25 Oct 2008: Queensland: Call to drop the 8.35 cents per litre fuel subsidy ...

[ozbob]

Media Release 25 October 2008

Queensland:  Call to drop the 8.35 cents per litre fuel subsidy and put the money into improved roads and public transport.

RAIL Back On Track (http://backontrack.org) a web based community support group for rail and public transport and an advocate for public transport commuters has called for the fuel subsidy in Queensland to be removed and the money redirected into improved roads and public transport. The subsidy rarely reaches those it is intended to assist and just adds to the petrol companies' ability to obnubilate with respect to pricing.  It makes it harder for everyone to compare prices; it is like comparing pineapples to apples, rather than apples to apples.

Robert Dow, Spokesman for RAIL Back On Track said:

"The RACQ has claimed that the Government is struggling to ensure that the fuel subsidy is passed on to motorists.  Comparison of prices between the states suggests that Queenslanders do not get the value of this subsidy as they should."

"It would make a lot more sense to put the money into easing the road gridlock and further improvements in public transport throughout Queensland.  Both measures will help to ease traffic congestion and will in turn lead to fuel savings as there would be fewer delays on the roads. Motorists would save petrol and money!  Public transport is improved."

"This is the smart solution to the problem of ensuring the subsidy is passed on.  But, do we have a smart Government?"

Contact:

Robert Dow
Administration
admin@backontrack.org

[brismike]

I disagree as would many other motorists. I want to keep the 8.35 cents per litre subsidy and I don't want the government hiding it somewhere else. Regards - Mike

[ozbob]

Yes, probably many would agree with you Mike.  No worries there ...

Have had a bit of private feedback on this release too which is very supportive.

I was in Melbourne this week, the fuel prices were much same as here.  Government studies have also shown that the subsidy is not getting through to the actual prices that many motorists are paying at the bowsers.

Unless there is the a mechanism to ensure the fuel subsidy is actually received, it would be better spent on major infrastructure. 

The other states seem to do perfectly well without the subsidy.  So I guess the Government has to come up with a scheme that does deliver the subsidy to motorists and not to the oil companies, or do something else?

See this too --> http://backontrack.org/mbs/index.php?topic=724.msg6656#msg6656

Cheers
Bob