Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Sherry. I refer to the news today that Liberal MP and former Parliamentary Secretary to the Treasurer Chris Pearce now supports Family First’s policy of cutting petrol tax by 10c a litre. That is in addition to the news last month that the coalition did a U-turn and has come halfway to Family First’s policy by supporting a petrol tax cut of 5c. Would the minister confirm whether there are also closet petrol tax cut supporters in the Rudd government?

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

Before calling Senator Sherry, could I remind you, Senator Fielding, that when you are referring to a person in the other place, you should use their correct name and title.

Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Link to this | Hansard source

I am not coming out of the closet. I am aware of Mr Pearce’s call. I was not aware he was in the closet. I understand that he and a number of members of the opposition have publicly called for a doubling in the fuel tax cut from 5c to 10c. It will be interesting to see in their current muddled state whether the Liberal opposition in fact embrace this latest call from some in the opposition to double the cut in fuel tax from 5c to 10c. There are a couple of points I want to make about this. Firstly, as I am sure most are aware, global crude oil prices—

Cory Bernardi (SA, Liberal Party, Shadow Parliamentary Secretary for Families and Community Services) Share this | Link to this | Hansard source

How much is petrol today?

Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Link to this | Hansard source

I am always asked the question of how much petrol is today. I can inform the Senate that, in my home city of Devonport, unleaded is at 164.9c. I can inform the Senate that in Canberra it is at—

Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. Family First get one question a week and we have got the coalition asking questions in my question. Can the minister get back to Family First’s question, please?

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

Senator Fielding, you know that that is not a point of order.

Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Link to this | Hansard source

Everyone is coming out of the closet, Senator Fielding. In terms of the Canberra price, it is 169.9c. In fact, when I have been challenged to give the price—in this case, unleaded petrol in my local community—I have issued a counterchallenge to members of the opposition, who continue to demand these prices, which I do give to them. Write down your local petrol price, Senator Bernardi, on that bit of paper you are writing on now and let us see whether you know the price of unleaded petrol in your backyard.

Global crude oil prices have been rising strongly over recent years, putting pressure on domestic petrol prices and family budgets. The world benchmark, West Texas crude oil price, is now trading just over US$135 a barrel; that has more than doubled over the last two years. It is not just the last six months, Senator Minchin; it has more than doubled over the last two years. We do know that these increases have flowed on in the form of significant rises in the cost of petrol in Australia. The Labor government understands the pain that high petrol prices are inflicting on working families.

We know that increasing petrol prices are hurting Australian families. This, of course, is in addition to the burden of 12 straight interest rate rises. We do know that interest rate rises and increasing petrol prices hurt families and hit them hard. The government is taking action to deal with the impact of fuel prices on Australian families. Firstly, we need to understand the global nature of this challenge. It requires both a global and a domestic response.

Opposition Senators:

Opposition senators interjecting—

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

Order! There is far too much noise across the chamber. Senator Sherry deserves to be heard in silence.

Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Link to this | Hansard source

We do understand the global nature of the challenge. It does require both a global and a domestic response. At the G8 finance ministers meeting last weekend, which Mr Swan, the Treasurer, attended, he urged the G8 to take collective action to address what is a structural supply and demand imbalance in the global oil market. He joined with the G8 finance ministers in calling on oil producing nations to lift global supply. Fundamentally, price is a reflection of the supply squeeze that is being seen in the global world oil market at the present time. On the domestic front, this government has taken a number of initiatives— (Time expired)

Steve Fielding (Victoria, Family First Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Families in the outer suburban and regional areas do not have good public transport alternatives and are really struggling with record petrol prices. Given the coalition missed the opportunity to cut petrol tax by seven months, would the closet supporters of petrol tax cuts in the Rudd government please step forward now? Why won’t the government give families some immediate relief from the pain of skyrocketing petrol prices?

Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Link to this | Hansard source

I cannot speak for the closet supporters, or whatever they are called in the opposition, but it will be interesting if Senator Minchin, Mr Turnbull and the short-term opposition leader adopt this new policy which is being advanced by various members of the coalition for a further cut in petrol price from five to 10c. Not content with blowing a massive hole and obstructing our various budget measures, if this further cut were to be adopted by the opposition, we would have a $30 billion reduction in the surplus. That is significantly above— (Time expired)