Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Prime Minister, diesel has now crashed through $1.90 a litre. Aside from the government’s new road user charge, which will tax trucks and put upward pressure on grocery prices, what is the Prime Minister’s plan to provide relief for users of diesel?

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

Interestingly on the question of diesel, the previous government, being in office for 12 years, did not have a sterling track record of acting on this. The assumption therefore, both on petrol prices and on diesel prices, is that in a matter of six months the newly elected government can turn around and undo what has occurred with movements on petrol prices and diesel prices over the last 12 years. I find this a remarkable statement, given that they had the reins of power for so long.

Secondly, I would say this. When you look at our approach to a long-term response to the challenges of energy policy and petrol policy, it goes to these factors. One, global demand factors. What can be done when it comes to efficiency measures in developing countries, because when you have got the rise of China and of India you are pushing ahead with the impact on overall global energy prices? Then there are supply factors—and we have been debating the Iraq war here—and other factors which impact on supply. Then you go down to alternative fuels. Then you go down to fuel-efficient cars, and that includes diesel. It includes greater fuel efficiency in those cars which use petrol. It includes greater dependence on what we can do in a whole range of other measures which can assist fuel efficiency. On top of the above, you can also deal with the range of taxation imposts on families and motorists as well.

These constitute the elements of a long-term policy to deal with what is a global problem affecting motorists and governments right around the world. What the government has embarked upon is a long-term response along each of these measures. It is not embarking on a course of action such as those opposite: cherry pick a piece here, cherry pick a piece there, turn to rank populism the next day, and hope that that constitutes a policy.