Gai Brodtmann (Canberra, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer and Minister for Financial Services and Superannuation. Will the minister outline to the House the importance of delivering on reforms to alternative fuels that will help return the budget to surplus? How have these reforms been received and what is the government's response?

Bill Shorten (Maribyrnong, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank the member for her question. The Gillard government is completing the overhaul of the fuel excise statement. We seek to ensure that there is a consistent and neutral tax regime for all fuels used by vehicles. We on this side of the House believe that all road users should pay their fair share and we also believe in getting our budget into surplus by 2012-13.

Mr Robb interjecting—

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

Order! The member for Goldstein has had a fair go today.

Bill Shorten (Maribyrnong, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

We intend to set excise rates for fuels capable of being used by internal combustion engines. We are putting into place, including the excise system, gaseous alternative fuels. Today, we have outlined a 50 per cent discount on the fuel energy content for the excise to be set for LPG and other gaseous fuels and we have outlined a five-year transition path.

The transition path has been longer than five years because the first people to propose including LPG and gaseous fuels in the excise system were none other those in the opposition when they were in government. In the 2003 budget, then Treasurer Costello said it was appropriate to include LPG in the fuel tax system. So this has been a process which has been underway since 13 May 2003 and we are determined to finish the job.

I also note for the interest of the House that, due to the superb advocacy of regional Labor MPs and crossbench MPs, we will exempt ethanol and biofuel for 10 years. These reforms will ensure a fairer and more transparent fuel excise system with improved competitive neutrality for fuels. I do not mean to make the Leader of the Opposition yawn. He has had one talk with Senator Nick Minchin on this topic and, in fact, when we looked at what we were doing in this process we found this has been in the forward estimates since 2003. I have to report to the House that the government cannot claim credit for this policy. We should share the credit. We are finishing the job but we did not start the job. I quote Peter Costello's media release—

Ms O'Dwyer interjecting—

I do not know why the member for Higgins is interrupting—she probably wrote this—but Peter Costello said:

The reforms will establish a fairer and more transparent fuel excise system with improved competitive neutrality between fuels.

But this policy, which has been here since 2003, does not just stop there. There is more. Indeed, I go to the grand old man of the Liberal Party, none other than John Winston Howard. He released a press release on these very same matters on which I address the House today, but he released it on 16 December 2003. History is truly inconvenient to those opposite. He said:

Today I announce an overhaul of the fuel excise system.

How sad it is they no longer listen to their former leader. The then Prime Minister Howard said:

These reforms—

he is referring to excise and including LPG; John Howard said this, friends—

will result in a more consistent and neutral tax regime for fuels used in vehicles.

It does not stop there. The country cousin of the Liberals, John Anderson—he was a real leader of the National Party—put out a press release on the same day back in 2003 and he said: 'Excise decision boosts regional Australia'. Come on, Nats! Get on board with the regions. In fact, as I looked through the newspaper clippings I came to the Age of 27 May. Nick Minchin also said: 'The Liberal Party will never get into government by opposing good policy. We should stand up and support the sorts of policies which are good policy.' I congratulate the member for Higgins and Senator Ryan for standing up for good policy. (Time expired)