THE COST-OF-LIVING CRISIS – AS SEEN FROM THE ELECTORATE OF FOWLER

For most Australians in 2024, the cost-of-living crisis is their major current concern. While inflation has tipped down slightly, continued high interest rates and high prices for power, groceries and other necessities are hurting lower and middle income people. The electorate of Fowler – traditionally a Labor stronghold – feels this more than most other parts of Australia. At the 2022 federal election, local public figure Dai Le defeated Labor’s Kristina Keneally to win the electorate of Fowler – the second safest Labor seat in Australia. Voters believed they had been taken for granted for too long by the Labor Party. On Monday 4 March 2024, Dai Le addressed The Sydney Institute to explain how the cost-of-living crisis was having a particularly damaging effect on people in her electorate and suggested some ways the federal government might help.

THE COST-OF-LIVING CRISIS – AS SEEN FROM THE ELECTORATE OF FOWLER

DAI LE

Since my election to the 47th Parliament, my focus has been on the cost of living, especially for the people of Fowler in Western Sydney. My first question in parliament was to the Prime Minister in August 2022 – highlighting the cost-of-living crisis for the struggling families of Fowler. The PM’s response was to encourage me to engage in the Jobs and Skills Summit process, which I have done, and to have local forums – which I have also created myself, but back then, the prime minister didn’t acknowledge the impact the cost-of-living crisis was having on everyone.

My second question was on 27 September 2022 to the Treasurer asking the government to use the $50 billion windfall, mainly from Australian mineral and energy export royalties, to extend the fuel excise tax cuts to assist with Australia’s cost-of-living crisis, which is hitting everyone from students to pensioners and families, especially those in low socioeconomic and regional areas.

While the Treasurer agreed with me back then, that the government was raking in the billions in export royalties, he didn’t answer the question – naturally – but just said that the government wanted to ensure “affordable and a responsible way that’s right for the budget and right for the economy”.

Again, last week, I asked about cost-of-living related to our young people. And the prime minister did not quite get to his answer. He got halfway and sat down. So, here we are in 2024 and the government has just started to talk about cost-of-living, and this just prior to the Dunkley by-election. In addition, the government has changed the Stage 3 tax cuts. Initially, I had been told this could not be done.Change is good.

A lot has changed since I last spoke at The Sydney Institute in November 2010. I wasn’t even a councillor then. And here I am, back again, 14 years later, as the first independent, and a woman of refugee background, to win the second safest Labor electorate in the country – Fowler. Words cannot express my heartfelt gratitude to my community in Fowler for placing their trust in me, to represent them. And I didn’t do this on my own – it’s teamwork, and the community’s backing. And thanks to Gerard and Anne Henderson for continuing to breathe life into this think-tank.

In my maiden speech in September 2022, I talked of the forgotten people in our community and their struggles – from the lack of health funding which left one of our major hospitals – Fairfield Hospital – without wifi, to the working Australians who have had to juggle mortgages, pay rent, work in factories, and run their small family businesses. At every opportunity in the chamber since my election, I have spoken about the impact the cost-of-living crisis has had on my community in Fowler and the Western Sydney community at large. Indisputably, the sharp rise of prices in groceries, fuel, bills and housing has plagued the minds of many hard-working families and individuals as they struggle to maintain financial security.

For those who have not crossed over the tollways to visit Fowler in south west Sydney, we are home to more than 170,000 constituents with over 150 ethnicities. Fowler encompasses an area from Chipping Norton, Warwick farm, Liverpool CBD, Mount Pritchard, Bonnyrigg, Lansvale Cabramatta, Canley Vale, Canley Heights and Fairfield East, Carramar in the east to Edensor Park, Bossley Park, St Johns Park, Greenfield Park, Wakeley and Abbotsbury in the west.

While my community and many in Western Sydney are struggling, I often stand in the House and celebrate our amazing, unique and vibrant communities. We are one of the most, if not the most, multicultural and diverse communites, with most of our constituents identifying as having heritage ties to Vietnam, China, Iraq, Assyria, Italy, Spain, Serbia, Croatia, Pacific Islanders and the horn of Africa – just to name a few of the major communities

Here are just some stats to give you a picture:

• Over 50 per cent of Fowler’s population are born overseas, or have a parent/parents born overseas
• 16 per cent hail from Vietnam
• 13 per cent identify has having Chinese heritage
• and 7 per cent hail from Iraq.

We also have the highest population of bilingual speakers in NSW, at 68.6 per cent which is more than double the national average. Fowler also has a range of up to 40 different religions and faiths being practised, with the most popular being Roman Catholicism and Buddhism.

Many of our constituents are employed within the manufacturing, health care and social assistance industries. We are a labor-intensive community – 40 per cent of workers in Fowler have employment in manufacturing compared to the national average of 5.9 per cent. Currently 27,637 small businesses operate out of Fowler which makes up 1.15 per cent of all small businesses in Australia. According to the ABS, Fowler’s unemployment rate is at a staggering 8.6 per cent, which is almost double Australia’s unemployment rate of 4.9 per cent.

The ABS reports that in 2021, the personal weekly incomes of those residing in Fowler average at $521 which equates to an annual income of $27,092. This figure is quite low compared to the national average of $805. More than 1/5 of households earn less than $650 on their weekly income and only 16.5 per cent of households earn more than $3000 in weekly income. Much of the Fowler area falls within the first quintile of the Index of Relative Socio- economic Disadvantage, the lowest score, which indicates that the suburbs in Fowler are more disadvantaged and vulnerable cost-of-living pressures compared to other electorates. According to the ABS’s socio-economic indexes, Fairfield East, an area in my electorate, ranks number one as the most disadvantaged local area in Greater Sydney.

As I mentioned, concern at the cost-of-living crisis has been at the forefront of an overwhelming number of my constituents. With a large population in Fowler comprising lower- and middle-income people, we are bearing the brunt of rising interest rates, high power prices, fuel prices, soaring groceries and food costs, and other necessities.

Many of our constituents are doing it tough, struggling to make ends meet and provide for their families and loved ones.

We have constituents who’ve visited our office to share their struggles with energy prices, asking for any support. They expressed frustration at the government’s lack of initiative in responding to the cost of energy increase. A local business owner shared that from 2023 June quarter to the April quarter, his energy bill went from $7,800 to $11,600 – that’s a 67 per cent increase in his electricity bill. Our energy prices will not be heading downwards anytime soon. Since 2000, electricity prices have increased by 238 per cent and gas prices have increased by 319 per cent. For a comparison, the CPI has increased by only 90 per cent over the same period.

Another constituent, living on a Centrelink payment, expressed her inability to pay her energy bill in full and had to organise a payment plan to have sufficient funds for other necessary expenses like mortgage payments and hospital fees. Here, we are seeing the adverse effects of people struggling to make ends meet, having to prioritise one basic need over another. More than a quarter of people rank their energy bill amongst their top three stressful expenses.

According to NAB, with petrol prices reaching record highs, almost 50 per cent of Australians had to cut back on car journeys to save on fuel. Yet, 46.1 per cent of workers in Fowler rely on their car as their main method of travel for work. With the lack of public transport, you cannot blame people for turning to cars because of the decades of failed successive government policies to increase spending to build the necessary infrastructure to support working Australians and families to move around easily and affordably.

In the face of rising fuel costs, many constituents are “petrol station” hopping to find cheap fuel, or are resorting to carpooling, when possible, in order to get around. This, of course, extends the amount of travel time but also serves as an inconvenience for many. I have called on the government to extend the fuel excise tax cut to alleviate the pains of the cost-of-living in the Western Sydney community and in Fowler. Many individuals are unable to sustain the extent of travelling due to the exponential rise in prices of using their car and as such, are heavily penalised by our government just so that they can make a living.

Not only do our families have to face the costs of petrol prices, food and insurance costs are also soaring, increasing cost of living pressures and food insecurity. ABS data has revealed that annual food inflation amounted to 4.5 per cent in the December 2023 quarter. Many families and even schools are reaching out to us looking for organisations that could support the food crisis. Kids are not going to school because they are not being fed.

Against the backdrop of limited competition in the supermarket industry in Australia, claims of price gouging has sparked public outrage. More than $1 billion in profits have been pocketed by major supermarkets in 2022-2023. According to a recent report by Woolworths, people are not buying fresh produce anymore because they can no longer afford them. This is concerning. A basic healthy diet can cost city dwelling families, who are struggling, a third of their household income. The fate of food prices continues to be uncertain, making many Australians vulnerable and unable to keep food on the table.

The number of tertiary education pursuers in Fowler is 38,000 and is growing. They are burdened by HECS indexation in addition to the rising cost of living. This pressure surrounding their future financial debts can rob them of their focus to provide for their families and further their education. In Fowler, youth and adolescents are disproportionately affected with average unemployment rates between 12.9 per cent to 30.5 per cent which is three times greater than the national average of 10.3 per cent. But it is imperative for this disadvantaged group to pursue education and skill-development that can open prospects for secure and fulfilling career opportunities.

I have continually called on the government to freeze the indexation on HECS debt, as it’s discouraging our young people from low socio-economic areas, to pursue higher education due to the costs in furthering their knowledge and education following high school. And even if they do, they are burdened with a debt that they probably can’t get out of, which would impact their ability to get a loan for a house in the future. Millennials and Gen Z’s mental and social health are at risk as they try to balance studying in the backdrop of rising rent and low-paid work. Young people at the forefront of this crisis – surviving instead of living.

Many young people are having to eliminate certain items from their budget to survive in these precarious times such as fresh produce, therapies and toiletries. Students are forced to sacrifice opportunities to further their studies and quality time with families and friends to take on more shifts at work. The main challenge for young people and students is that they cannot get secure and high-paying employment. Especially since wages are lower for both apprenticeship and traineeship positions.

The NSW Council of Social Services has reported that 74 per cent of people aged 25-34 are experiencing housing stress and approximately half of this group are struggling to pay their bills. In the state of the world now, it has become increasingly difficult for young people to independently set up a secure future – this is going to further increase the already apparent inequality. It also contributes to a vicious cycle where those residing in non-affluent areas, such as Fowler, are more at risk of financial instability and higher rates of health and social problems, yet they do not have the means or accessibility to facilities to escape from this fate. Soaring costs are enabling the widening of health inequalities, weakening food security and diminishing health and social care.

Unlike other areas in Greater Sydney, Fowler is home to a great number of immigrants and refugee – 60.9 per cent of our constituents were born overseas and 77.3 per cent of families consist of both parents being born overseas. This is why my focus is to ensure that the aspirations of these families to create a better life for themselves in Australia are met with adequate support. It is my intention that my community is recognised for the resilience they’ve demonstrated under this cost-of-living pressure. It is my resolve that this cost-of-living crisis is not solely felt on the backs of hard-working people trying to provide for their loved ones.

During the COVID-19 pandemic, Fowler and other parts of Western Sydney were undeniably hit the hardest by the strict lockdowns that were implemented. In Fowler, we are still experiencing the enduring ramifications that the pandemic had on jobs, small businesses, housing affordability, food security, household energy and the general well-being of people on an elevated level. Coming out of the pandemic, businesses were passing on rising production costs to customers. Prices continue to be pushed upwards. A recent poll by the Australian Council of Trade Unions found more than 50 per cent of 3000 people were forced to cut back spending on essentials or rely on savings to get by. Additionally, it seems one in four people are having to skip meals or look for extra employment to make ends meet.

Financial stress with housing affordability has also become a pressing issue. Not only are homeowners being hit with rising rates, but the reduced availability of rental properties has also exacerbated rent levels higher than ever before. A report by Anglicare in 2023 showed that our essential workers – nurses, childcare and aged care workers, hospitality workers and teachers on award-wages – are paying more than a third of their income on rent. There has been a boom in demand for share houses across Sydney in the midst of our ongoing housing challenges.

The escalating concern over the cost-of-living crisis has made it such that voters are less concerned and are becoming dismissive of other issues. This was demonstrated in the recent referendum where a survey from JWS Research revealed that 8 in 10 voters wanted the government to focus on relieving the rising cost of living, compared to only 1 in 10 feeling the same about the Voice.

Sixty per cent of voters do not think their incomes have kept up with inflation over the last year and they cannot continue to sustain their quality of life. From the same survey, people expressed their understanding that “our shopping trolleys are half full, petrol is expensive, and all utilities are going up”.  Fifty-two per cent of voters, more than half the electorate, perceive the cost-of-living as a critical policy test for the Labor government and considered this issue as the highest priority for their vote. This is an exponential jump of 32 per cent from last year.

The sharp increase in the cost-of-living also poses a threat to people’s mental health – financial vulnerability and worries are strongly associated with poorer mental health which makes it harder for people to make logical financial decisions. According to a report by Beyond Blue, 83 per cent of people reported that the rising cost of living has had a negative effect on their mental health. One in five of these respondents reported that the impact was extreme. It’s a tough time for people grappling with cost-of-living pressures, high inflation, continual rising rates and economic uncertainty.

Families are having to make proactive and frugal choices when it comes to everyday essentials. They are having to reduce consumption in all areas of life to ensure that their spending is sustainable. They are driving less, finding cheaper fuel, switching to cheaper produce and groceries and cutting back on energy. Even with these changes, it might still not be enough for some families to stay afloat in these trying times.

I’m standing here not for you to feel sorry for the state of the people in Fowler. People in Fowler are the most resilient, generous and hard-working people. I stand here to remind all of us that they are the backbone of Australia – teachers, nurses, retail workers (etc) – who want a fair go. And I am proud to be able to represent them, so they have a voice in the halls of parliament.