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representatives vote 2014-06-25#5
Edited by
mackay staff
on
2014-07-25 19:06:06
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Title
Bills — Customs Tariff Amendment (Fuel Indexation) Bill 2014, Excise Tariff Amendment (Fuel Indexation) Bill 2014, Fuel Indexation (Road Funding) Bill 2014, Fuel Indexation (Road Funding) Special Account Bill 2014; Second Reading- Customs Tariff Amendment (Fuel Indexation) Bill 2014 and related bills - Second Reading - Decline to read a second time
Description
<p class="speaker">Peter Hendy</p><p>I rise to support the Customs Tariff Amendment (Fuel Indexation) Bill 2014 and associated bills, to oppose the amendment proposed by the opposition. These bills form part of a wider strategy to massively boost infrastructure spending in Australia. In particular, the focus of this package of bills is a massive increase in road infrastructure which will help boost the productivity of the Australian economy. That is vitally important because with a more productive economy it means we can, in a sustainable way, pay for all those other things that government provides like health services, education services and defence.</p><p>These bills amend the Excise Tariff Act and the Customs Tariff Act so that the rate of excise and excise equivalent customs duty applying to all fuels listed will be bi-annually indexed by reference to the consumer price index. The exception will be aviation fuel and the production of crude oil or condensate. The government has also provided that the increased revenue will be diverted to road expenditure. These measures will provide a stable and growing source of revenue to deliver the government's new road infrastructure projects.</p>- The majority voted against a [http://www.openaustralia.org/debate/?id=2014-06-25.31.1 motion] introduced by Labor MP [http://publicwhip-rails.openaustraliafoundation.org.au/mp.php?mpn=Joel_Fitzgibbon&mpc=Hunter&house=representatives Joel Fitzgibbon], which means that it was rejected. It would have amended the original motion "''That these bills be now read a [http://www.peo.gov.au/learning/fact-sheets/making-a-law.html second time]''" with the following:
- ''That all words after “That” be omitted with a view to substituting the following words:''
- ''“the House declines to give the bill a second reading as the government’s petrol tax is a broken promise that will increase the cost of living for Australian families."''
- ''Background to the bills''
- The [http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5286 Customs Tariff Amendment (Fuel Indexation) Bill 2014] and related bills were introduced to index the rate of excise and excise-equivalent customs duty applying to fuels, including gaseous fuels, in line with changes in the Consumer Price Index (CPI). The amount gained through this fuel indexation will be put into a special account created by the [http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5283 Fuel Indexation (Road Funding) Special Account Bill 2014], which can only be used to fund road infrastructure.[1]
- The two other related bills are:
- * the [http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5285 Excise Tariff Amendment (Fuel Indexation) Bill 2014]; and
- * the [http://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r5284 Fuel Indexation (Road Funding) Bill 2014].
- ''References''
- * [1] Read more about the bills in the [http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22legislation%2Fems%2Fr5286_ems_1b0f9393-cfbc-49eb-a8d9-e75945e82404%22 explanatory memorandum] of the Customs Tariff Amendment (Fuel Indexation) Bill 2014.
<p>Let us be clear: this is not so much the introduction of fuel indexation—that was done by the Hawke government in its 1983 budget. Instead, it is a reintroduction after a number of years of a hiatus. The rate of excise and excise equivalent customs duty on most fuels has not changed since the cessation of indexation in March 2001. As the Treasurer has detailed, petrol and diesel have both maintained an excise rate of 38.143c per litre since that time, with the real value of this rate having been eroded by inflation.</p><p>To give listeners a sense of this in relative terms, in the June quarter 2001, excise represented approximately 41.5 per cent of the price of unleaded petrol. Things are vastly different now. It is now worth around 25 per cent. The government has committed to the biggest increase in road expenditure in Australian history and reintroducing indexation is projected to moderately assist in funding these commitments by raising approximately $2.2 billion.</p><p>My electorate of it Eden-Monaro is receiving an early down payment on the increased roads expenditure. On 13 June the then Acting Prime Minister—that is, the Deputy Prime Minister and Minister for Infrastructure—visited Queanbeyan in my electorate. Together with the New South Wales Deputy Premier, Andrew Stoner, he announced a joint funding commitment of $50 million to build the Queanbeyan bypass. The Commonwealth and New South Wales governments have committed $25 million each to construct a 4.6 kilometre two-lane carriageway linking the end of Ellerton Drive to the new Edwin Land Parkway intersection at Old Cooma Road. A bridge will also be built over the Queanbeyan River.</p><p>The extension of Ellerton Drive will provide an alternative route for traffic wanting to bypass Queanbeyan's busy CBD and improve road safety. It is also a major economic development investment for the Queanbeyan district and has been the No. 1 infrastructure priority for the Queanbeyan City Council for a number of years. For those people worried that spending decreases in Canberra will adversely affect Queanbeyan and Eden-Monaro, this project will be a massive boost in investment and in jobs.</p> <p class="speaker">Anthony Albanese</p><p>Under standing order 66A Interventions, I ask if the member for Eden-Monaro would take an intervention to which he could then respond.</p> <p class="speaker">Rob Mitchell</p><p>Will the member take an intervention?</p> <p class="speaker">Peter Hendy</p><p>I am always interested to hear your questions.</p> <p class="speaker">Anthony Albanese</p><p>I thank the member for Eden-Monaro. I ask, because this is related to the fuel tax increase, whether the project in Queanbeyan that he referred to in his contribution or even the Majura Parkway Parkway that is already under way are dependent upon the carriage of this new tax for funding or whether if this new tax does not go ahead those projects will still be concluded, which would suggest that the funding is not dependent upon this new tax at all.</p> <p class="speaker">Peter Hendy</p><p>The point I think is really relevant is that the ALP absolutely opposed this Queanbeyan bypass in the last election.</p><p class="italic">Mr Albanese interjecting—</p><p>You did not support it at all.</p><p>Opposition members interjecting—</p><p>I was asked a question about the Queanbeyan bypass.</p> <p class="speaker">Rob Mitchell</p><p>The member for Eden-Monaro has the call. The member for Grayndler will listen in silence to the answer. He was afforded the silence of the chamber for his intervention.</p> <p class="speaker">Peter Hendy</p><p>Indeed, Mr Deputy Speaker. I was asked a question about the Queanbeyan bypass, which was opposed by the Labor Party. The member for Grayndler may have been the relevant minister at the time. He opposed a project that was the No. 1 priority of the Queanbeyan City Council. Instead, those opposite proposed a Dunns Creek Road extension road that was not actually on the list of priorities for the Queanbeyan City Council and was never asked for. It was actually promised for in the 2010 election and was never delivered through the course of the 2010, 2011, 2012, 2013 parliamentary term.</p> <p class="speaker">Ewen Jones</p><p>Who was that member?</p> <p class="speaker">Peter Hendy</p><p>The member then was a fellow named Mike Kelly.</p> <p class="speaker">Ewen Jones</p><p>What party was he in?</p> <p class="speaker">Peter Hendy</p><p>He was with the ALP. It is a road—that is, the Queanbeyan bypass—that will not only ease congestion in the CBD but will provide better access to the new housing estates in the area like the Googong development and maintain connection between east and west Queanbeyan during a one-in-100-years flood. This project has been promised for decades at the state level but was never delivered by Labor governments. Coalition governments at both the Commonwealth and state levels are now delivering it.</p><p>The government does not resile from the fact that these initiatives come at a cost. The estimated price impact of fuel indexation by the end of 2014-15 is an increase of about 0.8c per litre with an additional 0.1c per litre due to the GST, as the GST is applied to the excise inclusive price. The Treasury has calculated that 50 litres of fuel would cost around 45c extra or around $24 extra per annum if this usage was weekly, assuming the change is passed on in full and ignoring any other price changes. By the end of the forward estimates period in 2013, the increase is about 3.7c per litre with an additional 0.4c per litre due to the GST. Fifty litres of fuel would cost around $2.05 extra or around $107 extra per annum extract if this usage was weekly. For those businesses using fuel in off-road operations or operating a vehicle with a gross vehicle mass in excess of 4.5 tonnes, this measure will not increase their business cost. This is because these businesses are able to receive fuel tax credits to offset the fuel excise paid.</p><p>Since I have been interrupted by the member for Grayndler, I will cut to this really important point: I would like to remind people in my electorate that, on coming to office, the new coalition government faced a $47 billion budget deficit for the 2013-14 financial year and $123 billion of projected deficits to 2016-17. Today every man, woman and child in Australia, and therefore in my electorate, is footing a $1 billion interest bill every month on Labor debt. This budget begins the task of restoring budget integrity for the long term, making savings in current expenditure so we can invest in the infrastructure necessary to rebuild our national economy. The 2014 budget outlined a $50 billion investment across Australia to deliver vital transport infrastructure for the 21st century. The budget includes many large-scale commitments which will trigger more than $125 billion in infrastructure investment but, importantly, there is also a significant boost to road funding at the local level.</p><p>As part of this agenda we have committed $2.5 million for the continuation of the Roads to Recovery program to support the maintenance and upgrade of local roads. This includes an additional payment of $350 million to local councils during the 2015-16 financial year. To fix dangerous and accident-prone sections of local roads and streets, $565 million will be provided through the ongoing Black Spot program. This includes an extra $100 million in both the 2015-16 and 2016-17 financial years. Recently, on 4 June this year, the Assistant Minister for Infrastructure and Regional Development and I announced funding of $622,450 to fix dangerous black spots in Eden-Monaro. The Eurobodalla Shire Council will receive a total of $530,000, the Queanbeyan City Council will receive a total of $52,450 and the Bega Valley Shire Council will receive $40,000. The projects were recommended by a panel of independent road safety experts and will be delivered in the course of the coming financial year, 2014-15. A recent evaluation of the Black Spot program found that fatal and casualty crashes are reduced at treated sites by 30 per cent. That is a great result for the Black Spot program. This investment in black spot projects will deliver safer roads for Eden-Monaro through targeted upgrades proven to deliver results.</p><p>I also note the government's Bridges Renewal program, which was promised in the election campaign, will commence in 2014-15. Partnering with local councils and state governments, this program will invest $300 million in Commonwealth funding into the repair and replacement of local bridges. I have already raised this program with the mayors in my electorate and they are considering putting in bids.</p><p>To improve productivity and safety in the heavy vehicle industry, the government has also committed to continue the heavy vehicle safety and productivity program, with $200 million available over the next five years for projects such as road enhancement, rest areas and technology trials. In addition there has been a Community Development Grants program since the election which has confirmed $314 million in investments in over 300 projects, which are designed to deliver the coalition's election commitments, and some residue projects from the previous government. Among those 300 projects was the $10 million for the port of Eden redevelopment in my electorate, which is one of the most important local investments in infrastructure we have seen in years. It was promised by the previous government over the course of a whole six years but, amazingly, it was not delivered. We are now proceeding with it. The money is in the budget. We are getting on with the job, in consultation and partnership with the New South Wales coalition government.</p><p>Talking about infrastructure, I am also happy to confirm the coalition government will continue with its $160 million commitment to the Bega community to build the new South East Regional Hospital. This is a major project, in collaboration with the New South Wales government, which we hope will be completed in 2016. Only in February this year—that is, 2014—was it announced that the tender for the main works were awarded to Brookfield Multiplex. Do not let people think this is a Labor government project just because they announced it before the election: it is taking form and substance under a coalition government. We are actually getting the work done on this vital need for the Bega Valley district.</p><p>Further, the government's new $1 billion National Stronger Regions Fund aims to promote economic development through investment in infrastructure projects at the local level. The program will help communities with lower than average socioeconomic circumstances and higher than average unemployment by improving local facilities, creating jobs and building needed infrastructure. Grants from the program will commence next year. Again, I have been talking to the mayors in my district to ensure we work together, collaboratively, to get bids in for this very useful regional and rural program.</p><p>By partnering with state governments and leveraging private sector investment through innovative financing models, Australia is set to receive $126 billion in investment in productivity-enhancing infrastructure. Major projects are occurring across the country. I have already talked about major projects in my electorate like the port of Eden redevelopment, the Bega Valley hospital project, the Queanbeyan bypass and other road spending in the Eurobodalla and Bega Valley shires. In conclusion, these bills are a vital part of the government's infrastructure strategy and I commend them to the House.</p> <p class="speaker">Warren Snowdon</p><p>The shame of this debate is that it has been truncated and effectively gagged, which means that members opposite who should be speaking will not be. I am not talking about members who come from Eden-Monaro or even the mighty Herbert. I am talking about the members for O'Connor, Forrest, Pearce, Capricornia, Grey and Leichhardt—those people who come from large regional electorates.</p> <p class="speaker">Eric Hutchinson</p><p>Lyons.</p> <p class='motion-notice motion-notice-truncated'>Long debate text truncated.</p>
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