Nola Marino (Forrest, Liberal Party) Share this | Hansard source

I rise to speak on the National Fuelwatch (Empowering Consumers) Bill 2008 and related bill and on what will be the abject failure of Fuelwatch to provide cheaper fuel for general motorists and the transport industry. It has failed in Western Australia, where it is now in operation, and it will fail throughout wider regional Australia subsequent to the rollout of Fuelwatch. Regional Australians have an equal right to benefit from any federal government initiative to reduce fuel prices. How does and how will Fuelwatch benefit regional and remote Australians? There is no doubt that we have some extremely efficient and committed small, medium and larger operators in a very competitive transport industry in Australia. It is an industry that delivers 1.69 billion tonnes, which is over 70 per cent, of domestic freight throughout this country. I would like to put this in perspective. I spoke to one such company in my electorate of Forrest this morning. Since the election their fuel bill has gone from $5 million a month to $7 million a month, from 17 per cent of their input costs to 23 per cent of their input costs. As we know, transport companies cannot absorb these additional costs. The increased fuel cost has to be passed on to the end user: Australian farmers, consumers, families, businesses and individuals. Increased transport costs also make Australian exports less competitive, and one in four jobs in regional areas is dependent on exports. Most agricultural exports start their journey by road.

The ACCC report on unleaded petrol states that a number of issues need to be considered before taking Fuelwatch national. One of those issues to be considered is whether regional and country markets are sufficiently competitive to benefit from increased price transparency. Let us look at FuelWatch in some areas of my home state of Western Australia. There is no evidence that watching fuel has actually reduced prices, and in actual fact recent evidence shows that weekly prices are generally higher in WA than in other mainland states. Monitoring shows that prices are consistently higher in Perth than in other capitals. Interestingly, the weekly price cycle under FuelWatch has lengthened to a two-weekly cycle. Motorists who fuel up their cars weekly are forced to buy at a higher price every alternate week. That affects 76 per cent of motorists, who fill up at least on a weekly basis. ACCC Chairman Graeme Samuel has said that Fuelwatch is not about saving motorists money; it is not a process whereby consumers might be able to save 1c or 1.5c a litre off their fuel costs. In fact, the ACCC has been reluctant to attribute any downward pressure over time on WA prices to FuelWatch, pointing out that other forces are at work in the market. An editorial in the West Australian said:

Fuelwatch, at best, helps people to find where the lowest prices are, but it doesn’t come close to doing anything about the petrol-price cycles used by the big companies. Any savings it may help motorists to make are at the margins.

If the intention of Fuelwatch is to increase competition, what will the impact be on small independent retailers across Australia? What have the effects of Fuelwatch been on the independent retailers in Western Australia? There are many who say that Fuelwatch is driving them out of business. There is evidence that Fuelwatch has given motorists even less choice. Recently the member for Cowan, Luke Simpkins, asked the Prime Minister:

Is the Prime Minister aware of the case where a Perth service station owner was fined almost $5,000 for the crime of simply dropping his petrol prices during the course of a day?

The member for Cowan then asked:

Can the Prime Minister confirm that his legislation establishing the failed FuelWatch scheme nationally will contain similar penalties as those in WA?

I, like the member for Cowan, would ask: how can it possibly be more competitive and in the best interests of motorists and the transport industry to prevent service stations from lowering their fuel prices during the course of any given day? The regulation impact statement, tabled in parliament, clearly states that independent service stations are at a competitive disadvantage under Fuelwatch. The report notes that FuelWatch in Western Australia has:

... harmed the competitive position of independents as it allows large operators to adopt a strategy of rolling price leaders. Operators with small networks are less able to employ this pricing strategy and are therefore placed at a competitive disadvantage in the market.

Further, it appears from this report that the Australian government will actually be funding anticompetitive activity by funding Fuelwatch. The report notes:

... the provision of this taxpayer funded service creates greater opportunities for price co-ordination amongst retailers, especially in more concentrated markets.

Here there has always been increased concentration in the fuel market. We also know that Treasury advised that Fuelwatch would cost small business $4,000 a year to implement and that it would disadvantage small independent fuel retailers—those working hard day in, day out to compete with the majors and clearly losing the battle. There was no consultation with small business prior to Fuelwatch being considered by cabinet. We also know that the Prime Minister has ignored top-level advice. Four of the government’s own key economic departments advised against the Fuelwatch scheme and expressed concern that it might actually push petrol prices up instead of reducing them. That cabinet ignored such strong warnings from the Department of the Prime Minister and Cabinet; the Department of Finance and Deregulation; the Department of Innovation, Industry, Science and Research; and the Department of Resources, Energy and Tourism totally undermines the government’s claim relating to Fuelwatch.

According to FuelWatch in Western Australia, unleaded petrol in Perth today is $1.56 a litre; diesel is $1.84. In my electorate of Forrest, unleaded petrol in Walpole is $1.66; in Karridale, it is $1.71; in Manjimup, $1.64.5; and in Northcliffe, $1.76. Diesel is $1.69 in Manjimup and $2 a litre in Northcliffe. That is FuelWatch working in regional areas.

How, then, is FuelWatch benefiting regional and rural areas of the south-west of Western Australia where there is limited competition? And how will Fuelwatch benefit remote areas of Australia where there may be only one fuel supplier? Australians deserve a fuel initiative that is not based on a postcode. How does Fuelwatch assist small fuel buyers in isolated rural and regional towns where there are only one or at best two fuel suppliers? Do they have to get into their vehicles and drive to the nearest major centre to fuel their cars up on each alternate cheap Tuesday? What type of false economy would this be when you live 100 kilometres or several hundred kilometres from a major centre?

During the last election campaign the now Prime Minister and Labor government promised Australian motorists lower petrol prices. I call on the Prime Minister to deliver on his election promise and guarantee that the introduction of Fuelwatch will provide motorists and the transport industry with lower fuel prices right across Australia.

Debate (on motion by Mr Albanese) adjourned.

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