Perth residents favour return of fuel levy to State

15/4/94

A recent survey of Perth residents showed that the majority believed at least half the revenue raised by the Federal fuel excise should be returned to the States for roadworks.

Transport Minister Eric Charlton said the findings vindicated the current joint road funding campaign involving the Government, local government and industry groups which was attempting to get the Commonwealth to increase Western Australia's share of the annual allocation of funds for roads.

The Minister said the findings were all the more convincing considering the survey was restricted to Perth people.

Mr Charlton said he believed the response would have been even more overwhelming had it been conducted in the country where people are experienced with poor road conditions and high transport costs.

The survey of 400 people, conducted by Australian Consumer Research, showed that 83 per cent were in support of at least half the $9 billion collected annually by the Commonwealth through fuel tax being returned to roads.

Thirty five per cent believed all of the revenue should be spent on road construction and improvements.

The survey also found that 46 per cent of people said the issue of increased road funding was very important while 37 per cent deemed the issue moderately important.

The Minister released the findings today while formally announcing Friday April 29 as the date for the State Road Funding Crisis Summit.

"These findings are an indictment on the Commonwealth's road funding policy," Mr Charlton said.

"The campaign, which has been put together by a number of groups which recognise the severity of the problem facing WA's road network, clearly taps into community sentiment on this subject.

"The upcoming summit and the ensuing campaign will highlight the direct relationship between the quality of our $100 billion road system and the critical social and economic issues.

"Studies undertaken by John Cox of the Australian Road Research Board confirm the correlation between expenditure on roads, economic development and employment."

Mr Charlton said the research showed that each additional $100 million spent on highways would produce 1,700 new construction jobs and a further 2,300 new jobs in other areas.

Research concluded also that the benefits from a more extensive primary road system included a 50 per cent reduction in the rate of traffic accidents, a 10 per cent reduction in vehicle running costs, less pollution and a 30 per cent reduction in travel time.

Mr Charlton said the umbrella theme of the summit and campaign, 'Fix Australia - Fix The Roads' summed up the objective of government and industry alike - to attract an increase in Commonwealth funding to improve the road system.

"WA motorists pay more than $700 million to the Commonwealth annually in fuel excise, which is currently 31 cents a litre," Mr Charlton said.

"However, we receive in return for roads just $150 million - $125 million a year short of what we need to bring our road network up to scratch.

"Because of the decline in Commonwealth funds, 30 per cent of WA roads are now reaching the end of their workable life span."

The summit will be held in the Subiaco Theatre Centre, and Federal Transport Minister Laurie Brereton and other State and Territory Transport Ministers have been invited.

Opposition Transport Spokesman John Sharp will be addressing the summit, and other speakers will include Mr Cox, David West (Royal Automobile Club), Tom Hamilton (Sir Charles Gairdner Hospital), and Howard Croxon (WA Road Transport Association).

"It is important the community understands the direct impact increased road funding can have," Mr Charlton said.

"Not only on the quality of their road system, but on a range of factors which are so important in our community today.

"Roads are part of the infrastructure upon which our community and quality of life are built.

"Clearly, it is not an issue for WA alone.  As the campaign slogan indicates, this is an issue impacting on all Australians and the quality of life we share."

Media contact:  Dean Roberts 321 7333 or 222 9595