Page 2083 - Week 07 - Thursday, 17 June 1993
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... called on other ACT business groups to take a stand on the issue to halt the "fleecing" of dollars from ACT businesses and consumers by oil companies.
"It is scandalous that the ACT is being held to ransom. The disposable dollars available to hotels, restaurants and retail stores are being significantly reduced because of the actions by oil companies in charging unjustifiable prices for petrol ...
"Times are tough enough for most families without this sort of practice occurring by multi-national companies who should know better ...
They were supporting the Government's action. That is a press release from the Australian Hotels Association, who are not noted for supporting measures attacking small business. All of the rhetoric from the Liberals is extraordinary. Here is a release from the AHA supporting the Labor Government for intervening in this market. You are really isolated over there.
I interjected during Mr Humphries's remarks that the PSA and Professor Fels were wrong. Mr Humphries was highly agitated when I said that Professor Fels was wrong, but basically this report documents where Professor Fels was wrong. It documents that the difference between the price of petrol in Canberra and Sydney through extensive periods in 1991 and 1992, after the Fels reports, was in the order of 5c a litre, not 2c a litre. At page 21 there is a 4c a litre price difference shown, taking into account the 2c freight cost. So in fact it is a 6c a litre difference.
It documents at the back of the report that all the factors that Fels quoted for saying why prices should be higher here - higher building costs, higher operating costs and higher labour costs - were wrong. Labour costs in Canberra are lower than those prevailing in Sydney. The award rates are quoted in this report at pages 64 and following. The workers compensation premiums are in many cases comparable. The water, electricity and operating costs are much lower, and building costs are very comparable. So, again, those justifications for a higher price are simply wrong. The finding in 1991 that the real difference in price between Canberra retail and Sydney retail was 2c, which is about the freight cost, which means that everything is hunky-dory, is simply not the case now. That has been documented in this report.
The Government must intervene in this uncompetitive cartel-like market we have in Canberra. Everyone seems to accept that, but the Liberals cannot offer any positive way of acting. They are prepared, as always, to carp and criticise, but they cannot propose a single positive move that the Government can take. The Government has proposed a range of moves to intervene in this market, which will, in the Government's view, result in a lowering of petrol prices and a fair deal for Canberra consumers.
Question resolved in the affirmative.
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