David Pocock (ACT, Independent) Share this | Hansard source

I start by associating myself with the remarks of Senator Ciccone in relation to Dom Giannini, a journalist who is leaving the press gallery—a great bloke and a very good journalist who will be sorely missed.

I'm really concerned by this move from the Albanese government—after not acting earlier, just capitulating to demands from the coalition. You have to acknowledge that this will bring the price of fuel down for Australians for the next three months, but I think this is poor policy and, ultimately, will not serve us well as a country. We're going to create more demand in the cities at the exact same time that we want to ensure that people in regional areas and farmers have the fuel they need.

Richard Holden, an emeritus professor of economics, has said that this is a 'very bad idea'. He says that removing the fuel excise 'is simply going to make demand higher than it otherwise would be, which is going to make the fuel shortages we've already experienced worse'. Research from the e61 Institute shows that this kind of measure would disproportionately benefit high-income earners. This is short-term policymaking that will result in long-term pain. Independent economist Saul Eslake said that the move increases the chance of a rate hike. This morning, my office met with representatives of the transport industry, who said, 'Clearly, this will hurt the industry.'

So it's bizarre that you have the coalition saying: 'We need fuel in the regions. We need fuel for farmers'—things I strongly agree with. But, at the same time, they're pushing a policy that is going to increase demand in metropolitan areas. It doesn't make sense. Surely, we can do better than this when it comes to dealing with what is a crisis at a time when Australians are genuinely feeling the pinch.