Joining me on the line now is Senator Paul Scarr. Senator, thanks for your time.
Senator Scarr
Good to be with you, Jason and thank you for raising this issue.
Jason Matthews
The survey reveals Paul an extreme mortgage stress rate of, let’s call it 71% in your electorate, Ipswich. Can you explain what that figure means for a household in Ipswich? What does that daily struggle look like for families in the region?
Senator Scarr
Well, it means that they’re really struggling to simply afford the necessities of life, right? So, paying for their housing costs, food, clothes, and there’s nothing left after that. So, they’re living day to day, paycheck to paycheck, and the really disturbing thing Jason is that many people under this sort of mortgage stress are turning to credit cards. So, trying to use multiple credit cards to make that mortgage repayment.
Jason Matthews
What are they having to give up? Like, I’m looking into a study that’s come out today, and we’ll talk to the food bank later, that hundreds of thousands of Queenslanders are going daily without food now. Is food one of them? What sort of stuff is being given up so they can just pay the mortgage?
Senator Scarr
Food is an issue, and we know since Labor came to power, food prices have gone up by 15%, and there’s a wonderful organization out at Ipswich called Ipswich Assist, which is a food bank, and I’m in close contact with them, and they say, over the last few years, because of these high interest rates, because rents have gone up, they’re now seeing working families so people they’ve never seen before are coming to Ipswich Assist to get food to feed their families. So, that’s a major issue. The other thing we hear about in our area is that local families are taking their kids out of sport, other recreational activities, dancing classes, swimming classes, whatever they must do to try and bring those costs down. So, this is having a real impact on Ipswich families.
Jason Matthews
Kids are always the innocent victims in all of this, aren’t they? Why is Ipswich more vulnerable than other parts of Queensland?
Senator Scarr
There’s a lot of first home buyers in Ipswich. So, there’s been a lot of expansion out in Ipswich, places like Ripley, Springfield, where my office is, Deebing Heights, so there’s been a lot of housing construction. That means there’s new home buyers. So, they’ve gone in with deposits, high mortgages at the start of their mortgage history, if you like, paying off their first home, and so when those interest rates have gone up, and we’ve had 12 interest rate increases since Labor came to power, and only three decreases, then it’s had a real impact on them, as opposed to people in more established suburbs.
Jason Matthews
I know you spend a lot of time in the Senate. I saw Labor yesterday taking credit for three interest rate cuts recently, under their watch. Have they just magically forgotten about the twelve increases?
Senator Scarr
They don’t tend to remember the 12 increases, they only talk about the three interest rate cuts, and as you mentioned, one of the disturbing things about the inflation rate that came out last week, it’s now up at 3.2%, and that’s higher than the Reserve Bank’s band of 2 to 3%. As you said, we didn’t get that Christmas interest rate cut on Melbourne Cup Day. It looks like interest rates are going to stay higher for longer, and that’s bad news, because a lot of these people are just holding on. It’s mortgage repayment to mortgage repayment, and sometimes they can get extensions on their mortgages, their loan terms, but they’re really under so much stress, so they need relief.
Jason Matthews
What’s the Coalition’s answer to this? We know the shortfalls of the Labor Government. What’s the Coalition’s answer to this? How are you going to get housing prices back under control? How are you going to get rents back under control? This 5% deposit match thing is an absolute joke. We’ve seen massive increases in just the last month in property values. What do you propose that the Coalition does?
Senator Scarr
It’s a good point you raise. One thing we shouldn’t do is introduce schemes like that 5% deposit scheme, which, from my perspective, is just putting young people in a difficult position. So, buying your first home with a 5% deposit, that’s causing an increase in the market prices for homes, and that’s been evidenced in the property market. So really, this sort of government-led scheme can really have terrible unintended consequences, especially young people buying their first home. So, the first point is, don’t introduce schemes like that that are just going to put pressure on housing prices. The second point is, we need to get government spending under control. When we get to the end of this term of Parliament, it’s expected federal government debt will be 1.2 trillion dollars. That means we’re paying $50,000 every minute in interest just on the debt, so not repaying the debt, just on the interest on the debt, and that has an inflationary impact, and that’s why we’re seeing inflation up to 3.2%.
Jason Matthews
Senator Paul Scarr is joining me now on the program. Senator Paul Scarr, appreciate your time this morning. I know you are in and out of the Senate, so if you need to run, you just let me know. A text has come through Anthony from Yeerongpilly. He says, while you have a good senator there, can you get him to confirm that Net Zero is a crock and causes expensive energy for his people. I noticed there’s a report in the Courier Mail today. You haven’t been asked yet or haven’t responded. What’s your position on Net Zero? This is the big issue now, particularly within the Coalition. We know where the Nationals stand. Where do you stand Senator?
Senator Scarr
First, can I just talk about electricity prices? Since the Labor Government came to power and have been rolling out their plan for Net Zero by 2050 relying on renewables, electricity prices have gone up by forty per cent. So, that’s just unacceptable, and it’s hurting your listener at Yeerongpilly. It’s hurting industry. We see the issues across major industry. So, my position is we cannot have Net Zero at any cost. It’s just not working. So, we need to produce a solution where we have affordable electricity prices, a reliable electricity grid, and we still do our fair share in terms of reducing emissions. Now, the National Party has put out their position, the Liberal Party, we’re still going through our internal processes, but can I just tell you listeners, we are very focused on this issue, and we understand the concerns in the community, so we’re going through those processes, and we’re certainly looking to come to a landing over the next month or so.
Jason Matthews
The timing is likely to be just before Christmas, as reported.
Senator Scarr
Absolutely.
Jason Matthews
What about Sussan Ley? She’s under a lot of pressure. Opinion polls are the lowest of the Coalition have ever experienced. She’s got her own rating of -33. Do you want to get the Coalition out of trouble and back on track?
Senator Scarr
I back Sussan to be given a fair go. The fact of the matter is, Sussan was elected in May after we suffered a devastating election result, including in our home state of Queensland. We lost so many great local members. I think it’s important that we work through these debates and come to a position where Sussan is given a fair go. So, the hardest job in politics is being Opposition Leader after your party suffered a stunning election defeat, and that’s the position Sussan is in. So, from my perspective, I want to be as positive as possible, do whatever I can to support the team and fulfill our obligation to be an effective Opposition and to give an alternative to the Australian people.
Jason Matthews
Well, you got to get cracking, mate, because I have callers every single day on this program saying they’re leaving the Liberal Party in droves, and they’re going to a home called One Nation. So, you’ve got to get this party sorted out, mate, and start giving us some policy, so people can decide, and we’ve got to hold a government, the worst government I’ve ever witnessed, and the worst Prime Minister I’ve ever witnessed. We’ve got to start holding them to account, but you’ve got to clean up your own backyard first.
Senator Scarr
Absolutely, I hear you.
Jason Matthews
Great. Senator Paul Scarr, you’ve got a massive issue in Ipswich now, amongst a lot of other stuff on your plate. Good luck trying to fix it all.
Senator Scarr
Good on you, mate. Thank you to you and your listeners.
