ACT punches above its weight in research funding

I was delighted with yesterday's announcement of Australian Research Council funding, particularly for projects undertaken by local researchers.
SENATOR THE HON CHRIS EVANS

Leader of the Government in the Senate

Minister for Tertiary Education, Skills, Science and Research

Dr Andrew Leigh MP

Federal Member for Fraser

MEDIA RELEASE

6 November 2012

ACT punches above its weight in research funding

Universities in the Australian Capital Territory will receive $39.3 million for 112 research projects that will benefit Australians, drive innovation and keep Australia at the forefront of science globally.

The Australian Research Council’s 1014 major grants, worth a total $360 million, will also increase opportunities for Indigenous researchers and researchers in the early stages of their careers.

Fraser is one of 150 electorates, but has received 10% of total available research funding for 11% of all projects.



Federal Member for Fraser, Dr Andrew Leigh, today congratulated the Australian National University, the University of Canberra and the CSIRO on their success.

“Canberra always punches above its weight for research investment and I’m delighted to see this tradition continue.

“Research is a crucial part of Australia’s economic development and I’m delighted as a part of the Gillard Government to recognise the role research plays in keeping us innovative and competitive.

“Fraser would have to be one of the most research-intensive electorates in Australia. Research and innovation is a key part of Canberra’s economy and it’s great to see Government investment continuing in Canberra,” said Dr Leigh.

Minister for Science and Research, Senator Chris Evans, said the Gillard Government is making an investment in research and researchers to help deliver solutions to national problems and improve the lives of Australians.

“The projects span a variety of issues – mapping the universe, reducing Indigenous incarceration, gravitational waves, energy efficient lighting, the role of mentoring, diseases and parasites,” said Senator Evans.

“This research will deliver results that not only benefit Australians, but keeps Australia at the forefront of global science,” Senator Evans said.

The new research projects will be funded under the ARC Discovery Projects, Discovery Indigenous, Discovery Early Career Researcher Award and Linkage Infrastructure, Equipment and Facilities schemes. More information is available at http://www.arc.gov.au/
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Climate Change Mythbusters: An Economy-Wide Carbon Price

An edited version of one of my opinion pieces appears in The Australian today.


ONE of the myths in the carbon pricing debate has been the claim that "Australia has the world's only economy-wide carbon price" ("carbon" being shorthand for four greenhouse gases: carbon dioxide, methane, nitrous oxide and perfluorocarbons from aluminium smelting).

Over recent years, members of the opposition have made such a claim in parliament more than 50 times. The theme has also been picked up by many newspaper articles. Indeed, even in this newspaper it has been claimed that Australia's carbon price - uniquely in the world - covers the entire economy.

In fact, Australia's carbon price excludes agriculture, smaller emitters and household transport (although some businesses will face an effective carbon price via changes to the present fuel tax regime). Overall, it captures about 60 per cent of total carbon emissions.

One way that the opposition has "truth-proofed" it is by adding an authoritative source: the Productivity Commission. In a 2011 review of global action on climate change, the commission found that while many other countries had carbon prices, none covered all emissions. The Coalition spinners took this truth ("no country has an economy-wide carbon price"), and turned it into a falsehood ("Australia is the only country with an economy-wide carbon price").

Ideally, greater scrutiny of the Coalition might also focus on the underlying issue: whether taxes should be broad-based or narrow-based. In the debate over the goods and services tax, John Howard and Peter Costello argued strongly that narrowing the base would be distortionary, and that fairness demanded broad-based taxation. Yet today, his successors are effectively arguing the opposite: that carbon pricing should be as narrowly based as possible.

The fact is that the Australian carbon price is quite typical of international schemes. For example, the emissions trading scheme in California will cover 85 per cent of that state's emissions. Ten other US states are going ahead with carbon trading schemes. China's emissions trading pilots will cover 200 million people. Indeed, if the Australian carbon pricing scheme were internationally atypical, we would not be linking to similar schemes in the European Union and New Zealand.

Opposition to carbon pricing need not be in the DNA of conservative parties. In 1989, it was president George H. W. Bush who first proposed an emissions trading scheme to deal with acid rain. That scheme met its targets at one-third of the projected costs. In Britain and New Zealand, conservative leaders who back emissions trading schemes do so because they recognise that this approach captures the ingenuity of the market.

Under the leadership of Howard, Brendan Nelson and Malcolm Turnbull, the Liberal Party was a party that believed in emissions trading. During this era, many members of the Liberal Party articulately explained why market-based approaches were the most efficient way of cutting carbon emissions. Unfortunately, Tony Abbott has walked away from that proud legacy.It is ironic that China (a nominally communist country) is more committed to market-based approaches to reducing carbon pollution than the Liberals.

Australia's emissions trading scheme is almost boring in its adherence to standard economic wisdom on how best to design carbon markets - which is why we'd be mad to drop out and start jeering from the sidelines.

Andrew Leigh is the federal member for Fraser. www.andrewleigh.com.

The claim has been most often repeated in The Australian, which is why I was pleasantly surprised when they agreed to run the piece. However, they didn't want to include my list of those journalists who on the pages of The Australian have either made the claim themselves, or quoted Tony Abbott as making it (without pointing out that the claim is untrue). Here's a sampling:

  • “We are the only country in the world that has put in place an economy-wide carbon tax of more than a symbolic level, and done so at a punitive level far above global levels.” (Terry McCrann, 24 March 2012)

  • “And as noted by the Productivity Commission, Australia is the only country with an economy-wide price on carbon; the efforts of other countries tend to be more selective and directed at particular industries.” (Judith Sloan, 7 July 2012)

  • “In contrast to Labor's rhetoric, [Gary Banks] cautions that no other country now imposes an economy-wide carbon tax or emissions trading scheme.” (Michael Stutchbury, 26 March 2011)

  • “Last night business groups were already calling for a new inquiry into how a carbon price in Australia would compare with key competitor countries such as Brazil and Indonesia. And Tony Abbott maintained his campaign, saying no other country was contemplating an economy-wide carbon price.” (Sid Maher, 10 June 2011)

  • “Tony Abbott said the report showed that there was "no other comparable country which is imposing an economy-wide carbon tax on itself, there is no other comparable country which is imposing an emissions trading scheme on itself'.” (Sid Maher and Joe Kelly, 10 June 2011)

  • “Tony Abbott said the report showed there was no other comparable country that was "imposing an economy-wide carbon tax on itself'.  "What that means is that any move towards a carbon tax or emissions trading scheme would be an economic own-goal. It would be an act of economic self- harm by Australia," the Opposition Leader said.” (Sid Maher, 10 June 2011)

  • “It is not all bad news for the Coalition. Abbott will seize upon and promote the statement that no other country has an economy-wide tax on greenhouse gas emissions. The report contradicts the previous week's final Garnaut review, which argued Australia was left behind by much of the world on climate change action.” (Paul Kelly, 11 June 2011)

  • “Tony Abbott said the package was "a world first" and accused Ms Gillard of using her carbon tax plan as a cover for a redistribution of wealth, describing it as "socialism masquerading as environmentalism". Noting that "no other country on the face of the earth" had an economy-wide carbon tax, the Opposition Leader said 10 per cent of households would receive no compensation, while 60 per cent would be worse off or "line ball".” (Sid Maher, 11 July 2011)

  • “Noting that "no other country on the face of the earth" had an economy-wide carbon tax, Mr Abbott said 10 per cent of house-holds would get no compensation, while 60 per cent would be worse off or "line ball". "This is a redistribution pretending to be compensation, it's a tax increase pretending to be an environment al policy," he said. "It's socialism masquerading as environmentalism."” (Matthew Franklin, 11 July 2011)

  • “Please explain why no other comparable country with resource-rich and trade-exposed industries is imposing an economy-wide carbon tax?” (Janet Albrechtsen, 13 July 2011)

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Energy efficiency grants now open

More grants are available to improve energy efficiency for community groups. These grants are offered as a part of the Gillard Government's Clean Energy Future package and are a great chance for community organisations to reduce energy use and save money. More information is below.
JOINT MEDIA RELEASE

Andrew Leigh MP

Member for Fraser

Gai Brodtmann MP

Member for Canberra

31 October 2012

ENERGY EFFICIENCY GRANTS TO CUT COSTS STRENGTHEN OUR LOCAL ECONOMY

Dr Andrew Leigh, Federal Member for Fraser, and Gai Brodtmann, Federal Member for Canberra, today opened a new round of national funding for three energy efficiency programs designed to drive smarter energy use across the community.

“These grants will help the ACT Government, businesses and community organisations save money and cut pollution by improving energy efficiency in buildings, homes and streetscapes,” said Dr Leigh.



“The money saved from energy costs can be put right back into community projects. It also boosts the bottom line for small and medium businesses. These grants will strengthen our local economy at the same time as tackling pollution,” said Dr Leigh.

Ms Brodtmann said the ACT Government was already leading the way on reducing its carbon footprint. “The ACT Government has reduced its energy use by using grants such as these to upgrade 12 Community Hubs. Other not-for-profit organisations, such as sporting and community groups, can also access these grants to upgrade local facilities.”

New funding rounds for the following three energy efficiency programs opened today:

  • Community Energy Efficiency Program (CEEP): a $200 million program to help local government and not-for-profit and organisations undertake energy efficiency upgrades to community infrastructure such as council buildings and recreation centres.

  • Low Income Energy Efficiency Program (LIEEP): a $100 million program to demonstrate smarter energy use and provide practical advice and assistance to low income households across Australia.

  • Energy Efficiency Information Grants (EEIG): a $40 million program to support small and medium sized businesses and community groups by providing tailored information and advice on how to save energy and cut costs with smarter energy choices.


“Today, I encourage all eligible applicants to apply. The government is committed to promoting better energy efficiency – it saves money, cuts pollution and improves our living standards at home and in the community. These are the benefits of moving towards a clean energy future,” said Ms Brodtmann.

The guidelines for each of these programs are now available and applications open on the 30 October. To find out more about the package of energy efficiency programs visit: www.climatechange.gov.au
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The Effects of Household Stimulus Payments

In 2008-09, I was seconded to Treasury. It was an extraordinary time to be there, seeing how a good response to fiscal stimulus gets crafted. And while I was an SES officer, my short stint meant that I did much more listening than talking.

But one thing I can claim credit for is the suggestion that when the $900 tax payments were being delivered in 2009, that the timing should be randomised by postcode, so as to allow the possibility of a subsequent randomised evaluation.

I’m pleased to report that such an evaluation has now been done, with my former ANU colleagues Emma Aisbett and Ralf Steinhauser (along with Markus Brueckner and Rhett Wilcox) combining a list of random postcodes with household spending data from AC Nielsen’s Homescan survey.

While their research finds little impact on some types of spending, it’s not hard to see why this is at odds with other studies  - including mine-  which find a large impact of the Australian fiscal stimulus on expenditure.

The problem is that while the Homescan dataset is the only one that lets you measure week-to-week spending patterns, it only captures groceries. So if someone spends their cheque on a washing machine, bicycle or restaurant meal, it gets missed.

The other factor is that this new study is very short-term. So if groceries spending went up after a two-month delay, it wouldn’t be captured.

So it’s perfectly consistent to note that the stimulus had a big overall effect, while also observing more limited impacts on narrow categories of spending. And I think the totality of the evidence is useful  - unlike some evidence from the US, Australian households are typically not so badly off that their initial response to receiving a $900 payment is to stock up the fridge.
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Paternity Leave until 1 Nov

I'm on paternity leave from parliament from Mon-Thu this week (thanks to the Opposition granting me a rare pair).

In between helping Gweneth wrangle our 5 year-old, 3 year-old and 1 month-old boys, I'll be checking email sporadically. But I may be a little slower in responding than usual. And while 16-hour parlimentary days are tiring, I have a feeling that I'll be working harder still at home this week!

Incidentally, two-week dad and partner pay starts on 1 January 2013.
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Meet the Press - 28 October 2012

For a 20th anniversary segment, I appeared on Meet the Press with Liberal MP Joshua Frydenberg, and interviewers Hugh Riminton and Misha Schubert. Topics included why I'm in the ALP, what the Asian Century White Paper means for Australia, and the importance of education and entrepreneurship to our nation's future.

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Working Credit Works

When I was an economics professor at the Australian National University, I wrote an evaluation with Roger Wilkins of the 'Working Credit' program, which allows people who are long-term unemployed to get some earnings without losing any of their income support.

We found that the program was surprisingly effective, given how little it costs. Our results are published in the latest issue of Fiscal Studies, and were written up in The Weekend Australian by Patricia Karvelas.
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Free financial information seminar in Belconnen

Some of the terrific work undertaken by the Department of Human Services includes free financial information sessions. There's one coming up next week in Belconnen.
MEDIA RELEASE

Andrew Leigh MP

Member for Fraser

INFORMATION TO SECURE YOUR FUTURE

People of Canberra are encouraged to learn how to secure their future by attending free financial information sessions this month.

Dr Andrew Leigh, Member for Fraser, said the Financial Information Service seminars are a regular, local, practical avenue for people of all ages to gain information on a range of important topics.

“The Australian Government has offered the Financial Information Service for over 20 years, educating millions of people by providing information to help them plan for their future security,” Dr Leigh said.

“The experienced Financial Information Service Officers can show you how to make informed financial decisions and help you understand the consequences of those decisions in the short, medium and long term.

“These seminars are designed to help you understand the basics around shares, investment, property and superannuation as well as options in retirement.

“If you are considering investing in property or shares, changing jobs or superannuation accounts, preparing for retirement or moving into residential care – come along to understand all the financial options available to you.”

Upcoming local seminars at Belconnen Premier Inn, 110 Benjamin Way Belconnen:

Financial Planning and Choosing a Financial Planner

Thursday 1 November

6pm to 8.30pm

“These seminars are not just for people receiving Centrelink payments ­– they are open to anyone interested, and they are popular so bookings are essential,” Dr Leigh said.

“Last financial year, over 80,000 people attended 2,700 seminars held across the country.

“Come along to take advantage of this free service and learn valuable savings steps so you can have more lifestyle choices in the future.”

To find out more about Human Services free Financial Information Service seminars visit humanservices.gov.au/fis.

For FIS seminar bookings call 13 6357 or email fis.seminar.bookings {at} humanservices.gov.au
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Lex Luther strikes again

Yet more misleading information from Joe Hockey today on economics. I've done a substantial amount of work helping my constituents find their lost super using the SuperSeeker website and it's a shame that Hockey is engaging in misleading statements on this important topic. My media release on the changes is below.
MEDIA RELEASE

Andrew Leigh MP

Member for Fraser

HOCKEY GETS THE FACTS WRONG AGAIN – THIS TIME ON LOST SUPER

Joe Hockey’s statements over the past 24 hours show that either he hasn’t read any of the MYEFO documents explaining the Government’s changes to lost superannuation – or he is deliberately misrepresenting the facts.

Yesterday he made numerous statements trying to scare Australians into thinking that their superannuation will be transferred to the ATO if they don’t make a contribution for 12 months.

These assertions by Mr Hockey are completely wrong as super accounts will only be transferred to the ATO if they have been inactive for a period of five years, and only if the balance is under $2,000.

Mr Hockey should retract these incorrect comments and apologise for misleading Australian superannuants.

My Hockey made his false claims repeatedly yesterday:

“After 12 months of a dormant account, your superannuation will be transferred to the Australian Taxation Office. This year alone it’s worth $555 million – this year alone, in six months. So, don’t go overseas for 12 months to work. Journalists get postings overseas, Wayne Swan’s going to take your super which I’m expecting would be very generous.”

(Joint press conference with Tony Abbott, 22 October 2012)

“They’re changing the treatment of superannuation that isn’t accessed for 12 months to deliver $555 million this current financial year. So if you go overseas for 12 months working or something, Wayne Swan’s got his hand in your pocket.”

(Sky interview with Kieran Gilbert, 22 October 2012)

“If you don’t access your superannuation for a year, the Government will take it and put it in the Australian Taxation Office and that alone is delivering $555 million this year.”

(Lateline interview with Emma Alberici, 22 October 2012)

One would have hoped he would have stopped peddling these falsehoods by this morning, but instead he was at it again, saying:

“If your kids go overseas for 12 months or you’re unemployed for 12 months and you don’t access your superannuation account, then it’s going to go to the tax office. And if you go to claim it back a year later, the question will be whether your superannuation fund will take the account back and what fees and charges they’re going to charge.”

(2GB interview with Alan Jones, 23 October 2012)

These comments misrepresent one of the measures that the Government announced yesterday, which only applies to the tiny proportion of super accounts where the fund does not know who the owner of the account is.

The media release announcing the changes to lost superannuation, and the measure description in the MYEFO document, both clearly stated:

“The period of inactivity before an account of an unidentifiable member is required to be transferred to the ATO will be reduced from five years to 12 months.” (emphasis added)

Currently super funds can hold these accounts for five years after the last contribution was made, before they are required to transfer them to the ATO. Reducing the period of time that a super fund can hold the account of an unidentifiable member will encourage super funds to make further inquiries to discover who the owner of the account is, during the period when contributions are being made.

The Government also announced yesterday that it will ensure more small lost accounts are properly protected from being eroded by fees and charges, by increasing the account balance threshold below which inactive accounts, and accounts of uncontactable members, are required to be transferred to the ATO from $200 to $2,000. This is separate to the measure in relation to accounts with unidentifiable members.

Individuals can reclaim superannuation accounts transferred to the ATO at any time, however no form of interest is currently paid when they are reclaimed. In addition to the above reforms, the Government announced yesterday that it will ensure lost superannuation accounts reclaimed from the ATO retain their value in real terms, by paying interest at a rate equivalent to CPI inflation from 1 July 2013.
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Opening of one-stop-shop in Braddon

Today, Minister for Human Services Kim Carr and I opened the one-stop-shop for Medicare and Centrelink in Braddon. The co-location of these facilities means that the Braddon office is now able to offer additional services, such as Case Coordination which brings services together for vulnerable people.   It helps link people with services such as housing, health, crisis support, education and training, and family and financial support. The launch event also gave me a terrific chance to talk to some of the local staff about their work.

The media release is below. It has a great story in it about how Case Coordination helped out a local man to get assistance with housing and education.
MEDIA RELEASE

[caption id="attachment_3426" align="alignright" width="300" caption="With Sue Sheridan from FirstPoint and Minister for Human Services Kim Carr"][/caption]

SENATOR KIM CARR

Minister for Human Services

DR ANDREW LEIGH

Member for Fraser


Monday, 22 October 2012

NEW GOVERNMENT SERVICE HUB IN BRADDON



A new Government service hub in Braddon will offer Canberrans a wider range of services in one location, including a trial initiative that provides tailored assistance to help people get back on their feet.

Minister for Human Services Senator Kim Carr and Member for Fraser Dr Andrew Leigh officially opened the one-stop shop today and announced the start of a new program to help the most marginalised in the ACT.

Senator Kim Carr said the Braddon hub was an example of a new approach to service delivery.

“We are centralising government services both for convenience and in order to provide comprehensive assistance for complex cases. The government can do more than just handing out payments,” Senator Kim Carr said.

The trial Case Coordination initiative provides tailor-made assistance.  It aims to match vulnerable people with a range of services that meets their needs.   It then helps link people with services such as housing, health, crisis support, education and training, and family and financial support.

“Canberra may be one of the most affluent cities in Australia, but it has its share of people doing it tough, whether through joblessness, homelessness or poor health,” Senator Kim Carr said.

“My Department serves all Canberrans – well-off or not – and I am pleased that everyone, particularly residents in the Inner North, will benefit from having Centrelink and Medicare, as well as Child Support self-service facilities, all under one roof.”

Senator Kim Carr acknowledged that the transition to a new location was not always easy, but said that, together with the ability to make claims online or at the doctor’s surgery, the changes brought significant benefits to the community as a whole.

“This new one-stop shop is one of the biggest of the Department’s service centres in the region. It serves 400 people a day and its staff play a big role supporting the local community,” he said.

Dr Leigh welcomed the new centre and also praised staff for the success of the new initiative to help people turn their lives around.

“Since Case Coordination was launched here in mid-September, staff have worked one on one with vulnerable people to help them tailor a plan for a better future,” Dr Leigh said.

“One person had recently arrived in Australia, spoke little English and was sleeping in his car. He was registered with ACT homelessness support service FirstPoint but had difficulty understanding staff over the phone.

“The Braddon Case Coordination team were able to liaise with FirstPoint on his behalf, and stayed in touch until they could secure private rental accommodation for him.

“They were also able to explain the bond assistance available through ACT Housing, and refer him to Interpreter Services so language would not be a barrier to applying for support.

“The man is due to start studying English in November.

“I’d encourage anyone in the local community to visit the new service centre to find out more about the support on offer,” Dr Leigh said.

Medicare, Child Support self-service and Centrelink services, including Case Coordination, are available at Braddon’s new one-stop shop at 13 Lonsdale Street from 8.30am to 4.30pm Monday to Friday. Disabled and metered parking is available in Lonsdale St directly in front of the Braddon Service Centre.
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Cnr Gungahlin Pl and Efkarpidis Street, Gungahlin ACT 2912 | 02 6247 4396 | [email protected] | Authorised by A. Leigh MP, Australian Labor Party (ACT Branch), Canberra.