ATA NSW wants investigation into diesel prices

By: Jason Whittaker


The rising price of fuel continues to haunt the Rudd Government, with the New South Wales branch of the Australian

The rising price of fuel continues to haunt the Rudd Government, with the New South Wales branch of the Australian Trucking Association (ATA) calling for an investigation into diesel prices.

ATA NSW Manager Jill Lewis has written to the Federal as well as NSW governments highlighting the impact the cost of diesel is having on truck drivers. Lewis says truck drivers have contacted ATA NSW raising concerns they cannot meet escalating costs.

In her letter, Lewis outlines the combined effect fuel, truck repayments, insurance commitments and running costs are having on the industry. Adding to this is the fact sections of the industry cannot pass on all of the extra costs, according to Lewis.

"ATA NSW has urged the Governments to investigate the rising costs of diesel and the impact these increases are having on our industry and the reliant communities," Lewis says.

Her call for concrete action to be done to address fuel prices comes amid pressure from the Opposition to cut the fuel excise by 5 cents per litre. But the Opposition’s proposal has not gained the support of the ATA, which argues a reduction in the excise will equate to less in road funding because the excise is linked to the road user charge which funds road projects.

In response to rising fuel costs, which has seen the price of oil shoot above $133 a barrel, the Government is looking at removing the GST on fuel excise as part of its tax review.

Yet any reduction in the GST will mean less revenue for the states, a situation not lost on NSW Treasurer Michael Costa. He estimates NSW would lose some $400 million a year if the Government removed the GST.

And as all the states must agree if there are to be any changes to the GST, Costa says Rudd will not have the support of the Iemma Government unless he compensates the State for lost revenue.

According to Queensland Premier Anna Bligh, the State will lost about $300 million if the Rudd Government follows through on removing the GST.

You can also follow our updates by joining our LinkedIn group or liking us on Facebook