30 April 2014

Federal Member for Hume Angus Taylor says Australia has reached the bottom of the pork barrell and the public wants action to fix the debt.

Addressing members of the Association of Independent Retirees this week, Mr Taylor said the coming Federal Budget signalled the end of “15 years of pork barrelling, of the numbers going up.”

“We might not have the highest level of government debt in the western world, but we do have the fastest growing debt. Household debt in Australia is through the roof. No other country except for Ireland comes close. This is why you hear so many people my age, who have taken out big mortgages, are scared. They’re worried about losing their jobs, they’re worried about interest rates going up, they’re worried about the cost of living going up and I hear this every day. We are now layering government debt on top of that private debt and it’s becoming a towering inferno. We have 1.4 trillion dollars of household debt; these are such big numbers, they’re almost meaningless. That’s as big as the whole economy itself. That is why we need to act.

“The two biggest spends, which constitute about 40 per cent of the Budget, are welfare and health. They are growing at a much faster rate than the economy, they’re growing at about eight or nine per cent a year. The economy’s growing at about four and a half, five per cent. So if you just let that keep going, if you wait long enough, the whole economy will be health and welfare.

“By 2050, the number of people over the age of 65 will double, by 2050 the number of people over the age of 85 - and this is my group, I’ll be 84 by 2050 - will quadruple. Four times as many. We’re thinking that far ahead. This is a budget where we’re thinking 30 years ahead of where we are today. In many ways the issues here are not short term fix, they’re long term.

“The last government pushed the pension age up from 65 to 67 by 2023. We backed that. However there is a very legitimate case for pushing that up to 70 for those who can. And there will be people who have done manual work all their lives who are not going to be able to work that long. That is well understood. But if we don’t push the pension age up to 70, our ability to fund all of those things that we need to fund is dramatically diminished. It’s not an issue for people in this room. It’s an issue for my generation.

“Trying to make sure that health services are not over used, not abused, will be a central theme in this Budget. The reality though is that we are very conscious of making sure that those who are most in need get ready access to appropriate health services. The Treasurer has already indicated there will be a cap on any co-payments when you visit the GP of $70 a year.

“And there will be a big focus in this Budget on means testing. Those who can afford should pay, those who cannot afford to, shouldn’t be expected to. I am assured that those of us on higher incomes, and I count myself amongst those, will be stumping up too. And I think we should.

“From what I’m hearing, we are all going to have to contribute in some way. I ask you all to think of the national interest as these proposals are put forward in coming weeks.” 

From a speech by Member for Hume Angus Taylor to the Independent Retirees Association Southern Highlands Branch meeting on Tuesday 29 April at the Goulburn Workers Club.