Commonwealth plans to raise fuel excise outrageous

13/4/94

Transport Minister Eric Charlton has described as outrageous Commonwealth plans to raise the Federal fuel excise by one cent a litre to fund employment programs.

"The proposal is inequitable and immoral and all Western Australians should be outraged," Mr Charlton said.

"Federal Treasurer Ralph Willis should be condemned for contemplating a further rip off of Australians through a rise in fuel costs without making a commitment to direct the extra revenue towards the national road system.

"It is disgraceful.  For too long the Western Australian motoring public has been the milch cow for Commonwealth spending programs that have nothing to do with roads."

Mr Charlton said the proposal was also short-sighted because the Commonwealth could achieve its goal of job creation by allocating extra funds to roads.

The Minister said that for each additional $100 million spent on highways, 1,700 new construction jobs were created and a further 2,300 new jobs in other areas.

In Western Australian tourism - where road infrastructure was vital - it was estimated that 14 new jobs were created for each $1 million invested in the industry.

Mr Charlton said Western Australian motorists paid more than $700 million to the Commonwealth from fuel excise of 31 cents per litre.  Just $150 million, or the equivalent of 6.5 cents per litre, was returned to the State for roads.

Western Australia's allocation for national highways, of which it was responsible for 25 per cent, was a mere $55 million this financial year, or just seven per cent of the national allocation

In addition to the fuel excise, motorists also paid billions of dollars extra in other fuel and vehicle taxes, including excise on crude oil and sales tax and import duties on motor vehicles and parts.

Mr Charlton said WA's road system was rapidly approaching crisis point and that the serious issues brought on by the decline in Commonwealth road funding sources would be debated fully by government and industry groups at this month's road funding summit.

"Over the next 10 years, 30 per cent of the sealed road network in this State will have an age of more than 40 years," he said.

"Technically, that means they have reached the end of their safe working life and the replacement cost for these roads is $2 billion.

"Because the Commonwealth is cutting back road funding to WA, Main Roads is currently reconstructing these roads at three and a half times less than the required rate."

Mr Charlton said there were other significant savings to be derived from improving the State's road network.

There would be less fatal and serious injury accidents which cost Western Australians $916 million annually, or the equivalent of $546 per person.

Better roads also meant benefits for the environment and consumer because a free-moving and efficient road system cut pollution and the cost of running a motor vehicle.

Media contact:  Dean Roberts 321 7333 or 222 9595