Page 3562 - Week 12 - Tuesday, 19 October 1993
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MR WOOD: Madam Speaker, that was there long before I came into this job, so I am not sure what documentation went on at that time. I will check the detail of the Territory Plan and the National Capital Plan to see just whose property it is on. I recall that with the crosses outside the Indonesian Embassy there was some question as to who had the right to take them away or not to take them away. I think that created some debate. I would not assume automatically that it is in my province to make that decision. I suspect that in the end it is, but first I should make sure.
Diesel Fuel Franchise Fee
MR MOORE: Madam Speaker, my question is directed to the Chief Minister in her capacity as Treasurer. In your presentation speech on the Business Franchise (Tobacco and Petroleum Products) (Amendment) Bill 1993, Chief Minister, you said:
The Commissioner for ACT Revenue advises that there is widespread abuse of the scheme, with exempt fuel being diverted to on-road use in vehicles serving the construction and transport industries, as well as personal use in four-wheel drive and other diesel-powered vehicles.
How was such a conclusion reached? In the light of evidence presented by, amongst others, the Canberra Business Council, and the experience of the X-rated video franchise scheme not being able to reach its projected revenue, how do you expect to raise revenue when it will be possible for the targeted group simply to buy the fuel across the border, thereby encouraging firms to relocate out of the ACT?
MS FOLLETT: Madam Speaker, I thank Mr Moore for the question. I reiterate the figures that we have on the use of the diesel fuel exemption certificate and advise members that there are about 2,600 people in the Territory, all up, who hold those certificates. Ninety-one per cent of those certificates relate to domestic home heating, 2 per cent relate to primary production and 7 per cent relate to other off-road uses, for example, construction. I presume that Mr Moore is talking about that last category. The Commissioner for Revenue has advised me that he is aware of misuse of that concession. I do not have details from him. I can certainly seek those from him if the member requires the sort of evidence that he has collected. I would like to remind members that the original intention of this concession was to assist primary producers. As I have said, currently there is some 2 per cent of the exemptions going to the assistance of primary producers.
I would also remind members that not just this Government but all governments have increasing demands on concession regimes. They are increasing all the time, across the board. It is more essential than it ever has been, in my view, that concessions are targeted to people who need them. Madam Speaker, it seems to me to be quite inequitable that people are enjoying a concession on this particular type of fuel when that concession is not available to users of other types of fuel, for instance, gas or electricity. Members ought to be aware that there is, in fact, a levy on the use of gas, and members ought to be aware that the electricity supplier, ACTEW, pays a very substantial dividend to the Territory - some $25m this year. That constitutes, in another form, a tax on that particular energy source.
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