Thu, 15th May 2008
Coalition moves to cut fuel prices by 5 cents a litre
The Hon Warren Truss MP
Leader of The Nationals
Shadow Minister for Infrastructure, Transport and Local Government
In moving tonight to cut petrol and diesel excise by five cents a litre, the Coalition has acted decisively to reduce cost of living pressures on every Australian.
The Leader of The Nationals, Warren Truss, said the Coalition move would save motorists about $2 billion a year on their fuel bills.
In contrast, Labor’s approach since the election has been all about increasing fuel prices. Labor tried unsuccessfully to ramp up diesel fuel prices by 1.4 cents a litre for the transport industry and then introduced the failed Fuelwatch scheme.
Mr Truss said he would work closely with the Opposition Leader, Brendan Nelson, to deliver this and other measures announced in the Opposition’s Budget Reply speech.
“Kevin Rudd and his inexperienced and quite frankly heartless team of ministers have produced the highest taxing, highest spending, most directionless Budget in Australian history,” Mr Truss said.
“Thanks to the Coalition’s strong economic management, the biggest Budget surplus in history has also been created. But instead of wise and targeted spending, Labor seems paralysed on how to use the available funds to relieve pressure on household budgets.
“Well, if Labor won’t act, the Coalition will.
“That is why we this week stopped the inflation feeding rise in diesel fuel excise for truckies and bus operators that Labor proposed. The Prime Minister today said in Parliament that this increase was ‘responsible’ and Labor will pursue this tax rise as part of its general tax binge.
“Petrol prices have rocketed recently and the Coalition will move to reduce every motorist’s petrol bill, cut road transport costs and reduce inflation.
“Under Labor between 1983 and 1996, fuel excise exploded by 500 percent from seven cents a litre to 34 cents a litre. Twice a year the excise rate rose in line with inflation, although Labor also increased excise further to fund its out of control debt.
“In 2001, the Coalition decided enough was enough, and cut the then existing rate by 1.5 cents per litre to 38.14 cents. Critically, we stopped indexation and froze the excise rate.
“Intriguingly, Labor revealed nothing about the costs of its plans for emission trading in Tuesday’s Budget papers. Petrol companies and economists believe a trading scheme could add anywhere from 10 to 17 cents per litre to the cost of petrol.
“The choice for Australians is clear: the Coalition offers lower fuel prices while Labor is acting to drive them up.”
Mr Truss said rural and regional Australians would also benefit from two other Coalition measures announced tonight. The Coalition will reinstate the Investing in Our Schools program that helps schools build infrastructure. Every school inn Australia qualifies for this program which Labor axed in this week’s Budget. The program bypasses state and union bureaucracy – which is why Rudd Labor hates it.
Small business owners will also benefit from a proposal to give them an exemption from paying Capital Gains Tax when they sell their businesses on retirement after owning them for five years, rather than the present 15 years.