Fed: Motoring bodies cautiously welcome country fuel grant

AAP General News (Australia)
04-12-2000
Fed: Motoring bodies cautiously welcome country fuel grant

CANBERRA, April 12 AAP - Motoring bodies have offered cautious support for the federal
government's country fuel grant, designed to ensure the price of fuel does not rise because
of the GST.

Treasurer Peter Costello said consumers would be the big winners from the grant scheme,
announced yesterday.

Under the plan, a one cent a litre rebate would be paid to fuel retailers in regional
areas and two cents for those in remote areas, which would then be passed on to motorists.

The Australian Automobile Association said it generally welcomed the scheme but would
need more detail before giving it a complete thumbs-up.

"Naturally AAA will need to see the final details of the scheme and in particular how
it will operate before deciding whether or not to fully endorse it," said AAA spokesman
Greg Hunting.

Victoria's peak motoring body, the RACV, said the petrol scheme opened new questions.

"For example, what is the definition of a remote and non-metropolitan location, exactly
how much will be removed from the excise and can the scheme be policed effectively?" RACV
spokesman David Cumming said.

Without a freeze on the automatic indexation of petrol excise to the CPI, the price
of petrol would only be stable on July 1, Mr Cumming said.

"After that, any rise in CPI will mean a compounding increase in petrol prices."

The Motor Trades Association welcomed the fuel plan, but stressed its administration
should be kept as simple as possible.

Mr Costello said consumers would make sure fuel operators passed the grant on at the petrol pump.

"I've found, in dealing with price changes, that consumers are exceptionally well informed
and with something they're buying every day like petrol, they are doubly exceptionally
well informed," he told ABC television.

A price exploitation hotline would be set up, he said.

"You will get calls. The ACCC is able to investigate ... if there is not a satisfactory
explanation it has huge powers at its disposal."

AAP daw/cjh u

KEYWORD: TAX FUEL DAYLEAD

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