After years of unsuccessfully calling for a poverty taskforce or inquiry, Canberra Liberals leader Elizabeth Lee has had a minor victory: the Legislative Assembly today agreed to her motion to establish a Select Committee on the Cost-of-Living.
However, the Committee will not, as she intended, be a two-person body, chaired by a Liberal MLA. The Greens’ Johnathan Davis will chair the Committee, with Labor’s Dr Marisa Paterson as deputy chair. The Liberals will be represented by Nicole Lawder.
Ms Lee’s motion stated that the prices of essential goods and services (including medical, education, housing, electricity, gas, and transport) had significantly increased over the last five years, and continued to rise. She feared the worst was yet to come, and worried that escalating prices for essential goods and services would hit lower income households hardest. The ACT Council of Social Service (ACTCOSS)’s 2022 Cost of Living Report, Ms Lee noted, found that Canberra had the highest average weekly earnings in Australia, but one in 10 Canberrans lived in poverty.
- Canberra an especially hard place to be poor: Anti-Poverty Week report (18 October 2022)
Ms Lee proposed that the Select Committee would inquire into and report on the cost-of-living pressures facing Canberrans; the drivers of the cost-of-living pressures in Canberra; the Government’s fiscal policy response to the cost-of-living pressures; measures to ease the cost-of-living; and any related matters.
Andrew Braddock (Greens) amended Ms Lee’s motion in its entirety, beginning by removing any reference to increased prices or their effect on lower income households.
Under the amendment, the Committee will conduct expert, stakeholder, and community consultation on policy measures to further support low- and moderate-income Canberra households to manage cost-of-living pressures.
It will identify cost-of-living pressures low and moderate income households face that are not alleviated by ACT or Commonwealth Government assistance programs; consider advice and ideas on how the ACT Government can further help address cost of living pressures; provide timely recommendations to help inform the considerations of the Expenditure Review Committee of Cabinet in the Budget process; and look beyond this economic cycle to make longer term recommendations on cost-of-living trends to inform the development of future budgets.
The committee will report to the Assembly by Thursday 11 May.
Canberra Liberals
Ms Lee welcomed the establishment of the committee, but was disappointed a Greens MLA would chair the committee.
“What we have seen continually and even as recent as yesterday, is ACT Greens putting their political alliance with the Labor party above the community,” Ms Lee said.
Ms Lee referred to mental health minister Emma Davidson voting down a Liberal motion for all party leaders to ask the Prime Minister to reverse cuts to mental health – even though, the Liberals remarked, Ms Davidson had campaigned for the Federal Government to deliver free and unlimited mental healthcare via Medicare.
“I have attempted multiple times this term to get support from Labor and the Greens to work with the Canberra Liberals on how we can address cost of living pressures facing thousands of Canberrans,” Ms Lee continued.
“This is the first time Labor and the Greens have agreed to a dedicated committee to look into these important issues.
- Government rejects investigation into ACT poverty (16 February 2021)
- Stanhope: Why did Government veto poverty taskforce? (17 February 2021)
- Liberals and ACTCOSS call for more support for vulnerable Canberrans (6 October 2021)
- Liberals propose inquiry into ACT poverty (13 October 2022)
- Governments respond to community sector’s poverty plea (21 October 2022)
- Liberals: ACT government must address cost of living (29 November 2022)
“How can Canberrans have any faith that a committee chaired by members of the Labor-Greens government act in the best interests of the community when they have been the driving force of the policy agenda for over 20 years, and we have not seen things improve for our vulnerable Canberrans?
“The fact is that Labor and the Greens have been brought kicking and screaming to act on cost-of-living pressures because even they can no longer ignore the plight of thousands of Canberrans.
“The Canberra Liberals will continue to ensure those most vulnerable in our community are heard and the drivers and impacts of cost-of-living pressures are addressed.
“I look forward to the final report from the committee when it is put forward in May this year,” Ms Lee concluded.
ACT Greens
“We know Canberrans are struggling with the rising cost of living,” Johnathan Davis said. “Canberrans have noticed all of their bills going up – rent, groceries, utilities, petrol, healthcare – everything is getting more expensive.
“As chair of this committee, I am committed to leading an inquiry that will bring together experts, peak stakeholders, and the broader community to find real and practical solutions to address this cost-of-living crisis. That’s why the committee has committed to a reporting timeframe that ensures recommendations made to the ACT Government can inform the development of the 2023/24 Budget.
“I understand what it feels like to be broke in a rich city. I grew up in public housing. I’ve been homeless. I’ve worked multiple minimum wage jobs at one time to make ends meet. I’ve put off medical procedures because I couldn’t afford them. Based on these experiences, I am committed to this important work which has the power to deliver real outcomes for Canberrans doing it tough.”
ACT Greens leader Shane Rattenbury said that cost of living was an issue at the forefront of the Greens’ agenda at all levels of government.
“Addressing cost of living issues is at the top of the Greens agenda,” Mr Rattenbury said. “The Greens will always work hard to give a voice to the most vulnerable in our community, and those who are doing it tough.
“At the Federal level, last year my Australian Greens colleague, Senator Janet Rice, established a Senate inquiry into poverty and the cost of living. The Greens are working hard at every level of Government to ensure that the cost-of-living crisis is at the forefront of conversation.
“There are many factors that contribute to the rising cost of living. Federal issues like inflation and interest rates chief among them. At the local level, the ACT Greens are committed to doing everything we can to support Canberrans struggling with the rising cost of living.
“This inquiry will be really important to identify what levers we have here to help make life a little easier for Canberrans. I encourage Canberrans to participate in the process to ensure the committee can deliver for Canberrans.”
