Page 3606 - Week 12 - Thursday, 13 October 1994

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This is a government which, over the last few years, has traded on its reputation of doing something about high petrol prices but which, when it has the opportunity, itself raises petrol prices. We have to bear in mind that this is a party whose members, in opposition, claimed that they were very firmly opposed to tax increases on petrol but, in government, have embraced them and passed them on at every available opportunity.

Labor has, for over a year, been trying to play on the issue of petrol prices by attempting to force down retail prices through commercial advantages bestowed on particular favoured individual retailers - in this case, Burmah Fuels - and succeeding to a limited extent to do just that, if we are to believe the Federal Government's Industry Commission report, to the extent of between 1c and 2c a litre. I would have said that that was a fairly expensive achievement for the citizens of the ACT, particularly those who are involved with the retailing of petrol.

Madam Speaker, this increase from 7.04c a litre to 7.2c a litre is simply a revenue grab by the Follett Labor Government. The increase will cost ACT motorists just under $600,000 in a full year and will increase the ACT Government's take from petroleum products sales from about $26.1m to approximately $26.6m this financial year.

Mr Berry: How much for a tank of petrol?

MR HUMPHRIES: Mr Berry interjects to ask how much extra a tank of petrol will cost. I concede that it will cost only a few cents extra for a tank of petrol; but one needs to bear in mind that there are businesses in this town who spend a great deal of money on petrol every year. The money that they have to spend on their overheads is money that comes out of their capacity to employ additional Canberrans. If this Government were at all serious about wanting to do something about the high cost of employment in this town and to decrease costs to ensure that more Canberrans, particularly those one in three young people who cannot get jobs in this Territory, are employed, then it would do something about the high cost of those overheads. So, Mr Berry, the few cents a litre per tank of petrol add up very considerably. This increase will cost $600,000 in a full year.

Let us look at the history of this sort of policy of the Government. In 1990 the petroleum franchise fee was lifted by 3c a litre by the Alliance Government. It was done for a period of two years, specifically to fund the hospital redevelopment program.

Ms Follett: Hypocrisy!

MR HUMPHRIES: Ms Follett, who interjects, was quite vociferous at the time in her opposition to that move. In her speech on the budget in 1990, she said:

The decision to almost double the business franchise fee on petrol at this point in time clearly shows how out of touch this Government is. I would remind the members opposite that very few Canberrans are in the position of having their petrol paid for or of being driven around at public expense.


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