Page 96 - Week 01 - Tuesday, 15 February 2011

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We will fight in relation to this. We will fight for families in Canberra. We do take it seriously. Irrespective of whether the government and the Greens dismiss it, policy decisions made in this place have an impact—(Time expired.)

MS HUNTER (Ginninderra—Parliamentary Convenor, ACT Greens) (5.06): I think it is important to articulate exactly what the real cost of living pressures are so that we are clear on the problems faced by the community and the initiatives required to remedy them. The cost of living includes housing, utilities, education and childcare, food, clothing, transport and health. So what are the Greens doing in relation to each of these items? I will run through them in my speech today. I am sure that that will provide Mr Seselja with a very clear idea of our policies and our views towards this matter. I would very much like to hear more about his ideas.

The Greens are committed to addressing the cost of housing and particularly to providing quality public housing. The cost of housing is not just the purchase price or the amount of rent; it is also the running costs of the house. Needless to say, it is very difficult to reduce the cost of housing. It is largely set by the market and there are limited mechanisms for government. However, the Greens are committed to addressing the issue and looking at the full range of issues involved. This includes considering significant amendments to the land tax scheme, as well as the planning regime, to ensure that it is sufficiently flexible and delivers the homes people want at prices they can afford.

If we go to utilities, there is no doubt that we have seen utility prices rise. The price of gas, electricity and water has risen significantly over the past few years. The reasons that prices are rising are varied and not easily ameliorated. Energy prices are rising because of a lack of investment by government in network infrastructure, because of
the rising demand for energy at peak times that is driving the need for infrastructure development. Network costs currently make up just under 50 per cent of the retail price of electricity.

A 2010 study undertaken by Simshauser, Nelson and Doan indicated that the rising commodity costs are likely to drive up electricity costs in Australia by around 30 per cent over the next five years, and distribution costs by more than 20 per cent. The best way to insulate ourselves against rising prices is to invest early in the kinds of policies that will drive the uptake of distributed renewable energy and improved energy efficiency. To do anything else is to bury our heads in the sand. We have a responsibility to protect people from rising prices, and we can best do that in two ways. The first is to decrease the amount of energy that households need to use and the second is to build a cheaper distributed renewable energy system that will eventually displace our reliance on coal-fired power.

The Greens are extremely aware that those who are most vulnerable in our society are also more likely to be affected by rising electricity prices in a way that is not equitable. Recent ABS cost of living data shows that the cost of living had risen faster than inflation since mid-1998, and this is particularly the case for households that rely on government benefits. Hardship applications made to ACAT from people who are unable to pay their energy bills show that about 75 per cent of people who are experiencing hardship and cannot pay their bills are people in public housing.


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