Chris Pearce (Aston, Liberal Party) Share this | Hansard source

I rise in the House today to add my voice to the chorus of concern about the way in which the new Rudd Labor government are treating the legislative process with such contempt. We have to really seriously ask the question: what is going on with the government? On the one hand we have a so-called tax review, which they keep telling us is a comprehensive tax review that is going to look at everything to do with tax and is going to be all things to all people. On the other hand they are sneaking through, catapulting through, all this new tax legislation that has come out of their first budget. That in itself is a very interesting point to note: we are actually here in the House of Representatives today talking about the introduction of a new tax.

Mr Deputy Speaker Andrews, as you would know, the first budget of the Rudd government is the first federal budget in years and years to introduce a new tax. Rudd Labor have introduced new taxes to the Australian people for the first time in years. So, on the one hand we have this so-called wonderful tax review that is going to look at everything and be all things to all people, and on the other hand we have the Tax Laws Amendment (Luxury Car Tax) Bill 2008 and related bills being rushed through the House. However, to my amazement I woke up this morning and went to my favourite newspaper, the Australian, to read on the front page a story with the headline ‘PM hits brakes on luxury car tax’. This is a story by the political editor, Dennis Shanahan, a very respected political editor. The piece says:

THE Rudd Government is prepared to review the $555 million luxury car tax only two weeks after it was unveiled in the budget and even before the new tax laws are introduced into parliament.

The article goes on to say:

The Government is to refer the luxury car tax to the review of the tax system being conducted by Treasury secretary Ken Henry, after calls from the automotive industry and the Government’s declaration that “taxes on taxes” were an anomaly.

So, here we have, on the one hand, the government feeding stories to the media saying they are going to refer this so-called luxury car tax to this wonderful tax review that they have established, and then on the other hand here they are forcing the legislative process, this bill, through the House—rushing it through the House without due debate and consideration. Really, Mr Deputy Speaker, you have to ask: what is happening? Again, as I said, the piece mentions ‘the government’s declaration that “taxes on taxes” were an anomaly.’ I will tell you what is an anomaly: the Rudd government. They are the problem that we have right now. You really do have to ask yourself what has brought all of this on. Why, all of a sudden, has this bill been rushed into the House of Representatives? Why has the opposition been told by the government, last night and again this morning, that this bill has to be finalised today, that it has to be passed? You have to ask yourself the question: what has brought all of this about?

I think the answer is obvious. What has brought all of this on, of course, is the ‘fuelgate’ crisis that the Rudd Labor government are in. This is all about ‘fuelgate’. This is all about the promise that Kevin Rudd made before the last election—that, if he were to become the Prime Minister of Australia, he would reduce the cost of petrol, he would reduce the cost of groceries and he would reduce home loan interest rates. All three of those—the price of petrol, the price of groceries and home loan interest rates—have gone up since Kevin Rudd became the Prime Minister of Australia. So the reason we are standing here in the House of Representatives this morning, being told that this is a piece of urgent legislation, being told that there will not be the normal legislative process and that it will have to be debated, voted on and passed today, is ‘fuelgate’. The Rudd Labor government are in damage control over what has happened with their promise to reduce the cost of petrol. Of course, we have this fandangle idea that the Rudd Labor government are going to introduce Fuelwatch—this so-called wonderful system that has worked so well in Western Australia.

I was surprised today to read in the Melbourne Herald Sun about new research that shows that Labor’s proposed Fuelwatch scheme may drive up the petrol price. The research compares prices recorded in Perth, where there is a FuelWatch system in place, with those recorded in Sydney and Melbourne. The report says:

A three-month survey reveals unleaded fuel was at least one cent a litre dearer in Perth than in eastern states.

During some weeks, the price soared even higher, with Perth drivers paying nearly $2 more to fill up the family car with 40 litres of fuel.

The survey found that the cost of petrol was actually dearer than in Sydney and Melbourne in all but three weekly periods.

So you had Kevin Rudd, before he was Prime Minister, saying, ‘Vote for me and I will reduce the cost of petrol, I will reduce the cost of groceries and home loan interest rates will come down.’ He became the Prime Minister and what has happened? Home loan interest rates went up, the cost of groceries went up and the cost of petrol went up, new taxes were introduced in the budget—like on cars et cetera—and his answer is that he will watch petrol; he will introduce some system. According to the survey that has been quoted in the Melbourne Herald Sun, it has actually resulted in the cost of fuel in Perth being more expensive for people than in Sydney or Melbourne.

So the reason that we find ourselves right here today talking about the luxury car tax as a result of the budget—

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