Labor finally told the truth today about its rollback policy when frontbencher Joel Fitzgibbon revealed to Parliament the ALP would abolish the $500 million fuel subsidy going to rural Australia.
"The member for Hunter pledged that the Labor Party will abolish the $500 million fuel grants scheme to rural and remote Australia," the Minister told Parliament.
"Finally, we have a snapshot of rollback.
"And that snapshot is that rural and regional Australia is going to be $500 million worse off because the 1c and 2c a litre subsidy going out to them, that started on 1 July, ends if the Labor Party ever comes into Government.
Joel Fitzgibbon said today:
"Labor has a number of commitments to petrol prices. . Taking the exact opposite approach of those that sit opposite.
"The $500 million fuel grants scheme largely goes straight to the major oil companies."
This is incorrect. The Fuel Rebate Scheme has been declared under the Price Exploitation Provisions in Part VB of the Trade Practices Act. This means the 1c and 2c rebate must be passed on to consumers by fuel wholesalers and retailers. Failure to do this could result in a $10 million fine.
The Minister said: "In the tradition of John Della Bosca, Joel Fitzgibbon, in a moment of breathtaking honesty, today told the truth about Labor' policy on fuel and tax. And the people in rural Australia will cop it sweet."