Cheaper fuel to end for Queenslanders – while Rudd stays silent
29th June, 2009
The Federal Government should intervene to stop the Queensland Government’s decision to end its 8.35 cents a litre petrol subsidy this week, Shadow Minister for Trade, Transport and Regional Development, Warren Truss said today.“Tomorrow is the last day that Queenslanders will benefit from this petrol subsidy, and the Bligh Government’s decision is likely to cost the average motorist more than $150 a year,” Mr Truss said.
The fuel tax is collected by the Commonwealth on behalf of the States. When the previous Coalition Government agreed to collect the fuel tax it was on condition that Queensland returned the tax to motorists.
Following the High Court ruling in 1997 that states did not have the power to levy an excise on fuel, the Howard Government negotiated an arrangement where the Commonwealth collected an ongoing 8.35 cents a litre at the pump and pays the money to the States. Queensland had never had a fuel tax and this condition ensured that motorists were not out of pocket compared to those in other states.
“Queensland has no moral right to continue to receive this money from the Commonwealth. Premier Bligh has welched on the deal done by the Borbidge and Howard Governments and Prime Minister Rudd has done nothing.
“Queensland is a big state and that deal has benefited Queenslanders ever since. Reduced fuel prices also had a flow on effect to road transport and food costs.
“That will end on July 1. The Prime Minister has let down the people of his own home state by staying silent and allowing the long standing deal between the Commonwealth and the state to be shredded.
“The decision breaks a Bligh election promise and is only being made because Labor has lost control of the economy and needs the $600 million a year to stave off bankruptcy.”
“The people of Queensland will remember Anna Bligh’s decision for a very long time, and Kevin Rudd will have a lot of explaining come the next election,” Mr Truss said.
