Fuel supply and prices
Bev McARTHUR (Western Victoria) (12:19): (1287) My question is for the Treasurer. Despite yesterday’s Commonwealth excise cut, petrol and diesel prices remain far above pre-conflict levels. GST is levied on total fuel costs, so every cent of the price spike delivers additional revenue to Victoria. Conservative estimates accounting for business input tax credits and the excise reduction show Victoria receives a net GST windfall gain of $17 million per month from the fuel crisis. Treasurer, isn’t it a fact that your government is profiting from the higher bills Victorian families are struggling to pay?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:19): Mrs McArthur, if you had asked this question before yesterday, I would have understood, but you have literally raised the issue that has been addressed through cooperation between the federal government and the states. Yesterday’s announcement following national cabinet involved a 50 per cent reduction in the fuel excise. It dealt with some road user charges for heavy vehicles but also asked for the state governments to cooperate with the federal government in relation to the GST windfall and its role in the price spikes. Yes, in principle obtaining a benefit from this price rise is something that would be inappropriate. It is why the state government along with our state counterparts are working with the federal government to develop a model to ensure that the GST windfall can be taken into account in relation to further taking pressure off fuel prices.
Bev McARTHUR (Western Victoria) (12:21): The Commonwealth has put $2.5 billion on the table to help families at the petrol pump. Your government has limited it to free public transport at this point in time, a measure that does nothing for the millions of Victorians who have no choice but to drive. So what are you doing for the families who cannot catch a train to work, cannot catch a train to school drop-off and cannot catch a train to the farm gate?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:21): I thank Mrs McArthur for her question. Obviously these are important issues. These are conversations that, as I said, everybody in the community is having. We continue to work with the federal government on the contributions that we can make as a state. As you have identified, we have announced a month of free transport. I would not put to the chamber, Mrs McArthur, that this only benefits metropolitan Melbourne; it is free right across the state. Of course I acknowledge those that are car dependent. That is why there are other initiatives that have been looked at. You just literally started your contribution with acknowledging the fuel excise reduction, which is about ensuring that the hip pockets of those that require to use their cars can have some of that pressure taken off. We know that free PT has the ability to help everyone because it takes pressure off the pump. It means that it takes pressure off the demand issues that are being experienced, particularly in – (Time expired)