Ethnic Seniors Fair Go for Pensioners Rally

State Library Victoria May 31

Delivered by Phong Nguyen, Chairperson

The Ethnic Communities Council of Victoria has long been concerned about the rising cost of living for pensioners. We are pleased to be here today as part of the campaign for a fair go for our pensioners. For our ethnic pensioners many did not have the opportunity to build superannuation nest eggs.

Many of you helped build this great city of Melbourne and great State of Victoria. Many helped supply our goods and services as our post-war economy has boomed. But in your retirement many of you are now forced to rely on an insufficient pension. Nearly 40% of Australians receiving the pension were born overseas and this figure is rising. We are also fairly sure that more overseas born pensioners are on a full pension when compared to the Australian born older population.

Many full pensioners are struggling to make ends meet due to rising costs which are above CPI in areas like public transport, food, utilities and health care.These costs are rising above the pension levels which is linked to an aggregate consumer price index and average male weekly earnings. We know that health and pharmaceutical costs have increased by more than twice the inflation or CPI rate since 1990. And we know that seniors are big users of health and pharmaceutical services. $262 a week, or $219 a week each if you are a couple is simply not enough to live on with these rising transport, health care, household services and utilities costs.

While pensioners appreciate greatly the one-off $500 payment in the 2007 Commonwealth Budget this is still only a one-off payment. It is not guaranteed into the future.The reality of a pension rate that is too low remains. 25% of average male weekly earnings is no longer enough, particularly with the widespread prosperity enjoyed by others in the community today.

Further when the Victorian State Government took away the $80 pensioner motor vehicle full concession in 2004, many pensioners feel they were not adequately compensated. Most of the savings from this measure went to younger families, students and health care card holders.Pensioners only received an increase in local government rates concessions which was not as great as the lost motor vehicle concession amount.

The maximum pensioner rates concession of $168 is now far too low given that average property rates are now over $1,000 in Victoria. Research by Gavin Dufty at St Vincent de Paul has shown that for pensioners renting in the private rental market and using public transport the cost of living has gone up at a much higher rate than the pension has increased. He says that pensioners renting their homes and using public transport have seen increases in the cost of living at 30% greater than the inflation rate. So the value of their pension has decreased for many in the last ten years.

Even though the federal government is telling us pensions have increased against the CPI, the spending patterns of pensioners which are greater in areas like health and household services tells us otherwise. You all know from your experience and being here today that the pension level is too low.

In the future more Australians will have the chance to save for their retirement through superannuation. But today our pensioners demand a just pension rate. They demand what is reasonable and fair. They are sick of seeing their real income decline among greater levels of prosperity in the wider community.

ECCV calls on the Federal Government and the Federal Opposition to tell us how they are going to improve the pension rates before the federal election.

We call on the State Government to review aged pensioner concession rates. We call on them to respond to the statement of claims that has been drawn up by ethnic and other pensioners.

Our seniors deserve better. They deserve a decent standard of living. Thank You for your time today.