Federal Budget, Parliament Wayne Swan - Shadow Minister for Family and Community Services , Manager of Opposition Business in the House of Representatives

Doorstop Interview

Transcript - Parliament House, Canberra - 13 May 2003

E & OE - PROOF ONLY

SWAN: Sinking middle-income families can't afford this Government. Last night the Treasurer gave a tax cut of four dollars to middle-income families earning $30‑50,000 a year. Four dollars, that's eaten up by these two loaves of bread. Eaten up entirely from these two loaves of bread from Coles in Manuka that cost - $5.50 – much more than the tax cut.

So all those sinking middle Australian families out there who are under tremendous financial pressure will have their tax cut eaten up by two loaves of bread, plus higher education and health costs. That's why Australian families are under substantial financial pressure.

The thing about the Budget last night is that it will accelerate the growing divide in Australian society. The well-off are doing really well, the middle are sinking and the poor are being left behind. There was nothing last night for those on very low incomes in the Australian community. We have a problem of growing poverty and inequality in this society, and the Budget last night is going to make that worse.

Now, yesterday in the Parliament, the Prime Minister said he would rather spend the money that could be spent on a Royal Commission into child abuse on early intervention and prevention programs. But the truth is this Government spends 0.006% of its social security Budget on early intervention and prevention programs for child abuse and last year cut $16.5 million from its Stronger Families program. So this Government does absolutely nothing to prevent child abuse, invests absolutely nothing in early intervention and prevention programs.

It's time when it comes to social security in this country that we stop putting band aids over the problems and make investments in early intervention and prevention programs. That's the way ahead for this country and if we want to do something substantial to prevent child abuse and social dislocation in this community, this Government has to start making some investments in early assistance programs for families. That's the way to deal with the causes of the problems not just the symptoms.

JOURNALIST: The Government would argue that the tax cuts are aimed at lower income earners?

SWAN: Well the tax cuts are welcome. The problem is this Government is the highest taxing Government in Australian history. This is the smallest tax cut in Australian history and over the last seven years the government has shifted the tax burden to low- and middle-income earning Australian families.

Last night it gave back less than two loaves of bread to low- and middle-income earning Australians. That's what it gave back, less than two loaves of bread for low- and middle-income earning Australians to compensate for the highest tax take in Australian history.

That's why Australian families are under such tremendous financial pressure.

JOURNALIST: The tax cuts clearly left open the option of an earlier election. Do you see that as a possibility?

SWAN: I don't know whether the Government is contemplating an early election. What is most important is that we take the fight up to this Government, take the fight up on the growing financial pressures it has placed on low- and middle-income earning families in this community.

Low- and middle-income earning families are being squeezed. Those at the top are doing better all of the time, but low- and middle-income earning families are constantly being squeezed by higher health and education costs, and the best that Peter Costello can offer is less than two loaves of bread.

JOURNALIST: Do you regret being ejected from Parliament yesterday?

SWAN: Yes I do. You have to take the umpire's decision on the chin whether you agree with it or don't agree with it. I regret the fact that I was ejected from Parliament.

JOURNALIST: How long till you are allowed back in?

SWAN: Well, I think I will be back in early next week.