Page 3756 - Week 12 - Thursday, 21 October 1993
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licence fee accordingly. Madam Speaker, similarly, if a business which is located in New South Wales has employees who work wholly or mainly in the ACT, then the payroll tax liability remains in the ACT, so they are not going to get over that one either.
Only three of the nine wholesale petroleum distributors are located in New South Wales, and wholesalers are the only outlets capable of selling exempt diesel fuel. Compliance programs will be increased in this area in order to monitor any activity which may indicate illegal trading of diesel fuel. ACT wholesalers should be aware that, irrespective of the changes made to ACT legislation, they may still accept New South Wales diesel fuel permits, provided that the fuel is for consumption outside the ACT. Madam Speaker, therefore there is no basis for the claim that there will be revenue or employment loss.
Madam Speaker, one final point which I would like to cover concerns some claims that there are constitutional implications of removing the diesel fuel exemption scheme and that these implications are for cross-border trading. I would like to put that idea to bed. A senior legal adviser in the ACT Government Solicitor's Office has advised that section 92 of the Constitution is not an issue in this regard. The proposal to apply the franchise fee to off-road use of diesel fuel would not be seen as any different in its application from the licence fee applied to on-road use of diesel. The application of a State or territorial franchise fee therefore does not inhibit the free trade between States and Territories. Holders of New South Wales diesel fuel permits will still be able to purchase their exempt diesel in the ACT, provided that it is for consumption in New South Wales. However, Madam Speaker, if the fuel is for use within the ACT the supplier will be required to submit the appropriate licence fees to the Territory. Madam Speaker, I stress that it is the supplier who pays the licence fees. Given that there is a very much smaller number of suppliers than consumers, I think that members could have a little more confidence in our ability not to be totally overwhelmed by the compliance issues.
Madam Speaker, I commend this Bill to the Assembly. I recognise that members are concerned about an additional tax on some sectors of the community. I share that concern, but in the budgetary situation that the Territory faces at the moment I believe that it is the responsible course of action for the Government to adopt revenue measures which are fair and which would save us from having to borrow irresponsible amounts in order to meet our commitments to the community. Madam Speaker, I repeat that this measure is one that is integral to our concessions reform regime and, as an integral component of that regime, it is this kind of action which will allow us to extend, for instance, our electricity concessions regime to some 20,000 who are in need in this Territory. By imposing this impost on a relatively small number of members of the community we are able then to extend concessions to people who are in need. Of course, the business franchise exemption on diesel fuel will also remain applicable to those people in our community who really are in need. I commend this action to the Assembly, Madam Speaker.
MADAM SPEAKER: The question is: That this Bill be agreed to in principle. Those of that opinion say aye; to the contrary, no. The ayes have it.
Mr Moore: The ayes have it.
Debate interrupted.
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