Roger Price (Chifley, Australian Labor Party) Share this | Hansard source

I am pleased to speak on this extraordinary day when we are debating the Petroleum Retail Legislation Repeal Bill 2006 and when we have had a ministerial statement about fuel. I just want to pick up on comments made by the honourable member for Scullin, because he has pointed out that, clearly, the Prime Minister believes that his ministerial statement has gone some way to relieving the angst amongst members of the public about high petrol prices. I am staggered to find today that only Labor members and, of course, Independents are rising in this debate to talk about the issue that I think is hurting Australians so much, certainly those in my own electorate.

It is very interesting that people are suffering not only from high petrol prices but also from a rise in interest rates. In fact, the proportion of household income going to service interest payments on home mortgages has reached a record high of 28.2 per cent. That contrasts with the situation in 1989, when they were 25.8 per cent under Mr Keating. A greater proportion of household income is now going to service home mortgages. At a time when the Prime Minister promised the people of Australia that he would keep interest rates low, lo and behold, what has happened? We have had two interest rate rises since the budget, and many commentators are speculating that the market has already factored in a third interest rate rise. This is hurting the hip pockets of Australians, particularly those who are paying off a mortgage and those who have recently moved into houses, particularly young families.

In addition to interest rate rises and their effect on the hip-pocket nerve, we have seen record amounts of household debt. Again, in 1989, household debt as a proportion of income was 60 per cent. In 2006, it not only has doubled but stands at 150 per cent. No wonder people are very sensitive about increases in the price of petrol. I want to make the point that, when the Prime Minister was asked in question time about interest rates—that is, the interest rates that mums and dads are paying on their home—and that in Australia they are higher than in any other comparable country apart from New Zealand, he did not want to answer it. However, in his ministerial statement, he was at pains to point out that petrol prices in Australia are the fourth lowest in the OECD. The member for Kennedy would never have tried to explain to his constituents that petrol prices, notwithstanding their high price today, are by world standards very low. It means not one jot to people when they pull up in the family car and spend $60, $70 or $80 to fill up the petrol tank.

The Prime Minister also said in his ministerial statement that there are many factors beyond the control of the government. I would like to quote from a 1986 matter of public importance debate on fuel prices, in which a member states:

When he—

that is, the Prime Minister of the day—

talks about complexity, difficulty and problems and asks the Australian public to understand the difficulty of the Government, I say to him and to the Treasurer on behalf the Opposition and the Australian public that if there is any complexity, difficulty, pain or problem, it is all the Government’s own making.

I have given the person away by mentioning the date, 1986. The honourable member for Bennelong said that. It is a quote from him. I suspect that we ought to keep him at his word. Again, on 11 February 1986, he said:

When one looks across the whole gamut of policies being followed by this Government, one finds again the again actions taken by the Government that are damaging the living standards of average Australians and their families. We find it with interest rates, taxation and petrol prices ...

I agree with him on that about this government—his own government.

Today the government announced an important initiative on LPG. They are going to offer two subsidies—$1,000 towards a new car fitted with LPG and $2,000 towards the cost of converting a vehicle to LPG. It sounds like a very sensible measure, and I am happy to support it. It will be good for the community. But the Prime Minister’s statement included no estimate of the number of people who will be able to take advantage of these subsidies. Why is he running for cover? Why won’t he say to the Australian people that, over four years, he expects so many people will be able to take advantage of them. There is a figure of 230,000 people taking advantage of this new initiative on LPG—one, I might say, that was advocated in a blueprint by Mr Beazley, the honourable member for Brand and Leader of the Opposition.

I am pleased for those people who can take advantage of this. I say to the honourable member for New England and the honourable member for Kennedy that, when you work the figures out, it means that in 12 months 383 of the constituents in your electorate will take advantage of it. But, as always, there is a catch. They need to have money in the hand in the first place to pay for the conversion, to get the rebate.

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