Northern Territory Council of Social Service

 Media Release – 22 April 2009

Insulate health card holders from government’s electric shock

Four influential Northern Territory community groups today issued a joint statement calling on the Henderson Government to ensure that vulnerable Territorians were not plunged into poverty by excessive increases in the cost of power and water.  

The groups have called for concessions to be extended to all holders of health-care cards, so that utility price increases do not push low income earners further into poverty.

The Northern Territory Council of Social Service (NTCOSS) joined with housing peak NT Shelter, seniors lobby group the Council on the Ageing, and carers organisation Carers NT, to request that government reconsider the proposed increases.

The Treasurer has indicated that power costs will increase by 18% on July 1 this year, and by a further 5% the following year. Water costs will also increase by 20% in each of the next three years.

“Many working families are struggling to make ends meet as the global financial crisis hits” said NTCOSS Executive Director, Wendy Morton today. “These people simply don’t have the capacity to absorb price increases of this magnitude.” 

NTCOSS applauds an indication from the Treasurer that the increased costs will not be passed on to pensioners and carers. However, the greatest impact will be felt by people on other benefits such as Newstart Allowance and Youth Allowance, who are not entitled to any concessions.

“People cannot go without electricity. Clothes still have to be washed and food must still be stored and cooked” said Ms Morton. “Extending concessions to all holders of health-care cards will provide a measure of protection for Territorians who are most at risk.”

These price hikes will also place further pressure on the exorbitant cost of rental accommodation in Darwin. “Our rents are already the most expensive in Australia and this will only make things harder for low-income households struggling to meet our high cost of living,” said NT Shelter Executive Director, Toni Vine-Bromley today.   

Government has a responsibility to assist disadvantaged Territorians on low incomes especially as they prepare to weather the worst of the global economic storm” concluded Ms Morton. “This is not the time for huge increases in the cost of power and water.”

For comment: Wendy Morton, Executive Director, NTCOSS - 0418 482 660

                       : Toni Vine Bromley, Executive Officer, NT Shelter – 0428 802 240

Media inquiries: Graham Ring - 0404 362 290