Julie Owens (Parramatta, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister outline the factors behind the rising cost of petrol and the impact this is having on working families?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the honourable member for Parramatta for her question. The House would be aware that we are experiencing a period of major instability—

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The asking of a question of the Prime Minister was not an invitation for those on my left to start baying. The answer should be heard in silence.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

The House would be aware that at present across the global economy we are experiencing considerable instability in global financial markets. There is great uncertainty across the global economy, and it is uncertain still in terms of how circumstances will evolve. We have very tight credit circumstances in financial markets, weaker stock prices and global commodity markets. But, on top of that, we have had recent significant moves on the overall price of petrol. Overnight crude oil prices reached a historic record high of $US110 per barrel on global markets. The soaring crude oil price reflects a strong global demand against what, of course, continues to be limitations in global supply.

These factors compound the cost of living pressures for working families. When working families are dealing with interest rates going higher and higher, 12 on the trot—when they are added to the cost of child care, added to the cost of groceries and added to other cost pressures affecting the family budget—it is important that government does everything within its power to assist working families under financial pressure.

When you look specifically at petrol prices, the numbers are significant in themselves. Petrol prices have risen 14.3 per cent in the past year. That is four times the rate of inflation. In the five years to December 2007, the official measure of automotive fuel prices recorded an increase of 50 per cent. That is why the government is absolutely committed to taking every reasonable step to boost competition within the petroleum industry in order to ensure that motorists do not have to pay a single dollar more than is necessary at the bowser.

Opposition Members:

Opposition members interjecting—

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I find it interesting, again, to see the mock outrage from those opposite, from whom we saw such action, such commitment and such passion on how to enhance the powers of the competition regulator in this space. The member for Higgins knows precisely what I am talking about, since this week he has emerged from his laptop. That is, he had 11½ years to give proper powers to the competition policy regulator to conduct proper investigatory arrangements when it came to the petroleum industry and failed to do so—until Labor in opposition indicated that we were about to appoint a petrol commissioner. Then, hold the phone, suddenly we had a plethora of activity on the part of those opposite; 11½ years of inaction, inertia, nothing, then—six months before an election—whoops, we have the alternative government recommending the establishment of a petrol price commissioner. Then, hold the phone, the member for Higgins says, ‘I’ve suddenly got an interest in the area.’

This government has announced the appointment of a petrol commissioner to oversee the monitoring of fuel prices and report annually. We have nominated Pat Walker to fill this role. The petrol commissioner will be responsible for overseeing the ACCC’s monitoring of fuel prices in Australia, including LPG and diesel. He will also provide an annual report on the ACCC’s findings. The ACCC’s recent inquiry into the price of unleaded petrol raised several matters that the petrol commissioner will be reviewing as part of his role, including, firstly, a detailed examination and ongoing monitoring of biocell arrangements; secondly, an audit of terminals suitable for importing refined petrol into Australia, covering terminal capacity, use and leasing and sharing arrangements; and, thirdly, ongoing monitoring of the use, leasing and sharing of terminals suitable for importing refined petrol into Australia. These are all factors which will have an effect on competition in the retail petrol sector and on prices at the pump.

The government has also directed the ACCC to monitor the prices, costs and profits relating to the supply of unleaded petrol products in the petroleum industry, including imports, refining, wholesaling and retailing. The government is actively considering all of the ACCC’s recommendations, including options to increase retail price transparency. Once we have worked through those options exhaustively we will have more to say.

I can say, on behalf of the government, that in three months we have acted on these matters. After 12 years, from the party opposite, we had nothing more than a litany of inaction and lack of interest. And, added to the other cost-of-living pressures on working families, we had a party opposite which had simply lost touch with the interests of working families.

Don Randall (Canning, Liberal Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. Can I ask that the Prime Minister table the document that he read everything from?

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Was the Prime Minister reading from a document? Was the document confidential?