Helen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Conroy. I refer to Labor’s repeated promises to reduce the cost of petrol and household groceries. Minister, when can working families expect to see reduced prices at the bowser and at the checkout?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Coonan for her question. On this side of the chamber we have a degree of optimism about the Australian economic future. As we have seen from today’s welcome unemployment statistics, we are coming into our 17th year of economic growth. But what senators should be aware of is that there are significant challenges on the horizon: the volatility of international markets and the threat of extended and elevated inflation. The biggest challenge facing this country is inflation.

The former government sat on its hands and ignored many, many Reserve Bank warnings—and I would like to go through them: on 7 February 2005, the RBA warned about upward pressure on inflation; on 2 March 2005, they raised rates; on 17 February 2006, the Governor warned again of upward pressure on inflation; on 3 May 2006, they raised rates; on 2 August 2006, they raised rates; on 4 August, the bank warned of an upward shift in inflation; on 18 August, they warned of further rate rises; and it goes on and on and on.

For the former government, which completely lost touch with the concerns of ordinary Australians, to come into this chamber and start crying about rising petrol prices, when the former government refused—

Honourable Senators:

Honourable senators interjecting—

Alan Ferguson (President) Share this | Link to this | Hansard source

Order! I cannot hear Senator Conroy’s response.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The former government ignored these concerns when the opposition, us at the time, called for a petrol prices commissioner. And what is one of the promises that we are moving very quickly to deliver on? It is to keep the petrol companies honest. We are going there; we are doing this.

Unlike those opposite, who have no regard for the ordinary concerns of working families in this country—none whatsoever; they would not give the ACCC a permanent reference; they would not give the ACCC the tools it needed to deal with petrol price exploitation—we have put in place mechanisms to deal with this issue. But let us be clear about this: for those on the opposite side to come into this chamber now and start crying crocodile tears when for 11½ years they would not give the ACCC the powers it needed, they should be ashamed of themselves.

Helen Coonan (NSW, Liberal Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I ask again, because Senator Conroy had no idea how to deal with the question, which is very straightforward: on what date can the people of Australia expect to find lower prices at the supermarket checkout and lower prices at the petrol bowser?

Honourable Senators:

Honourable senators interjecting—

Alan Ferguson (President) Share this | Link to this | Hansard source

Order! I will not call the minister until the Senate comes to order.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

Let us be clear: the ACCC’s report of its 2007 petrol inquiry found that the Australian petrol industry was relatively concentrated with significant barriers to the large-scale importing of petrol by independents. Why did it take 11½ years for the ACCC to be asked to do this? Because those opposite, when in government, completely ducked the issue. So what are the Rudd government’s policy initiatives in this area? We have given the ACCC the power to conduct formal petrol price monitoring and have it provide an annual report on price monitoring. For 11½ years we had nothing from those opposite when in government. We will appoint a petrol commissioner within the ACCC. For 11½ years we had nothing. (Time expired)