Re: Disability Pension

Senator Bartlett: I want to ask a question about a joint review - and I have received a letter from the minister on this just recently - that was undertaken with your department and the Department of Veterans' Affairs about the treatment of disability pensions under the Social Security income testing arrangements, as against the Veterans' Affairs disability pension, and an anomaly that exists between the way the two departments treat those pensions.

The minister kindly informed me that the review was an internal one. In the absence of being able to see the report itself, I was wondering whether you could tell me what sorts of issues the report considered in relation to that discrepancy between the two payments. Was it simply just a cost factor that precluded the government from wanting to address that issue?

Senator Newman: The cost factor is obviously an issue. I understand it was a substantial amount of money, but I cannot recall the amount right now.

Senator Bartlett: It was $21 million.

Senator Newman: Thank you. It was a review by the officials of the DVA and my department. They were all people of have a great understanding of the issues involved. It is something that Mr Scott and I are really concerned to pursue, but at this stage we have not been able to. It is not a dead issue; that is all I would say.

Senator Bartlett: I was going to ask whether it would be fair for me to assume that the government decided that it was not going to be able to pursue its policy commitment in that regard, but you are saying that you are still seeing what can be done?

Senator Newman: Yes. I would not want anybody to start breathing heavily thinking that the government was rushing to write the cheque straight away, but I think it would be desirable to move to that as and when it can. But, as you jut spelt out the sum of money, it is not something you do lightly.

Senator Bartlett: I appreciate that you would need to get reports for your eyes only, but it seems to me that this sort of report would not contain anything overly sensitive. Obviously, it gives costings but those sorts of costings are useful for all of us to see.

Senator Newman: I think it was a report that was prepared essentially for the two ministers for presentation to cabinet.

Senator Bartlett: So it would outline other political considerations apart from just costs, et cetera?

Senator Newman: Yes.