HANSARD EXTRACT
|
Adjournment: Fuel Prices |
| 6 September 2005 |
Mr HAYES
(Werriwa) (9.10 p.m.)—While
the member for Wentworth might think that everyone is thinking about
tax reform and tax cuts for high-income earners, nothing could be
further from the minds of the motorists in the south-west of Sydney
as they fill their cars up. Over the last week, petrol prices have
hit $1.30 a litre in most service stations in and about my
electorate. Today Wizard Home Loans reported that results from a
survey which it commissioned show that petrol prices have now
overtaken mortgage repayments as the No. 1 concern of Australian
home owners. With family budgets stretched to breaking point, rising
petrol prices are expected to add about $38 to the average monthly
petrol bill. It is not just families and individuals who are facing
increases; sustained increases will ultimately be passed on to
prices, to recover the increasing costs of transport and production
for goods and services. This will have a particular impact on the
price of food, given the significance of fuel costs for primary
production.
The government might find it convenient to
dismiss this as a short-term phenomenon, but at some point something
has to give. Businesses will only be able to absorb additional costs
for so long. With more of the household budget being taken up with
paying for fuel, less is going to be spent in local businesses.
Major retailers are already reporting that they are feeling the
pinch. For small business operators, who have had to absorb the
increases in fuel prices in a bid to stay competitive, a downturn in
retail spending will be a double whammy. It is a bleak scenario, but
one which has been allowed to happen on this government’s watch. The
government’s response to this situation was partly shown by the
response by the member for
Macarthur to a question in a local newspaper. When asked about what
suggestions he had for dealing with the rise in petrol prices, he
indicated that state governments could subsidise the cost of petrol.
This is the sort of arrogant, ill-considered and out of touch
response that has come to characterise this government.
The solution to the problem of rising petrol
prices is not an easy one; nevertheless steps have to be taken. It
has been reported that the world has about 40 years of oil supply
left. This is certainly not a long time, and much needs to happen if
we are to tap into other resources to meet our growing fuel and
energy demands. We cannot allow this government to continue to
ignore the problem as it has done for the last 10 years. It is easy
to dismiss the current price increases and blame them on the impact
of Hurricane Katrina or to say that supply and demand have been
affected by events in the
Middle East, but it is the primary responsibility of the
Commonwealth government to protect us in this particular situation.
While the world is running out of oil, we should not forget that
Australia has abundant natural gas reserves. If the time were taken
to develop them, we would have the potential to make ourselves
self-sufficient well into the future. It is about time this
government stepped up to the plate and helped industry develop these
resources.
Companies are trying to commercialise these gas fields in Northern
Australia but are finding it increasingly difficult because of the
government’s neglect of some significant and fundamental issues.
They face a chronic lack of infrastructure, because the government
has failed to make the necessary investments, and they are finding
it difficult to attract skilled staff because of the evident skills
shortages. Both are a product of the government’s neglect and the
lack of investment in the productivity and the capacity of the
Australian economy. Steps have to be taken now to reduce the impact
on Australian motorists, Australian families and the Australian
economy before our oil stocks are depleted— (Time expired)
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