Fed: Democrats block petrol inquiry number 49

AAP General News (Australia)
08-21-2000
Fed: Democrats block petrol inquiry number 49

By Stephen Spencer, Economics Correspondent

CANBERRA, Aug 21 AAP - Australians will just have to get used to high petrol prices,
the Australian Democrats said today as they quashed plans for an inquiry into soaring
prices.

With petrol topping $1.00 a litre in most cities, Queensland Premier Peter Beattie
wants to turn up the heat on the federal government over the GST.

His call for a Senate inquiry won the backing of the federal opposition and Labor premiers.

But Democrats leader Meg Lees said the 48th inquiry into petrol had only just wound
up, and the Democrats were not prepared to waste time on a political witchhunt.

"The OPEC oil cartel leaders clearly have decided on a permanent rise in petrol prices,"

she said.

"Australia is just going to have to get used to it and adjust to it."

She said the only inquiry the Democrats would support was one that looked at how petrol
taxes could be redirected into public transport and alternative fuels, prompting a scathing
response from Mr Beattie.

"I'm appalled to see the Democrats are chickens on this issue," Mr Beattie said,

Financial Services Minister Joe Hockey said if Mr Beattie was serious about the issue,
he would hand back more of his GST take to motorists.

"Australian motorists have the fourth cheapest petrol in the developed world," Mr Hockey said.

"Petrol prices right around the world have gone up as a result of increasing oil prices,
something we don't control, and we see another inquiry as a waste of time."

Shell's retail development manager, Ian McKenzie, also dismissed the need for an inquiry,
but said the GST was partly to blame for rising prices.

"Since the 30th of June petrol prices have gone up about 10 cents a litre," he said.

"About two cents of that is increased taxes and about eight cents of that is increases
in international petrol prices."

Opposition treasury spokesman Simon Crean said Labor would use whatever means were
available to it to hold the government to its promise that the GST would not increase
petrol prices.

"They've got to stand in the parliament and justify why they've broken that promise
and we will campaign on it at the local level and use the forms of the parliament to expose
the deceit," he told ABC radio.

However, Opposition Leader Kim Beazley refused to say whether a Labor government would
lower petrol excise.

"The issue of fuel, as far as we are concerned, like everything else that's associated
with the GST rollback, goes into the pot for our consideration for putting out to the
Australian public much closer to the next election," he said.

AAP ss/daw/hu/de

KEYWORD: PETROL NIGHTLEAD

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