Call for fair share of Federal fuel levy renewed

18/8/93

Transport Minister Eric Charlton has renewed his call for the Commonwealth to allow Western Australia to collect up to $132 million of the Federal fuel levy for road building following last night's Federal Budget.

"Western Australians are going to be asked to contribute even more through fuel tax to Canberra with no guarantees that the money will be returned to roads," Mr Charlton said.

"Under the current regime, the State is not getting a fair share of return for what it contributes.  The increases will just see more money raised by the Federal Government through road users going to other areas of expenditure."

Mr Charlton has asked the Federal Government to allow WA to collect six cents per litre from the current Federal fuel levy of 26 cents a litre.

This would give WA a secure funding base of about $132 million per annum to finance work on its share of the national highways system.

Western Australia's share of the national road funding pool in 1993-94 was 8.2 per cent, or just over $97 million.

The move would also reduce costs by eliminating duplication between the Commonwealth and State in administering collection of that portion of the tax.

Mr Charlton described the Federal Budget measures as overly aggressive and said that farmers, rural families and small business were the losers.

"Country people already pay higher prices for fuel than their city counterparts," he said.

"In addition, this very hefty increase in fuel tax is going to impact adversely on our transport industry and flow on to consumers in the form of higher prices for all goods and services.

"The fuel levy jumps immediately by three cents a litre for both super grade and unleaded petrol.

"In two years, super will cost 10 cents extra and unleaded five cents more.

"That means the Commonwealth will be getting 36 cents a litre from motorists for super and 31 cents a litre for unleaded.

"However, Commonwealth road funding for the States is declining, particularly in WA, which contributes more than 10 per cent of national revenue from the fuel levy.

"Canberra must return more money to roads, but the Budget does not address this issue.

Media contact: Dean Roberts 321 7333