SUBJECTS: Economic Security Package, pension reform.
PETER MAHER:
Ten past five, joining us now is Chris Bowen Assistant Treasurer. Hi Chris.
CHRIS BOWEN:
Good afternoon Peter.
MAHER:
Now Chris do you think it's fair to dictate how pensioners should spend their government bonus?
BOWEN:
No and nobody is doing that. We have implemented this strategy to stimulate the economy, and in doing that, we've decided to give it to the people who are doing it tough in the community. Now what we've said today and what the Prime Minister said over the weekend is that we are doing this to stimulate the economy and therefore it is good if people spend it but at the same time people need to make their own decisions about what's in their own best interest.
MAHER:
So when we have the Prime Minister urging - and this is his words - he's urged recipients to spend the cash hand outs in the lead up for Christmas to give the flagging economy a much needed boost in the face of the global economic downturn.
I read nothing here about the fact he's giving this bonus because he wants to help these pensioners who live on an absolute pittance.
BOWEN:
Look he said several times and we all have that pensioners are doing it tough and that's why they were at the top of the list when we did the stimulus package; pensioners and families and carers so look, when your doing a stimulus package the sensible thing to do is to give it to those who have missed out and those who are doing it tough.
Now some people are out there arguing that we should have had tax cuts instead, well look pensioners don't get tax cuts in the main so that's why we've done the stimulus package in this way so that people who are doing it tough get a bit of a hand.
MAHER:
Chris, no one is doubting that they deserve this money, but the fact is which you have just admitted, the only reason you are giving them the money is because you know this group will go away and spend it for the simple reason they don't have any resources behind them, they have to go away and spend it.
BOWEN:
Well this is a down payment on long-term pension reform, we've said that all the way along. This is if you like killing two birds with one stone: stimulating the economy, putting more money back into the economy which is what we need - the rest of the world is going into a recession Peter - and we need to deal with that, that's why we've had the stimulus package, but I think pensioners deserve the money and that's why they...
MAHER:
So it's taken a recession before we can initiate the stimulus as your calling, before we can go and give them a fair few extra quid to live on.
BOWEN:
We've said all along that pensioners deserve more money, but you've got to be careful, now for example this money won't affect pensioners rent etc. If you just increase their pension and their rent etc, that's why we've got this long term process in place, in order with the Henry review and the Harmer review to work out the best way of giving them a more sustainable future, but this is a measure which helps pensioners and others we shouldn't forget there's lots of others receiving money over the next fortnight as well, but helps them in tough times.
MAHER:
Okay and the only reason they are getting it is because we know we are going to go away and spend it. Opposition spokespeople and government spokespeople have said that some pensioners will squander their bonus, what constitutes squandering in your mind?
BOWEN:
I don't think you'll find any Government spokespeople saying that Peter, I stand to be corrected, but certainly not heard anybody from the Government say that at all.
MAHER:
Well what constitutes squandering in your opinion?
BOWEN:
I said all along that people should, we should respect peoples ability to spend the money in their own interests. For some people that will be buying Christmas presents for other people it will be spending it on a fridge they might not have been able to afford to replace up until now. For other people, it will be paying down a bit of their credit card debt or other debts. So look everybody, I think, should be trusted to spend the money in their own interests and will end up being in the national interest.
MAHER:
Should pensioners start praying now that we go into a really deep recession, because then you might give them another stimulus, they might cop another bonus?
BOWEN:
Look a recession is never any good for anybody Peter and...
MAHER:
It seems it's been good for the pensioners, you've gone away and given them dough because you no they've got none and they will go away and spend it, it's great for them isn't it?
BOWEN: That's why we have this stimulus package to get through, get Australia through and the rest of the world is going into recession, and get us through with growth as robust as it can be and unemployment as low as it can. Also some very important payments to carers and very important payments to families as well.
MAHER:
Do you think pensioners are well treated by your government?
BOWEN:
I think we are moving to help them and we giving them, obviously this is a down payment on long term pensioner reform and I think pensioners have done it tough for a long time and everybody in the Government recognises that. That's why as I say, when we were sitting around talking about the stimulus package the first group that we wanted to help was pensioners.
MAHER:
How do you think you and the Prime Minister would go living on $280 a week?
BOWEN:
I think everybody said it's very, very tough, very, very difficult and of course that's the case.
MAHER:
Alright we appreciate you taking the time to talk with us today, Chris Bowen, the Assistant Treasurer.