Tuesday, January 21, 2014

An Open Letter to Kevin Andrews

Hello Mr Andrews

I am sorry that you have come out suggesting that pension-benefits for many categories of disadvantaged people in our community might need to be cut or the eligibility criteria changed to reduce the number of people making claims.  The facts do not bear out your assertions and so I can only surmise that there are ideological reasons behind your propositions.

I am no wizard with figures, but the very first table in the report shows that the total number of people receiving benefits has increased over the 11 year period of the review by less than 5% or just under 250,000.  That seems to me to be well within the rate at which our population and economy has grown during the same period – not to mention government revenues.

A second consideration is that the increase in the number of aged-pensioners during the period is almost double the total increase of welfare recipients, so if you took them out of this table the total number of welfare beneficiaries would have decreased over the period.  We are already gradually increasing the age at which older people can claim the Aged Pension but the reality is the “baby boomers” are all getting older and they have paid their taxes for many years.  I don’t imagine you are going to try and cut eligibility for it any further.

If you take the Aged Pension out of the Table, there are only 4 categories of benefits that have had an increase in the number of beneficiaries over the period – the Disability Support Pension, Carer Payment, Youth Allowance – full-time students and apprentices, and Youth Allowance – other.  The remaining 14 categories of benefits all reduced the number of beneficiaries over the period.

You have already indicated that you have plans to get some people with disabilities back into the workforce, but you might remember that some people with disabilities need to have their wages subsidised up to a 100% wage value to take into account the discount in efficiency their disability causes for their employer.  The Carer Payment is the biggest single increase after the Aged Pension, but of course you know that these payments save Government many times more in expenses in health and aged-care services.

Mr Andrews I would suggest that you calm down.  We do not have a huge level of government debt as the Newspaper today attributed you as saying.  Your government is proposing tax cuts for mining companies and small business that are going to cost far more than you will ever save by tweeking these benefits.  Your government is proposing a gold-plated parental leave scheme that is going to cost a squillion (paid for by taxing corporations), and your government  is squandering billions of money outsourcing to corporations and other nations our responsibility to offer protection to those with valid refugee claims who have made it to our shores by any means.

As Minister for Social Security you have a huge responsibility to protect the most vulnerable in our society.  The way to get people with capacity off welfare and into work is not by systematically removing the safety net that ensures that they and their children can afford housing, food and access to health and education.

Please resist the urge to bash the helpless by cutting benefits.  We are a wealthy nation and we can look after our poor.