Surplus will help the unemployed: Emerson

20 May 2012, 3:58 pm   -   Source: AAP

Frontbencher Craig Emerson won't back a call by backbenchers for the dole to be increased, arguing the unemployed will benefit from a return to surplus.

Senior government minister Craig Emerson has refused to back a call by backbenchers for the dole to be increased, instead arguing the unemployed will benefit from Labor returning the budget to surplus.

It's been reported that a quarter of Labor backbenchers believe the current Newstart allowance of $245 a week is too little to live on.

NSW senator and left faction leader Doug Cameron told Fairfax on Sunday that Labor should remember that people who fall on hard times deserve to live "with some dignity and respect".

But, asked whether he thought the dole should be raised, Dr Emerson insisted the focus had to be on returning the budget to surplus.

That would then create room for the Reserve Bank to reduce interest rates.

"If they come down further as a result of the return to surplus that's a good thing," Dr Emerson told reporters in Canberra.

"It's a good thing for all Australians who want lower interest rates and that includes people who are looking for jobs."

In this month's budget the Gillard government offered those on Newstart a supplementary payment equivalent to $4 a week.

Labor also announced it would force some 100,000 single mothers off parenting payments and onto the dole when their youngest child turned eight.

Dr Emerson on Sunday argued Labor was still supporting single parents through other increased payments. And he again stressed the need to get back in black.

"The point is that we need to bring the budget to surplus.

"A surplus is the sign of a strong economy and it's an important buffer for single mums and for everyone else in times of global uncertainty."

The Australian Greens, who want the government to raise Newstart by $50 a week, welcomed the push by Labor backbenchers for a better deal for those out of work.

"I am glad that more MPs are realising the absolute inadequacy of Newstart," families and community spokeswoman Rachel Siewert said in a statement.

"Under the current arrangements people are living $133 per week below the poverty line and it subsequently becomes harder and harder to find employment."

Finance Minister Penny Wong has previously said it's not "fiscally appropriate" to lift the Newstart rate at the moment.

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