Friday 9 October 2009

Paternalistic system entrenched by state pension grab says CPSA, but doesn't reveal full extent of Commonwealth-State duplicity


Excerpts from recent Combined Pensioners and Superannuants Association media releases concerning the recent increase in the base pension rate for single pensioners:

Paternalistic system entrenched by pension grab

"By taking a quarter of the pension increase away in public housing rents, state governments are entrenching the paternalistic notion that pensioners should be grateful for anything that they get" said Charmaine Crowe, CPSA Policy Coordinator.
"It says to pensioners in public housing that they owe the state governments something because they were lucky enough to secure public housing in the first place."
CPSA calls on the Federal Government to make good on their assurance that they will "take whatever actions are required to ensure that this money is delivered permanently to the pensioners of Australia" (Treasurer Wayne Swan, ABC Radio, 29 September 2009).
"This pension increase is in response to the fact that the pension was seriously inadequate - seriously inadequate for pensioners in public housing, as it was seriously inadequate for home-owners and pensioners renting privately."
"Pensioners are sick and tired of having to battle to get anywhere. It seems as soon as pensioners win one battle, they're faced with ten more."
"The extra $30 a week is needed for pensioners to pay higher electricity bills, pay higher water bills, and to pay for higher-priced groceries. By taking away a quarter of the increase, it is clear that state governments do not comprehend the cost pressures facing pensioners everyday."

State governments see dollar signs in the pension increase

"The increase in public housing rents also tells private landlords that it's okay to charge pensioners more for a roof over their heads." "It's disgraceful that some of the poorest people in our community will be footing the bill for state infrastructure, when every cent they receive is needed for the essentials in life."

What the CPSA doesn't point out is the fact that the Rudd Government went as far amending the Aged Care Act 1997 in order to honour its commitment to protect the September 2009 pension increase for those single pensioners in aged care accommodation, but only quarantined $20.18 per fortnight. So that these pensioners are also not seeing the full benefit of the recent $60 per fortnight increase in the base pension.

What the Rudd Government has done is use this pension increase as a backdoor way of increasing funding to both the NSW Government public housing sector and public/private aged care providers.

Making a mockery of its 2009-10 budget pledge; The Government is reforming the pension system to improve pension adequacy, make its operation simpler, and ensure its sustainability into the future.
The global financial crisis is a timely reminder of the importance of an adequate safety net for older Australians.
and Jenny Macklin - Minister for Families, Housing, Community Services and Indigenous Affairs joined us the morning, pensions fall under her portfolio.
She confirmed that the budget announcement of $32.49 for single pensioners will be money in the hand. That is - on top of their current payments and allowances

This is a cynical exercise worthy of the former Howard Government and, I expect that quite a few pensioners on the NSW North Coast will remember Labor's tricky move when it comes time to cast their votes at the next state and federal elections.

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