Budget Estimates and Related Papers

Debate resumed from 17 June.

The Hon. CARMEL TEBBUTT [2.30 p.m.]: It is with great pleasure that I am here today making my first speech in the Legislative Council representing the Australian Labor Party. The Australian Labor Party is both the oldest political party in Australia and the one that has instigated many of the profound social and economic reforms that make for a civil society. I look forward to being a part of further reform in the true Labor tradition as a member of the Carr Government. I will make some general comments before I address the specifics of the 1998-99 New South Wales budget. Firstly I place on record my thanks to my colleagues and comrades in the Australian Labor Party who have supported my entry to the Legislative Council as their representative. I will endeavour to return the faith they have placed in me by working as a member of this Parliament for progressive change.

It is a great honour to follow Ann Symonds into the Legislative Council. Ann’s hard work and dedication is acknowledged by many on all sides of the political fence, and she was at the forefront of the fight against inequality. Her work in the areas of drug law reform, children’s policy and women’s policy is renowned. I hope that I can serve the people of New South Wales with the same vigilance, commitment and compassion as did Ann Symonds. I am pleased to see that the representation of women in this House is better than in politics generally. The institutions for governing can only be genuinely representative when their make-up closely approximates the gender, ethnic and racial make-up of society. Women of my generation have benefited greatly from the actions of our predecessors which have increased the opportunities for women to participate. However, there are still many barriers to women’s full participation in politics, as in many other areas of life.

The Australian Labor Party has recognised this through the introduction of affirmative action rules. These must be accompanied by genuine commitment to addressing the many and varied pressures that prevent women taking an equal place in the parliaments of Australia. I look forward to seeing a dramatic increase in the number of women in Parliament over the next few years. I take pride in representing the Australian Labor Party as a member of the Legislative Council. As we all know, the Australian Labor Party developed out of the great shearing and maritime strikes in the late nineteenth century. It was created by the trade union movement
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to represent the interests of working people in the New South Wales Parliament. I place great importance on Labor’s links with the union movement; it is a defining feature of the Labor Party and one that must continue to grow in strength.

I joined the Australian Labor Party in 1985 and this decision was both a product of my background and also, I guess, a statement of future intent. Growing up in a large Catholic working-class family was a life-affirming experience but it also opened my eyes to the inequality in the distribution of wealth and power. I am the first in my family to gain a degree, and university study gave a theoretical framework to my experiences. Joining the Australian Labor Party seemed to be the natural next step. The ALP was and remains the party most likely to achieve, through the parliamentary process, the redistribution of power, privilege and opportunity, and the democratisation of economic and social life.

My political education really began when I worked in the trade union movement, initially as the New South Wales branch secretary of the AMP staff association and then later as an industrial officer for the Community and Public Sector Union. I learned first-hand from the union movement the importance of collective organisation in representing the interests of working men and women. I also had the opportunity to work with some wonderful people in the Labor movement, who have been formative in my political development. There are too many to name but I would like to mention one person in particular, who unfortunately passed away some years ago: that is Neville Hill. Neville was an organiser with what is now known as the Australian Manufacturing Workers Union. He was a man of great integrity and was always willing to share his wisdom with many younger people coming through the movement, including me.

With much media attention focused on unions it is timely to remember the simple fact that power in the workplace is not equally distributed, and unions are a collective response to that - groups of people who join together to protect their common interests. For the last decade there has been much talk in the media about unions having become irrelevant. There are claims that unions should not stand between employees and employers; that it is more efficient to have individual employees negotiating with their employers. It is argued that unions stand in the way of employees getting the wages and conditions packages best tailored to their needs. I do not agree with that.

The conservative forces that are trying to destroy the union movement do so to drive down wages and conditions. However, the net result of having no unions is lower hourly rates, longer hours and loss of sick leave, holidays, and many other conditions. Most employees are not in a position to individually negotiate the best contract for their employment. Employees are disadvantaged in negotiations with employers; they do not have the power, negotiating skills or confidence of their employer. Unions developed because workers realised that it was only by acting collectively that they could improve their wages and conditions. Occupations with low levels of unionisation have lower wages and conditions compared with unionised occupations. Living standards improve with the unionisation of the work force. If we want a just society we want a strong trade union movement. The importance of collective action in all its facets is an important part of the Labor creed. As Neil Kinnock said:

We know that if we are going to get and going to give the standard of care that humanity requires we’ve got to get on with doing it together. So we co-operate. We collect together, co-ordinate so that everyone can contribute and everyone can benefit; everyone has responsibilities like everyone enjoys rights. We call it collective strength, collective care.

The aims of the trade union movement for a fairer, more just society in which all people are afforded dignity and respect are aims that I share. I despair at the ideologically driven approach of the Howard Government to the organisations that represent the working men and women of this country. I do not believe that a government that supports black shirts, balaclavas and dogs on chains in our workplaces governs for all of us. Many in Australia viewed developments on the waterfront and the dismissal of 2,000 workers with dismay. I support an approach to industrial relations that promotes change through consultation and co-operation, with resultant gains being fairly distributed and a proper role for the Industrial Relations Commission as the umpire.

It is a matter of some pride to me that my first action after being pre-selected was to address the Port Botany picket line. The Maritime Union of Australia showed courage and determination during this dispute. Workers everywhere in Australia owe a great debt to that union for its struggle to ensure the freedom of working people to belong to the union of their choice. I come into this Parliament at a time of great change both in Australia and globally. The recession of 1974-75 saw the end of continuous stable economic growth and virtually full employment in the post World War II era. Since that
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time Australia has endured economic uncertainty, with recession and growth interspersed. This has been accompanied by globalisation of the world economy and an increased reliance by many governments on the policies of economic rationalists. Everywhere Australia can be seen to be going through an extraordinary transformation.

There is no question that such change has thrown up new winners and losers; and inevitably there is a growing gap between those who have and those who have not. Research by Bob Birrel and Virginia Rapson demonstrates this in the Australian context. By September 1996, 43 per cent of Australian families could be regarded as poor, which was defined as being in receipt of additional family payments. This increase occurred over a time when there was some recovery in the Australian economy from the 1990-92 recession. Despite our claims to egalitarianism as a country, we tolerate high levels of poverty and unemployment, an unequal distribution of health and life expectancy, inequality in wealth and income, and unequal access to educational and employment opportunities.

It is at times like these that we need leaders with vision who offer hope, leaders who can communicate to the Australian people that there is a way forward based on humane values that encompass all in our varied community. It is also unfortunately a time when the shrill voices of mean and mediocre political opportunists strike a chord with those who fear change. The answer does not lie in the simplistic slogans of parties such as the One Nation Party; it lies in governments playing a significant role in strengthening communities, developing a more inclusive sense of Australian citizenship and promoting the value of diversity. It lies in practical solutions such as support for rural and regional areas, securing employment opportunities and providing a strong and effective public sector, a comprehensive health care system and community services that support those in need.

The 1998-99 budget demonstrates that the Labor Government sees its role as supporting and sustaining communities. It recognises that a fairer society is not only more just but more stable, secure and harmonious. My experiences as a councillor and deputy mayor of Marrickville have led me to understand the importance of an approach that recognises diversity in society. The Marrickville local government area is one of the most culturally diverse areas in New South Wales. The proportion of people born overseas is 37.1 per cent of the population. Nearly 11.7 per cent of the population do not speak English well or at all, and the median personal income of $324 a week is significantly below the New South Wales average.

Local government provides a great opportunity to work with communities at a grassroots level and gain a real understanding of people’s needs. Marrickville is constantly enriched by the vitality, hard work and enthusiasm of its various ethnic communities. Multiculturalism is recognised as a positive attribute by the many people who live and work in the area. However, this has not happened by accident. The elected council, under the leadership of Counsellor Barry Cotter, who is in the gallery today, is involved in numerous activities that are part of building and supporting the community, and promoting the importance of understanding and celebrating difference. And Marrickville community is stronger for that.

I turn now to the budget. I am speaking on the fourth Labor budget, brought down by the Hon. M. R. Egan on 2 June 1998. I congratulate the Treasurer on this budget. The economic approach of the State Labor Government stands in marked contrast to that of other conservative governments in Australia. The budget recognises that social infrastructure is as important for a prosperous society as economic infrastructure. This is a significant distinction often missed by those who analyse budgets.

With a greater awareness in the community of economic and financial matters, many commentators have an increasing fascination with the budget’s bottom line. Far be it for me to argue that the bottom line does not matter - and I note that this budget delivers a bottom line with which most economic pundits could not find fault. What does concern me is that an overriding fixation with the final number, deficit or surplus, can obscure the real purpose of budgets. Budgets are not just about finances per se but about improving people’s lives and changing social conditions for the better. Rather than the surplus referring to the result after calculating cash in and out, I prefer to think of the social capital surplus we gain through improved health, education and community services outcomes.

I am pleased that the Treasurer referred to the net worth of the public sector in his Budget Speech - estimated to be $68 billion, compared with just $20 billion in Victoria. Governments must focus on the contribution they are making to increasing the net worth of the State, and protecting and maintaining our assets, because that is the true
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legacy we leave to future generations. The Government, through this budget, recognises the need in our State, and provides increased funding for health, education and community services to meet that need.

Tonight I shall address my comments to some specific initiatives in this budget. These initiatives are outlined in the social justice budget statement which forms part of the budget papers. The Carr Labor Government introduced a social justice budget statement with its first budget to outline its major social justice programs and priorities. The statement also reports on the outcomes of the previous years’ social justice undertakings. This provides an important tool for the Government and the community to determine progress in achieving the Government’s social justice outcomes.

The social justice budget statement is part of the Government’s overall social justice strategy. While it is not unusual for governments of all persuasions to profess a commitment to social justice, the people whom Labor represents demand that social justice be an integral and significant part of the overall policy direction of Labor governments. Labor’s commitment to social justice stems from an historic commitment to fairness and equality. It is a desire to see a decent life for all people and an understanding that addressing inequality requires action based on a recognition of the history, circumstances and needs of those who do not have social and economic power - one size does not fit all.

Labor’s approach to social justice says that governments have a fundamental responsibility to intervene and address inequities of the past and the present. The objective of the strategy is to integrate social justice principles into the machinery of government. While this is a laudable aim, it is easier said than done, and the Government must continue to strive for a strategic approach that integrates social and economic policy. The commitment to community services in this budget, and in previous budgets, is a practical example of this philosophy being put into action.

The community services, ageing and disability portfolios have been allocated $131 million more in this budget than in the previous budget. This represents an increase of 11 per cent. In the final year of the Fahey Government the community services, and ageing and disability departments received $899 million. In the coming year those departments will get $1,258 million. The boost in funds will allow a number of important initiatives to proceed, including an extra $14 million for disability crisis support and accommodation, $4.6 million extra funding for post-school options for young people with severe disabilities, and $4.2 million extra to run the innovative youth justice conferencing scheme.

Improving connections between community members and government services continues to be a priority, as demonstrated by the recently announced Families First program. This program is based around four different types of services: health visitors, volunteer home visitors, early intervention teams, and local development programs. In the first year $1.35 million will be spent to ensure the program has a sound foundation in consultation and planning, and well-trained staff and effective evaluation and monitoring systems. This is very important because of the volunteer component in the program. It is essential that proper training and support is provided. This consultation should also ensure that the program intermeshes with similar existing services, particularly the important work done by the Family Support Association.

New and changed services will commence during 1999-2000, with an additional $2.4 million in that year and $5 million annually in future years. This program is consistent with the Government’s support for preventive care and early intervention. This significant new initiative aims to strengthen and extend the parenting skills of parents in New South Wales who have a child under eight years of age. I shall now address the Aboriginal Communities Development Program, which has been detailed in the budget papers. The Government’s broad social justice strategy is built on fair access by the people of New South Wales to the resources managed on their behalf. Many Aboriginal communities in New South Wales live without adequate housing, water supply and sewerage systems. A social justice approach that addresses this must take on very specific characteristics. As Aboriginal and Torres Strait Islander Social Justice Commissioner Mick Dodson said in his first report:

Social justice is what faces you when you wake up in the morning. It is awakening in a house with an adequate water supply, cooking facilities and sanitation. It is the ability to nourish your children and send them to a school where their education not only equips them for employment but reinforces their knowledge of and appreciation of their cultural inheritance. It is the prospect of genuine employment and good health: a life of choices and opportunity free from discrimination.

Too many Aboriginal Australians live in conditions the rest of us would consider appalling. The extent of the disadvantage across all social and economic indicators is well documented, but I shall mention a few examples. Unemployment among Aboriginal people is at 46 per cent compared with 8 per cent
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for the general population. Aboriginal people have twice the proportion of low birth weight babies, three times the level of inadequate housing, and less than half the level of post-secondary qualifications. Life expectancy for Aboriginal men is 54 years, compared with 73 years for non-Aboriginal men. For Aboriginal women it is 65 years, compared with 79 years for other Australian women. Although they represent less than 2 per cent of the population, Aboriginal people account for 32 per cent of youth in custody and 14 per cent of adults in custody.

The Government is committed to working with Aboriginal people to redress this disadvantage. Commencing on 1 July 1998, $200 million has been allocated over seven years to the Aboriginal Communities Development Program. This program continues the tradition begun by the Wran Labor Government when it introduced the first land rights bill to ensure better health and living standards for the indigenous people of New South Wales. This funding will be for communities. Major construction will take place over seven years in communities such as Bourke and Wilcannia. Over the next 12 months a comprehensive consultation process with Aboriginal groups and relevant government agencies will determine a priority list of other communities in need.

Too many Government programs have failed to make a real difference for indigenous communities. They have failed not always because of a lack of goodwill, but often through the inability of governments to genuinely involve the community in developing solutions. As part of this program’s implementation, communities will be assisted to establish community working parties. This will be a vital element in the success of projects. There will be a substantial requirement for consultation between the recipient community and project managers in the design and construction phases. A steering committee chaired by an officer of the Department of Aboriginal Affairs will oversee the management of the program.

The Aboriginal Community Development Program is a major initiative to improve the physical and social wellbeing of indigenous communities in New South Wales. The benefits are multifaceted. The program will also secure important employment and training opportunities for participating communities. It is part of an overall commitment of this Government to the indigenous people of Australia that is embodied in the Government’s landmark statement. I congratulate the Deputy Premier, Minister for Health, and Minister for Aboriginal Affairs, Dr Andrew Refshauge, on his determination to work for justice and equality for Aboriginal people.

I am proud to be part of a Labor Government that is working with indigenous people to meet their needs and aspirations. I am proud to be a member of one of the first parliaments to offer a formal apology to the Aboriginal people for the separation of Aboriginal children from their families. In doing this the Parliament recognised that Australians must accept the entirety of the nation’s history and the reality that Australia’s story is many stories. We can look upon the achievements of the Australian people with great pride, but we must also acknowledge and accept the suffering inflicted on and endured by the Aboriginal people.

I now turn to that section of the budget that relates to health. I spent the three years prior to entering Parliament working for the Deputy Premier, Minister for Health, and Minister for Aboriginal Affairs, Dr Andrew Refshauge. That position afforded me a great opportunity to learn about the New South Wales health system. This budget once again sees increased funding for health. Recurrent expenditure for health in the 1998-99 budget is $6.633 billion. Since its election this Government has increased recurrent spending for health by nearly $1.3 billion - an unprecedented increase of 34 per cent in nominal terms. This year’s expenses will cater for an estimated 1.3 million hospital admissions, which represents almost 60,000 more patients than in 1994-95. In addition, $478 million will be invested in new assets, including funding for the refurbishment of buildings at the Illawarra Regional Hospital, rebuilding the John Hunter Hospital emergency department, the Central Coast Area Health Service strategy and upgrading State Government nursing homes to meet contemporary standards.

Improving mental health services has also been a priority of the Labor Government. Since coming to office the Government has increased funding for mental health services by $36 million. This includes allocations of $14 million per annum for suicide prevention programs, $1.3 million to support the development of mental health services for Aboriginal people and $10 million to improve services in rural New South Wales. This increase in New South Wales health funding comes at a time of increased pressure on the health system through the Federal Government’s failure to properly fund Medicare. The New South Wales Government has recognised the importance that people place on a comprehensive and effective public health system and have funded it accordingly. However, a properly
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functioning health system requires the commitment of State and Federal governments.

Medicare must remain the cornerstone of the Australian health care system. Medicare is a highly efficient system that has broad community support. When it was first introduced in 1984, only 44 per cent of Australians were in favour of it. In the most recent survey, conducted in 1994-95, more than 90 per cent of Australians supported it.

Through its public health care system Australia provides universal access and insurance cover to all citizens at 43 per cent of the United States of America level of expenditure per person. Many other such figures which demonstrate the efficiency and effectiveness of our health care system can be quoted. But it is also true that there is a growing perception that something is very wrong with health funding in Australia. This stems directly from the Federal Government’s reluctance to commit more money to health care, while at the same time the Australian people want more health services. All governments have a responsibility to demonstrate the link between revenue raised and the ability to provide services.

Australia is one of the lowest taxed countries in the Organisation for Economic Co-operation and Development and yet the Federal Treasurer continues to boast about the decrease in the tax take since the coalition came to office. Meanwhile the impact of funding reductions are felt by pensioners who wait 12 months or longer for their dentures, and older people who fear they will not be able to afford nursing home care at the time when they are most vulnerable. The answer does not lie in rearranging the deckchairs and introducing a new regressive tax that will hit hardest those least able to pay. It lies in a progressive tax system that fairly raises the necessary revenue to provide the health and other services needed in the community.

Since 1994-95 New South Wales funding for health has increased by 37.4 per cent in real terms while Commonwealth contributions have risen by only 12.85 per cent. The Federal Government is avoiding its responsibility to meet the additional costs imposed by declining private health insurance, rising costs of medical technology and an ageing population. This means there is a very real danger that Australia will develop all the problems synonymous with two-tiered unco-ordinated health systems: rising costs and rising inequality of access to care. Cost-effective health care is an essential requirement if universal and equitable health care services are to be socially affordable and relevant to the changing needs of our community.

I hope that I see in the near future a rational and reasonable solution from the Federal Government in the Medicare funding negotiations. This must be a solution that genuinely meets the needs of the people of New South Wales. Apart from the issues I have commented upon there are many other worthwhile initiatives in the budget, particularly in the areas of education and transport. However, time does not permit coverage of them all. In conclusion I would like to thank a number of people. I thank the many staff and members in Parliament House, in particular Sue Tracey, who have helped me to find my way around. I thank my parents, who are here today and who have given me much love and support, and an appreciation of the values that come from their experiences of life, work and family.

I thank my partner, Anthony Albanese, whose love and generous support, advice and encouragement have always been an important part of my political success and personal happiness. Finally I thank the members of this House for extending me the courtesy of listening to me in silence today. I look forward to working constructively with all of you on the many issues that will confront us in this House over the next few years.

Debate adjourned on motion by the Hon. Dorothy Isaksen.