Cut disabled pensions to pay for floods: Business Council of Australia

The Business Council says cuts to disability services and foreign aid should be considered as alternatives to the flood levy.

The Federal Government says the $1.8 billion tax is needed to help pay for flood and cyclone reconstruction in Queensland and Victoria.
But in its pre-budget submission, the Business Council, which represents Australia's top 100 companies, says the government should instead press ahead with returning the budget to surplus through short-term spending discipline.
Council president Graham Bradley says all current spending should be reviewed and disability pensions may not be the best use of government money.
"It is one of the large budget items," he told ABC Radio's AM.  ... read the full ABC report here.

And an immediate rejoinder from Senior Australian of the Year and disability advocate, Prof Ron McCallum:

Pension cuts to pay for floods 'not an option'
Senior Australian of the Year and leading disability advocate Ron McCallum has vehemently rejected the Business Council of Australia's calls for disability pensions to be cut to help meet the nation's floods recovery bill.
...  Professor McCallum, the first totally blind person appointed to a full professorship at an Australian university, says cutting pensions to pay for flood recovery is not an option.

"Persons with disabilities have the highest unemployment rate of any group in Australia, save for Indigenous Australians," he said.
"What government should be doing is establishing programs to assist we persons with disabilities in obtaining employment.
"The disability pension should not be arbitrarily cut simply because of the Queensland floods."
Professor McCallum says while he is open to any review of the guidelines for placing people on the disability pension, it is vital those who cannot work are properly supported.
"There is always a case for examining whether persons are appropriately placed upon the disability pension," he said.
"It may be that there may be a case for examining why there are so many people on the disabilities [pension]. There may be some people who should not be there.
"But for all of we Australians who have disabilities, it is important that where we are unable to obtain employment we are given sufficient funds on which to live and support ourselves and our families."
South Australian Dignity for Disability MP Kelly Vincent says the Business Council is wrong to criticise the disability pension.
Ms Vincent says people get a disability pension because of their inability to work.
"People are better off psychologically, physically and mentally being in the workforce, but if that is not an option for you and you then lose the only financial sort of income you have, how is that going to be good for your psychology?" she said.

And a clarification from the Business Council of Australia, received this afternoon:

Thank you for taking the time to contact the Business Council of Australia office today. We have received a number of calls and emails from members of the public understandably concerned by media reports suggesting that the BCA had called for a cut in disability pensions to fund the post-flood reconstruction.

The BCA has issued a clarifying statement to media and to a number of organisations representing people with disabilities.

The statement recognises that the Disability Support Pension forms a vital function in Australia’s welfare system for those who do not have, or have limited capacity, to participate in the paid workforce.
The BCA has not recommended that disability support pensions be cut or reduced to fund the flood reconstruction effort or as an alternative to the flood levy.

The approach to the reconstruction effort recommended in the BCA’s 2011-12 budget submission is that the federal government should focus on reducing or re-sequencing spending on programs that give least value for money.

Longer term, the BCA submission recommends that steps be taken to place the nation’s finances on a more secure footing for the future, including policies that provide opportunities for people who want to work and are capable of working to enter the paid workforce.

Please let me reassure you, and encourage you to reassure others, that the BCA has not suggested that the disability pension should be either cut or reduced. Our position has always been that people with disabilities who can and want to work should be supported in this endeavour, including through incentive structures.

Kind regards
Maria Tarrant
Acting Chief Executive
Business Council of Australia