Fed: Labor to move for Senate inquiry on petrol prices

AAP General News (Australia)
08-27-2000
Fed: Labor to move for Senate inquiry on petrol prices

By Krista Hughes

CANBERRA, Aug 27 AAP - Labor will move tomorrow to establish a Senate inquiry into
petrol pricing following massive hikes in the cost of fuel at the pump.

The proposed inquiry will look at whether federal taxes have played a part in petrol
prices spiralling above $1 per litre in many regions.

It will also canvas the idea of funnelling tax revenue into transport initiatives.

Opposition treasury spokesman Simon Crean said the inquiry was needed to get to the
truth on petrol tax.

"Australian motorists have a right to know how much extra John Howard is skimming from
their pockets every time they fill up," Mr Crean said.

The Australian Automobile Association estimates the government will reap a windfall
of more than $1 billion in extra revenue from rising petrol prices this year.

An extra $470 million each would come from the Bass Strait affiliates and tax revenue
from oil companies, $140 million from the GST and $50 million from fuel excise, which
is indexed to inflation.

"The Senate inquiry will look at the options available for returning this windfall
to Australian motorists," Mr Crean said.

Opposition transport spokesman Martin Ferguson said Labor hoped to hold the prime minister
to his election promise that petrol would not rise because of the GST.

"The Senate inquiry is about accountability and holding the prime minister to his word,"

Mr Ferguson told the Ten Network.

But the proposal seems doomed after the Australian Democrats, the party which holds
the balance of power in the Senate, condemned it as a waste of time.

Democrats Leader Meg Lees said the ALP had no credibility on petrol pricing as it had
introduced the automatic indexation of fuel excise.

"Mr Crean's terms of reference are nothing more than an exercise in political grandstanding
and witch-hunting, and they vindicate the Democrats' reluctance to support yet another
inquiry into petrol," Senator Lees said.

Labor premiers, including Queensland's Peter Beattie, have also called for a Senate inquiry.

Mr Beattie has threatened to hold his own investigation if the Senate proves unwilling.

Prime Minister John Howard and Treasurer Peter Costello have blamed world oil prices
for the jump in the cost of petrol.

AAP daw/rs/de

KEYWORD: PETROL NIGHTLEAD

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