Fri, 16th May 2008

Labor's double standards on fuel pricing

The Hon Greg Hunt MP
Shadow Minister for Climate Change, Environment and Urban Water

Changing fuel prices – little impact on consumption

The Rudd Government does not believe that there is a link between petrol pricing and emissions.

Otherwise they would not have embarked on their Fuel Watch adventure – which while destined to fail – was their attempt to bring down petrol prices.

In reality petrol has increased significantly in price in recent years without effecting demand because it is an essential good which is highly inelastic. Prices go up and people still have to drive with a change in consumption of only a fraction of one per cent for any five cent increment up or down.

So a five cent change in price - up or down - will not have any significant effect on demand for petrol.

The statistical evidence over the years is categorical on what is probably the most tested economic relationship in the world. Which is why the US states such as California, as well as Europe and now New Zealand have excluded petrol from their current or proposed emissions trading schemes.

Killing the solar panel industry – the real impact on jobs and emissions

By contrast, the solar panel industry has been in free fall since Labor’s Budget decision to force more Australians to pay an extra $8,000 for solar panels.

There has been an enormous outcry as many solar firms faced cancellations of all forward orders at the rate of between 30 and 70 per cent, causing the sector to begin shedding jobs.

Labor’s attack on the solar industry is not only hurting small businesses and jobs – but it will have the greatest immediate impact on greenhouse emissions of any Budget measure.