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Legislative Assembly for the ACT: 1996 Week 13 Hansard (5 December) . . Page.. 4511 ..

MS HORODNY (continuing):

in next year's budget or cutting the emergency services budget. In fact, it is quite possible. The money expected to be raised by the levy - which is $1.4m this year and $2.4m next year, I understand - is considerably more than is needed to run a fifth ambulance service, which the Government told us during the Estimates Committee process would cost $800,000 per year.

A further point I want to make is that there could have been a more equitable way of raising this money than a flat increase in registration charges. This flat increase takes no account of how much people drive their cars. From an environmental perspective and even a road safety perspective, it is not the ownership of cars that is the main problem but how they are used. It may have been more equitable, for example, to increase the petroleum franchise fee on petrol sales at a rate that would generate the same amount of revenue. This would equate to about a half-cent increase in the price of petrol. It would have been more equitable, because it would relate directly to how much driving people do. To put it on the petrol rather than the registration is a fairer thing to do. However, we think the benefits of improving road rescue services outweigh our criticism of the way the Government has handled this initiative, so we will be supporting the Bill.

MR DE DOMENICO (Minister for Urban Services) (5.34), in reply: We called it a road rescue fee. Ms Horodny does not like the word "fee" or the word "levy". She can call it what she will. The bottom line is that the fee, levy or tax will be $15. It will be collected at the time each motor vehicle is registered but remain a fee distinctly separate from registration fees imposed on ACT motorists. It is as simple as that. The fee will not apply to trailers. In light of what Mr Whitecross suggested and what the Estimates Committee recommended, the fee will not apply to trailers, including caravans, or to veteran, vintage and historic vehicles. Under the Vienna Convention diplomatic and privileged registered vehicles are exempt from paying the fee, I am advised.

Current vehicle registration statistics indicate that the road rescue fee has the potential to increase government revenue by $2.7m annually. ACT motorists who already have ambulance insurance cover will still require that insurance cover in the event of having an accident outside the ACT. The road rescue fee is intended to offset the costs of all road rescue services provided by the ACT, not only ambulance services as some people have suggested. I thank all those members who have contributed to this debate and thank the Assembly for seemingly supporting this move.

Question resolved in the affirmative.

Bill agreed to in principle.

Leave granted to dispense with the detail stage.

Bill agreed to.

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