Wilkie makes a stand on Tassie fuel prices

The Independent Member for Denison, Andrew Wilkie, has joined representatives of the Hobart taxi industry to oppose the introduction of an excise on LPG that threatens to cripple the local taxi industry and push up fares.

Federal Parliament is due to vote on the Taxation of Alternative Fuels Legislation Amendment Bill as early as next week which would slap a 12.5 cents-a-litre excise on LPG and punish motorists who have taken advantage of Federal Government subsidies to make the switch to the cleaner fuel.
“LPG is already as much as 20 cents-a-litre more expensive in Hobart than it is in Melbourne or Sydney, and this excise will push the price of LPG so close to petrol that it would scarcely be a viable alternative fuel,’’ Mr Wilkie said.

“This tax will have a patently disproportional effect on Tasmania, to the extent that I am very concerned that the market in Tasmania for auto LPG could collapse altogether.

“I cannot in all conscience, vote for an excise that will have such a negative impact on Tasmania.’’

Mr Wilkie said many taxis in Tasmania run on LPG and the impact of an excise on this already struggling industry would be catastrophic.

Mr Wilkie today met with Roger Burdon at Yellow Cabs Tasmania, which has a fleet of 55 taxis and engages more than 180 drivers.

“Roger tells me that 40 per cent of his vehicles operate on LPG and every one cent-a-litre increase in the price of LPG equates to a $200-a-week hit to his bottom line,’’ Mr Wilkie said.

“A 12.5 cents-a-litre tax will put his business under enormous pressure and add to the case for higher taxi fares.

“The people likely to suffer the most are probably the drivers who are already grossly underpaid on account of too many taxis been on the road.

“And that is the State Government’s fault, which flogs off taxi licences every time it needs more cash.

“Then of course there are the customers, who are already struggling with the rising cost of living.

“Remember many people who rely on taxis are elderly or disabled or infirmed. Many cannot afford higher taxi fares.’’

Mr Wilkie said introducing an excise on LPG made no sense nationally either.

“Remember successive federal Governments have offered subsidies to encourage people to convert their vehicles to gas,’’ he said.

“Why? Because, LPG is a more environmentally-friendly and cost-effective alternative to petrol.

“I understand why people who thought they were doing the right thing by the environment and their household budgets and took advantage of the subsidies feel duped at the prospect of this tax on LPG.

“A vehicle powered by LPG emits up to 13 per cent less carbon emissions than a petrol powered vehicle. This is a cleaner fuel – why slap at tax on it at a time the country is on the verge on introducing a price on carbon?’’
Andrew Wilkie, Independent Member for Denison