Mr MITCHELL - 2001-02-22
Fuel prices are on the minds of all Territorians as the high price of crude oil and the value of the Australian dollar continues to drive up petrol prices. With the cost of petrol substantially higher at the moment than when the Treasurer drew up the current budget this time last year, has the Treasurer considered the future of the 1.1 litre subsidy, a Territory-based fuel subsidy.
ANSWER
Mr Speaker, the member for Millner and members on this side of the House have an acute awareness of the impact of high fuel prices on Territorians. We live in places where we travel long distances and the impost is suffered here perhaps more than most parts of Australia. Certainly, those who live in the city don’t experience the difficulties as much as Territorians.
We are very much aware of how Territorians are suffering because of high fuel prices. When the budget was framed in March last year ...
Ms Martin: You decided to remove the 1.1 litre fuel subsidy, well done.
Mr REED: The Leader of the Opposition has no respect for Territorians. All they can hear is her verbalising interjections over this broadcast and can’t hear what is of concern to them and what the government is doing to ensure their wellbeing. I do ask her on behalf of Territorians to shut her trap. Territorians will understand that and they will say, ‘I hope she does it’.
Mr Ah Kit interjecting.
Mr REED: And the same applies to you. Shut your trap.
Mr SPEAKER: Order!
Mr REED: Territorians will understand what we are on about.
Ms MARTIN: Point of order, Mr Speaker! I don’t know whether you want to make a ruling on ‘shut your trap’, but I feel ...
Mr SPEAKER: No, I don’t intend to. There is no point of order.
Mr REED: And so on this matter of great importance to Territorians. When the budget was framed last year we had no idea, in determining that we would remove the 1.1 fuel subsidy and use that to provide IT in schools - a very important initiative and a high priority for this government - that fuel prices would increase on the international market in the way that they did later in the year, some months later.
Had we had that foresight, we would not have proceeded. But as has been demonstrated, no one around the world had that foresight. Prime Minister Blair in England has not been able to do anything about it. The US President has not been able to do anything about it. And I dare say if I had the hindsight - well, that foresight at that time in March last year - I would not be in this job now. I would be doing Alan Greenspan’s, because he didn’t foresee it either and he is one of the international financial gurus.
As a consequence of that, we have tracked and watched very carefully the impact of fuel prices on Territorians. We were of the ...
Dr Toyne: Fought for Territorians for sure.
Mr REED: Whispering Smith!
Mr Speaker, last year, as has the federal government, and earlier this year, we had hoped that there would be a downward trend in fuel prices. And so it is quite apparent that fuel prices at their high level are going to remain at their high level. It is forces beyond Australia’s shores, principally OPEC with their international crude pricing structure. Whilst oil has gone down to about $28 per barrel today, it has been for most of the year over $30 and it looks like it is going to continue to do that.
As a consequence of the impact that fuel prices are having on Territorians, and the responsive action of this government, and that we do not have an ideological pair of shoes on that we are just going to stand in regardless of the impost on Territorians, we will ensure that the 1.1 per litre fuel subsidy will be retained. That is a direct response to the needs of Territorians by this government. It is in recognition of the fact that international fuel prices, oil prices, are not going to reduce, and whilst it is not a particularly large amount, 1.1 in terms of a litre of fuel in Alice Springs will be $1.08, $1.09, I reckon at the moment, and high prices elsewhere around the Territory, this responsive government, which cares about the position of Territorians and stands ready to help, will retain the 1.1 subsidy.
ANSWER
Mr Speaker, the member for Millner and members on this side of the House have an acute awareness of the impact of high fuel prices on Territorians. We live in places where we travel long distances and the impost is suffered here perhaps more than most parts of Australia. Certainly, those who live in the city don’t experience the difficulties as much as Territorians.
We are very much aware of how Territorians are suffering because of high fuel prices. When the budget was framed in March last year ...
Ms Martin: You decided to remove the 1.1 litre fuel subsidy, well done.
Mr REED: The Leader of the Opposition has no respect for Territorians. All they can hear is her verbalising interjections over this broadcast and can’t hear what is of concern to them and what the government is doing to ensure their wellbeing. I do ask her on behalf of Territorians to shut her trap. Territorians will understand that and they will say, ‘I hope she does it’.
Mr Ah Kit interjecting.
Mr REED: And the same applies to you. Shut your trap.
Mr SPEAKER: Order!
Mr REED: Territorians will understand what we are on about.
Ms MARTIN: Point of order, Mr Speaker! I don’t know whether you want to make a ruling on ‘shut your trap’, but I feel ...
Mr SPEAKER: No, I don’t intend to. There is no point of order.
Mr REED: And so on this matter of great importance to Territorians. When the budget was framed last year we had no idea, in determining that we would remove the 1.1 fuel subsidy and use that to provide IT in schools - a very important initiative and a high priority for this government - that fuel prices would increase on the international market in the way that they did later in the year, some months later.
Had we had that foresight, we would not have proceeded. But as has been demonstrated, no one around the world had that foresight. Prime Minister Blair in England has not been able to do anything about it. The US President has not been able to do anything about it. And I dare say if I had the hindsight - well, that foresight at that time in March last year - I would not be in this job now. I would be doing Alan Greenspan’s, because he didn’t foresee it either and he is one of the international financial gurus.
As a consequence of that, we have tracked and watched very carefully the impact of fuel prices on Territorians. We were of the ...
Dr Toyne: Fought for Territorians for sure.
Mr REED: Whispering Smith!
Mr Speaker, last year, as has the federal government, and earlier this year, we had hoped that there would be a downward trend in fuel prices. And so it is quite apparent that fuel prices at their high level are going to remain at their high level. It is forces beyond Australia’s shores, principally OPEC with their international crude pricing structure. Whilst oil has gone down to about $28 per barrel today, it has been for most of the year over $30 and it looks like it is going to continue to do that.
As a consequence of the impact that fuel prices are having on Territorians, and the responsive action of this government, and that we do not have an ideological pair of shoes on that we are just going to stand in regardless of the impost on Territorians, we will ensure that the 1.1 per litre fuel subsidy will be retained. That is a direct response to the needs of Territorians by this government. It is in recognition of the fact that international fuel prices, oil prices, are not going to reduce, and whilst it is not a particularly large amount, 1.1 in terms of a litre of fuel in Alice Springs will be $1.08, $1.09, I reckon at the moment, and high prices elsewhere around the Territory, this responsive government, which cares about the position of Territorians and stands ready to help, will retain the 1.1 subsidy.
Last updated: 09 Aug 2016