WONG: Im here today with Kate Ellis to talk about Tony Abbotts latest policy idea, which is to subsidise nannies. But I want to start by talking about economic credibility. Economic credibility is about having a plan, making sure its properly costed and properly funded. Tony Abbotts never done this.
Who can forget the election campaign where his costings were done by a firm that breached professional conduct rules, that acted unprofessionally? Who can forget the immigration costings that his frontbench released, which were done by a catering company? That is Mr Abbotts standard when it comes to a plan for the future. No economic credibility at all. And now we see from figures that the Government is releasing that his latest idea would cost $2 billion. $2 billion over the forward estimates. $2 billion which would add to his already enormous black hole.
So youd have to wonder, why does Tony Abbott actually say this? Well, we know that because of what his own party room are saying. We know this because today in the papers we have a Liberal Party member, a Liberal Member of Parliament who said no one really thinks were going to do it, its just part of the appeal to women. No one really thinks were going to do it, its just part of the appeal to women.
So, Mr Abbotts own members have made it clear, this is nothing more than a cynical manoeuvre. Its not real, it wont be funded because they cant fund it. And its just part of a cynical move to get people to think hes more than Dr No. If hes going be more than Dr No hes got to come up with policies that are properly funded. Now Ill hand over to Kate to talk a bit more about these comments.
ELLIS: Thank you very much Penny. Tony Abbott made clear when he said that taxpayers should subsidise nannies that that funding should come from the existing funding envelope. Lets be very clear about what that means. Todays analysis shows that taxpayers would have to stump up $2 billion out of existing child care subsidies in order to fund nannies. What that means, $2 billion, is that 654,000 Australian families on child care benefits would be looking at a 20 per cent cut to those benefits. Im saying to the Opposition today that they need to be very clear with the families of Australia just who is going to face these cuts, and how much.
JOURNALIST: How did you cost that expense for the project?
ELLIS: These costings came from the Department of Education, and have gone through the Finance Department. These costings are based on ABS statistics about how people are using nannies, and would use nannies, at an average wage. At the moment we know that nannies are paid between $15 and $35. These costings are on $25 an hour.
These costings have gone through the Finance Department, they have been assured in that way. Were confident of these figures. What were not confident of is how Tony Abbott will fund the $2 billion out of the existing envelope without hitting the assistance which 654,000 Australian families are relying on to meet their child care costs.
JOURNALIST: Wouldnt that be a justification for getting the Productivity Commission to look at this, even as an option?
ELLIS: Look, we can have as many reviews, as many enquiries as you like. It comes down to a very simple equation. When you have one pot of money, which is already being distributed to the families of Australia, you cant use that money to do anything else without cutting the money that were currently giving to child care services.
JOURNALIST: (inaudible) the Liberals are proposing to help the modern woman, what would Labor do?
WONG: Ill let Kate respond to that, but I want to make this clear: theyre not proposing anything other than an idea they cant fund, other than by cutting things that families already get. Lets remember that.
And lets remember also what the motivation is, which is the one I outlined to you. Its not real, its just part of the 'appeal to women. And if they want to make it real, they would have to make the cuts that Kates talked about.
JOURNALIST: Is there any -
ELLIS: Can I just answer that question? In terms of our Governments assistance to working families, were proud to have introduced Australias first ever Paid Parental Leave scheme. But were also proud that weve introduced record levels of affordability assistance for child care services, increasing the Child Care Rebate from 30 per cent to 50 per cent.
Weve also increased the accessibility of child care services, with a 36 per cent increase in the number of approved services in just the four years since we came to Government. That equates to more than 500 new services opened in the last 12 months alone. Were already making real reforms, putting in place real measures, which are making a real difference to working families. Were not just coming up with undeveloped, uncosted thought bubbles.
JOURNALIST: Is it time to reassess that Child Care Rebate model, perhaps higher than 15 per cent to meet current womens needs?
ELLIS: The model was at 50 per cent. This is the highest level of assistance weve ever seen in Australias history. This is also being increased up to a cap of $7,500 per child. This is pretty generous assistance that we put into place because we know that we need real and effective measures to help working families with the care for their children when they go off to work. Our Government recognises this, but weve actually got runs on the board for delivering it, not just for coming up with (inaudible).
JOURNALIST: Is there any trouble with making the system more flexible if you opened up the options with other rebates to other sorts of services, like nannies for example, that people might shift what they look for depending on what rebates and what sort of funding arrangements were available?
ELLIS: Im incredibly proud that our Government has worked to increase the quality of early education care services in Australia. Weve done that by ensuring increased professionalisation, increased qualifications, increased training for staff. Now, against that, even on the $2 billion costing analysis released today, that is on a nanny sector which is unregulated, which has no minimum qualifications.
If you actually wanted to increase the quality of the nanny system, to bring it anywhere near into line with existing approved child care services you would be looking at additional, substantial funding on top of it. Funding which Tony Abbott doesnt have, and which hes ripping out of the pockets of working families in the form of their existing child care rebates.
JOURNALIST: So you dont have any plans to look at other options other than (inaudible)?
ELLIS: We recognise that you need flexible solutions. This Government has substantially increased the number of in-home care places, which go to women and indeed men who are shift workers, who may have a child with a disability, or who may be in an area where there arent other approved services available. Weve actually got a system in place that (inaudible). On the other hand, were talking about an empty promise from an Opposition Leader, that his own backbench doesnt believe hes going to put into place.
JOURNALIST: Isnt the suggestion justified though since there is such a lack of child care places?
ELLIS: Well, as I said, weve seen an increase of 36 per cent in the number of approved services in Australia. Weve seen 500 additional centres just in the last 12 months alone. And if we have a look at the vacancy data, we see that around its 90 per cent of services that are indicating that they have vacancies at the moment. So, when you talk about whats actually happening out there in the sector, the reality is that child care in Australia - than its ever been - is more accessible, and is now of a higher quality. And were very proud of that record.
JOURNALIST: Can we talk just about the potential budget cuts, and what it will do for a Disability Insurance Scheme?
WONG: I see theres reports in the paper about the National Disability Insurance Scheme. Obviously Im not going to comment on budget speculation. I would say this: I think Australians across this country, many Australian families, understand first-hand the need for disability services in this country. Were Labor people, we understand the importance of dealing with those Australian who are in need. But we also understand that theres a lot of work to be done. But as Ive said, Im not going to comment on speculation.
JOURNALIST: So, What benefits would there be potentially in line then for?
WONG: I think youre asking me to do precisely what I just told you I wouldnt do, which is to speculate on what might or might not be in the Budget. I mean, the Prime Ministers made very clear her priority on this issue. We will keep doing the work through (inaudible) thats required.
ENDS