to expect.
It seems that this is not a reasonable thing to expect in wage negotiations with Minister Barr making the wage offers. The federal public service, a leaked report tells us, is looking at a possible 0.88 per cent pay increase, so I am not sure how those families are supposed to cope.
Mr Barr: Well, you might want to have a word with Eric Abetz about that.
MRS JONES: I stand up for public servants in Canberra, thanks very much, Minister Barr. Minister Barr also said:
I am hoping that in that particular household the worker is a union member, and has a strong union representing them to increase their share of the wage share.
I told Minister Barr that I will let this hardworking family know that that was his advice. He went on to say:
It would be very sensible advice to be a union member and be able to argue for wage increases each year to meet the cost of living.
Maybe the workers of the ACT will need to invite the waterfront workers union to represent them in order to survive Minister Barr’s tax grabs.
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