Debate on motion for fuel price inquiry

2016-09-14

Ms DUNN (Eastern Metropolitan) — I rise to speak on Mr O’Donohue’s motion, which refers to an inquiry into fuel prices in regional Victoria on a range of matters. It certainly is worth investigating the issue, although it would not be the first time it has come under the spotlight. Mr Mulino in his contribution raised Australian Competition and Consumer Commission investigations currently underway. It has been looked at extensively, and I hope, should Mr O’Donohue’s motion be successful, that the committee does not unnecessarily duplicate the efforts already undertaken in relation to these matters and in fact uses that as an opportunity to inform the work of the Economic, Education, Jobs and Skills Committee in its inquiry.

High fuel prices in regional areas do have a disproportionate impact on vulnerable groups and businesses. Because of the tyranny of distance and the low density of these communities, private vehicle travel is often the only option to make many necessary journeys. Some of these are already economically depressed, so to pay 10 cents more per litre for petrol or diesel than people in Melbourne metropolitan areas only disadvantages business operations and the ability of some families to get by. We also see similar issues playing out in the cardependent periurban areas of Melbourne. Those areas which have clusters of low socioeconomic communities are very dependent on motor cars for transport and very sensitive in terms of the amounts they have to pay in relation to mortgages.

In fact there is an index that is very useful in assessing social vulnerability and the interplay between the economy, mortgage and petrol. It is called the VAMPIRE (Vulnerability Assessment for Mortgage, Petrol and Inflation Risks and Expenditure) index, and I hope that, should the committee be doing this work, they actually look at the results of the VAMPIRE index. Developed by Griffith University’s urban research program, what it does indicate very clearly in its spatial or visual analysis is that there are enormous vulnerabilities where there is a lack of public transport. The interplay between good public transport networks and petrol vulnerability is a real issue and has certainly been measured by using the VAMPIRE index.

The motion calls for an examination of technology and tools such that motorists can compare fuel prices. I note that there are many different smart phone applications that provide this service and that the Royal Automotive Club of Victoria already provides information on its website for the prices of petrol and diesel in towns across Victoria, albeit on a rolling sevenday average. Perhaps limited access to the internet and the mobile network in regional and rural Victoria is a greater impediment to finding out this information than the issue of there being a lack of a central repository of such information. If that is the case, perhaps Mr O’Donohue needs answers in that regard. He could investigate the pathetically slow rollout of the federal Liberal government’s multitechnology mix broadband network.

The motion makes reference to examining regulatory and legislative barriers that may influence fuel prices and considering best practice approaches and initiatives in other states and territories with a view to reducing fuel prices. There may indeed be some good ideas out there — there sure are some bad ones. One state from which we could learn what not to do is New South Wales. In that sorry state the Baird Liberal government is threatening small familyowned petrol stations in regional areas with $1 million fines if they do not sell E10 ethanolblended petrol labelled as having an octane rating of 94, implying it is a premium grade fuel, which it is not. This will close down hundreds of stations, lead to an estimated 6200 job losses and reduce fuel price competition in rural and regional areas of the state.

The Labor opposition is curiously silent on the issue. That means the New South Wales Greens, the only party that have not solicited donations from the state’s monopoly ethanol producer, are the only hope for small petrol station businesses and the communities that depend on them. Indeed the only time the Liberal and National parties care about petroleum and gas in country areas is when they can frack farmland to get to it, liquefy it and export it overseas. They do not care about ensuring it is available to farmers, small businesses and families to run their cars, tractors and trucks.

Of course private road transport should not be the only option for regional and rural Victoria. If properly revitalised, Victoria’s regional rail network could provide freight and passenger transport alternatives to costly private road travel. To this end, the Greens support the reviving of the goldfields train from Geelong to Bendigo through Ballarat, the inclusion of passenger service infrastructure in the Murray Basin rail upgrade and an integrated container rail shuttle system operating between the port of Melbourne and suburban intermodal terminals to provide an alternative to trucks. An improved regional bus network could provide good services within and between regional centres, with the added benefit of providing independence to vulnerable groups, such as the elderly and people with disabilities. Getting people out of cars and onto trains and buses will reduce the number of cars on our roads and in turn reduce the number of accidents and ease congestion on highways.

It does not help our communities that an unreliable public transport system means that they have no confidence in being able to use public transport as an option. If last night was any example, in metropolitan Melbourne our public transport system is antiquated, falling apart and there is no guarantee that you are going to get home if you start your journey in the morning. Is it any wonder that those communities who are some distance from where they work or where they need to be educated or go to health services turn to their cars? It is because there is no guarantee they will get home where they do have public transport — but of course many Victorians do not even have that option.

One of the other benefits of improved transport options is that they reduce dependence on fossil fuels. The burning of fossil fuels is a major contributor to climate change, which will in turn marginalise a lot of farmland in Australia. Improved public transport is a win for rural communities, a win for business and a win for farmers and the environment. An inquiry of this nature is an opportunity to explore and examine the issues, and the Economic, Education, Jobs and Skills Committee is the appropriate place for that to happen.

In summary, the Greens will support this motion so long as it is part of a broader effort by this Parliament to consider improved service provision to regional and rural areas, particularly with regard to public transport alternatives.