Article: Fischer calls for car tax

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Fischer calls for car tax

Fischer calls for car tax

Royce Millar
February 4, 2008

FORMER deputy prime minister and senior transport consultant Tim Fischer has backed a congestion tax ? similar to London's or Singapore's ? as a way of encouraging Melbourne commuters out of their cars and on to public transport.

He has called on the Brumby Government to appoint a high-level taskforce to fix the gaps in Victoria's planning for rail, roads and ports as part of a new holistic approach to transport.

Mr Fischer, who was trade minister and deputy prime minister in the Howard government, said car travel was too easy in Melbourne because drivers did not pay the full community resource cost of their road use, such as the environmental impact and the multibillion-dollar drain on the economy from congestion.

He said an electronic tax on cars entering the central city should be examined, although it would be unfair before the rail system could cope with a widespread shift to public transport by Melbourne motorists.

Treasurer John Brumby has repeatedly ruled out a congestion tax, despite mounting support for it from business and environmental groups and academics.

In 2005, Mr Brumby asked the Victorian Competition and Efficiency Commission to investigate the cost of congestion and suggest solutions. He allowed it to examine all options but one, a congestion tax.

Yesterday a Government spokesman said: "As has been previously stated, the Government has no plans for a London-style congestion tax."

Last week Mr Fischer weighed into the Port Phillip Bay dredging debate, warning of a traffic nightmare from the growing fleet of trucks carrying freight containers to and from the Port of Melbourne.

He joined calls for the state to speed up its long-term plans for the transfer of container ship traffic to Hastings on Western Port where, he estimates, proper planning could allow 90% of containers to be transported by rail.

Mr Fischer chaired a committee that reviewed Victoria's rural rail freight system. The Government is waiting for Sir Rod Eddington's assessment of east-west transport needs in inner and middle Melbourne.

But Mr Fischer said limited briefs meant the two reviews left gaps in transport strategy, especially around freight. Sir Rod's brief, for instance, did not allow him to look at Hastings as a major container port or how such a major development might affect transport in Melbourne.

Mr Fischer told The Age that a high-level taskforce was needed to consider both reports and the transport system more holistically.

Responding to the call for the taskforce, the Government spokesman said: "In 2006 the Victorian Government released its 10-year, $10.5 billion transport strategy called Meeting our Transport Challenges.

"We have a plan for Victorian transport into the future. Once Rod Eddington has completed his work on Melbourne's east-west transport needs, it will be considered in light of that strategy."

Singapore introduced a congestion tax in 1975. Each car entering the CBD restricted zone in peak periods was required to have a special licence.

The cost of motoring virtually doubled, congestion on key routes fell more than expected and car-pooling increased dramatically.

The system was originally enforced by inspectors but went electronic in 1998.

London introduced its tax in 2003. Opposition was strong, but supporters said traffic was crippling London and cost it ?2 billion a year. Its air-pollution levels were also among Europe's worst.

A cordon was drawn around the central business and entertainment areas and motorists wanting to enter between 7am and 6.30pm on weekdays were charged ?5 (since increased). Significant fines were introduced for evading the tax. The system was monitored by a network of cameras that cost $200 million.

The results have been significant. Journey times fell by 14%, delays are down by 30% and average speeds have increased inside the cordon.

The revenue has been reinvested in public transport. Waiting times for buses have been cut by a third.