Page 3478 - Week 11 - Thursday, 14 October 1993
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MR DEPUTY SPEAKER: Order, Mr Attorney! It being 45 minutes after the commencement of Assembly business, the debate is interrupted in accordance with standing order 77 as amended by temporary order.
Motion (by Mr Berry) agreed to:
That the time for the discussion of Assembly business be extended by 30 minutes.
MR CONNOLLY: These sorts of platitudes are seen through by members of the public. I said that Mr Humphries was particularly brave in moving this motion this morning, because he was a member of a Cabinet that just about doubled the rate of tax. As the Chief Minister pointed out, it was an 85 per cent increase that he presided over and he is now attacking us for this increase of a bit below 8 per cent; so it is a very brave and robust performance from Mr Humphries.
Mr Deputy Speaker, there was one pleasing aspect to this morning's debate, and that was Mr De Domenico's robust statement that the Liberal Opposition is firmly opposed to the Government's policy of getting independents into the Canberra market. I am delighted to hear that, because when we get proper market competition in this market as a result of our getting independents, and when we see the price of petrol coming down in Canberra to reflect a more realistic approach to marketing, I want to stand in front of those price signs and say, "The Liberal Party opposes this; they want you to pay the old prices".
The argument that the Liberal Party has put here, and it may be superficially attractive, is that the high price that the Canberra motorist pays for petrol is due to the ACT Government's taxes. Mr Deputy Speaker, that is simply nonsense. The taxation regime that applies in the ACT is now identical to the taxation regime that applies in New South Wales. Mr Deputy Speaker, what is the price of petrol? With an identical taxation regime you should see broadly comparable prices of petrol. Let us accept that there is a 1.8c freight margin to take petrol from Sydney to Canberra. Everybody says that that is too high; but the PSA has approved it, and that is another story. Let us accept that it is a realistic 1.8c margin.
What is the prevailing price of petrol? On Friday of last week the price of petrol in Canberra was 75.9c per litre, with our taxation regime. The average price in Sydney was 66c per litre, but it was selling on the weekend, according to reports I have, for as low as 62c. Mr Stevenson interjected earlier on, saying that it was 59.8c at some site in Sydney over the weekend. Madam Speaker, there is something wrong, is there not? There is something wrong here. How can you have high prices caused by taxation when you have an identical taxation regime and petrol is selling at between 15c and 16c per litre higher in the ACT than in Sydney? There is something seriously wrong.
The Canberra retailers are paying the maximum permitted wholesale price for their petrol, taking into account all the taxation, Federal and State. The maximum permitted wholesale price at the moment is about 72c per litre. That is what the PSA says is the maximum permitted wholesale price. How is it possible that Sydney motorists are paying 10c less than the maximum wholesale price? I will tell you how it is possible. It is because the price competition that is operating in the Sydney market means that the oil companies are supplying petrol to their Sydney retailers at a price massively lower than that at which they are supplying - - -
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