House debates

Monday, 18 February 2008

Questions without Notice

Fuel Prices

2:42 pm

Photo of Jim TurnourJim Turnour (Leichhardt, Australian Labor Party) Share this | | Hansard source

My question is to the Assistant Treasurer. What has the government done in its first few months in office to introduce greater transparency into the petrol industry?

Photo of Chris BowenChris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | | Hansard source

I appreciate the question from the honourable gentleman and I appreciate the opportunity to outline to the House the actions the government has taken in its first few months in relation to transparency in the petrol market. On 18 December, less than a fortnight after the Rudd government was sworn in, we issued formal monitoring powers to the ACCC. These powers give the ACCC the ability to subpoena documents and witnesses if they fear anticompetitive conduct at any point in the petrol supply chain.

Importantly, on Saturday we fulfilled another election commitment with the announcement that Mr Pat Walker will be Australia’s new petrol commissioner. Mr Walker has been Consumer Protection Commissioner and petrol commissioner in Western Australia for the last 10 years. Under his leadership and the leadership of the Western Australian government, petrol prices have been a major focus of the Department of Consumer and Employment Protection in Western Australia. Indeed, Perth has gone from being one of the more expensive cities in Australia for petrol to one of the cheapest. I have asked the new Petrol Commissioner to investigate the recent increases in LPG and diesel prices which have been causing concern across the country, and particularly in relation to diesel in rural and regional areas, and to report back to the government on what more can or should be done. I welcome the endorsement from the Leader of the Opposition of that action.

The ACCC’s petrol report, handed to the government last December, underlines the need for these sorts of actions. The ACCC found the wholesale petrol market in Australia to be ‘a comfortable oligopoly’. Perhaps it is comfortable for producers, but it is not comfortable for consumers. It is important to understand that our position in government is the same as it was in opposition. The biggest impact on Australian petrol prices comes from world oil prices. But, when world oil prices are so high, it is incumbent on the government of the day to do everything possible to put downward pressure on prices by ensuring the market is working competitively—something the previous government did not do. They shrugged their shoulders and said over 11 years, ‘Australian working families have never been better off.’ Therefore they chose not to take action in relation to petrol prices. This government has a different approach. We believe that through competition and transparency we can put downward pressure on petrol prices, and that is what we will continue to do. I am pleased to report to the House that the Rudd government has done more to introduce transparency into the petrol market in Australia in the last 2½ months than the previous government did in 11½ years.

There is, of course, more to do. We will continue to work with the ACCC on their suggestions and recommendations for action, including investigation of the so-called buy-sell arrangements between oil companies, which mean that a problem in a refinery of one producer flows through to other producers and all consumers pay more for their petrol. We will also continue to work on the issues of transparency and more information for consumers that the ACCC raised in their report.

Given that I have been asked by the honourable member for Leichhardt about the government’s actions since the election, it is appropriate that I inform the House of some of the third-party commentary on those actions in relation to transparency in the petrol market. Peter Kell, the CEO of Choice, has said:

We are pleased to see the federal government stepping in on behalf of consumers in relation to petrol prices—

Photo of Joe HockeyJoe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | | Hansard source

Mr Speaker, I rise on a point of order. It was a very specific question. It did not ask for third-party references. I ask you to sit him down. Otherwise, get another question up from our side.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The minister will use the third-party endorsements incidentally to his answer.

Photo of Chris BowenChris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | | Hansard source

Peter Kell said:

We are pleased to see the federal government stepping in on behalf of consumers in relation to petrol prices and are especially pleased to see the ACCC has now been given a greater monitoring role.

The President of the NRMA, Mr Alan Evans, said:

Prime Minister Kevin Rudd and Assistant Treasurer Chris Bowen should be congratulated for acting quickly to expand the powers of the ACCC and work towards appointing a Petrol Commissioner as soon as possible.

On the weekend Mike Harris, Chief Executive of the AAA

Government Members:

Government members interjecting

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The minister will resume his seat. There is simply too much noise for anybody to hear what is going on except for the interjectors hearing their own voices.

Photo of Chris BowenChris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | | Hansard source

Mike Harris, the Chief Executive of the AAA, the peak motoring body for Australia, said:

The AAA motoring clubs—

Photo of Patrick SeckerPatrick Secker (Barker, Liberal Party) Share this | | Hansard source

Mr Speaker, I rise on a further point of order. He is defying the chair. There is no way that this is incidental.

Photo of Chris BowenChris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | | Hansard source

The AAA, the premium motoring organisation in Australia, said:

The AAA motoring clubs—the NRMA, RACV, RACQ

And all the state motoring organisations—

welcome ... Mr Walker’s appointment and we believe the scope of his brief will ensure motorists are paying a fair and reasonable cost for their fuel.

There is just one more. I did say I would inform the House of third-party independent commentators. I must admit: the next one is not a third-party independent commentator. She is the former leader of the Country Liberal Party in the Northern Territory. She said on 18 December, after I was interviewed on Darwin ABC radio:

We know governments and the ACCC are doing what they can on petrol, and I don’t think people expect more than that. I am pleased to hear what the federal minister had to say this morning.

I am glad that at least one conservative leader has taken a constructive approach to the issue of petrol prices in Australia. I note that the leader of the National Party has called for the GST to be reduced on petrol. Eleven years in office and they never came up with that idea.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The minister is now starting to debate the issue.

Photo of Chris BowenChris Bowen (Prospect, Australian Labor Party, Assistant Treasurer) Share this | | Hansard source

Eleven years in office and now all of a sudden they think they have a plan. I am not sure if it is actually official National Party policy. We can never be sure these days.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The minister will resume his seat.

Opposition  members interjecting

Order! Members on my left ought not get too overly excited.