C'wlth diesel fuel rebate for mining and agriculture sectors welcomed

13/8/96

Commerce and Trade Minister Hendy Cowan has welcomed the Federal Government's announcement that the diesel fuel rebate for the mining and agricultural sectors will be retained.

Mr Cowan said that to have removed the rebate in the coming Budget would have been a major blow to resource and agricultural industries in regional areas of Western Australia.

He reinforced comments by Deputy Prime Minister Tim Fischer that the rebate in no way constituted a subsidy.

"Commonwealth fuel taxes were originally intended to be spent on the public road system, so it was appropriate that there be a rebate for vehicles used on private roads," he said.

"It is to be hoped that today's announcement will put paid to the prospect of any future changes to rebate eligibility for the mining and agriculture sector."

Mr Cowan said Mr Fischer's comments in relation to the diesel fuel rebate were some welcome good news from Canberra.

"Further good news would be a pledge that a greater proportion of the money collected from fuel taxes finds its way back to our roads and that the practice of indexing those taxes be scrapped," he added.

"The fact is that an increasing amount of money collected through fuel taxes is being spent in areas other than road funding."