Page 232 - Week 01 - Thursday, 14 February 2019
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At that time the then federal Minister for Small Business, Bruce Billson—remember him—issued a new direction under the Competition and Consumer Act which gave the ACCC a range of new powers. And it was just the week before Christmas in 2014 that I wrote to the ACCC Chairman, Rod Sims, expressing our desire that the Canberra market be one to be investigated.
This has been a long-term issue. It is something that many, many people have been concerned about for some time. There are, as members have indicated, a range of complex factors. The select committee will have a task in front of it to work through those issues. But I would encourage committee members across the political divide to ask the tough questions of the retailers. Do not be afraid to pursue them.
I think the example that was set by the Senate and a Senate committee in pursuing the banks that then led, finally, after 26 votes against, to the establishing of a royal commission by the federal Liberal government is a good example. The proof there was the power of a parliamentary committee to call witnesses and to demand answers. And that led to the royal commission and is hopefully going to lead to significant change in the Australian banking industry.
I do not think there is going to be a royal commission into fuel prices in the ACT, but this select committee can shine a light on these issues and demand answers from the retailers. I encourage whoever nominates for this committee to be robust in their questioning of the retailers.
I should respond to a couple of other observations that the Leader of the Opposition made. He should be aware that, because of the nature of the territory’s planning and zoning system, a retail site for the selling of petrol is in fact one of the lowest value uses of a piece of land. And under our system I think he will find that rates are, in fact, lower for that land than for other commercial purposes.
Given that most, but not all, of the petrol retailers in the ACT are not part of large corporate chains—they are either franchises or otherwise—they do not fall into our payroll tax net. But they would in New South Wales, and they would here if we had their payroll tax system. It would seem that the retailers here have lower statutory charges from the territory government, as opposed to what would be paid across the border in New South Wales. So that is not a factor in higher retail prices in the territory.
I should also take the opportunity to correct some misinformation that has been circulating in the public that the ACT charges any sort of fuel tax or excise tax. States and territories are constitutionally barred from charging any excise taxes. All fuel taxes in this nation are levied by the federal government. There is no differential between states and territories in terms of fuel taxes charged. They are collected by the Australian government. That furphy that has been circulating around the community, that somehow it is ACT government taxes and charges that are contributing to higher fuel prices, is simply not the case. I think it is important that that is put on the public record today.
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