SUBJECTS: FuelWatch.
Assistant Treasurer Chris Bowen is the Minister responsible for the Government’s FuelWatch scheme; he’s been telling Sabra Lane that the Government is willing to talk to the Senators about their concerns.
SABRA LANE:
Chris Bowen, Senator’s Xenophon and Fielding say they can’t support the Government’s FuelWatch scheme as it stands. Is the scheme dead?
CHRIS BOWEN:
Well what Senator Xenophon has said today is that he wants to see more transparency in the petrol market, he wants to see more competition and we agree with him. Now, the bottom line is that FuelWatch is designed and will deal with the fundamentally uncompetitive elements the retail petrol sector in Australia; it will give consumers a lot more information about how to find the cheapest petrol in their area.
Now, if Senator Xenophon or any other Senator has suggestions that they can make to make the legislation more acceptable to them, which don’t undermine the Government’s fundamental policy objectives, to give consumers and motorists a better go, then we’d be happy to consider it. All legislation in the current environment is requiring discussion and negotiation to get through the Senate; I’m particularly unsurprised that FuelWatch would be any different.
SABRA LANE:
Both men say they believe it will have detrimental impact on independent operators. Nick Xenophon said it’s had a terrible impact on Western Australia, where the scheme is in place now. Is that the case and how many independent operators have closed their businesses since FuelWatch started there in 2001?
CHRIS BOWEN:
Well all the evidence released in Australia is that there is no negative impact on independents fuel operators. The number of independents in Western Australia has gone down by no more than any other state or territory in Australia and indeed independents have reduced in numbers around the world, so there’s no evidence that there’s any link between FuelWatch and the reduction of independents at all.
But, as I say, if Mr Xenophon has concerns, as always, we’re happy to talk them through with him and we’re happy to see this through the Senate in a way that meets as many people’s concerns as possible.
SABRA LANE:
Well under the plans as they stand, retailers will have to notify their prices a day ahead and can’t change them for 24 hours. The Senators say that this can harm the smaller independents. Are you open to having a scheme that allows retailers to drop their prices without being fined?
CHRIS BOWEN:
Look, the fundamental elements of FuelWatch are that there needs to be price certainty. People need to know when they go to the service station, if they’ve looked up the price in advance, they know what it is when they get there. Now, if there are ways they can meet those concerns, which the Government can talk through with those independent cross bench Senators, we’d be happy to do so.
The cross bench Senators and the Government are coming from the same direction. We want to see more transparency and competition in the fuel market. The only people opposed to that transparency are the opposition. They’ll oppose FuelWatch, which means we’ll have discussions with the other Senators as we’ve begun to do and were always going to need to do.
SABRA LANE:
The Senators today said that Treasury hasn’t released all of its modelling, that alarm bells are ringing. Why won’t the Government release all that modelling? The Government says it’s big on transparency here, why won’t it release all the modelling?
CHRIS BOWEN:
Sorry, I’m not sure what you’re referring to there; I have not seen those comments in relation to modelling. The ACCC’s done very extensive modelling on the FuelWatch scheme and that’s all been released.
SABRA LANE:
Well both Senators this morning said they have an issue with that because they claim the Government is withholding all that modelling.
CHRIS BOWEN:
All the modelling that’s been done, all the econometric modelling that’s been done has been released, it’s in the ACCC’s report.
SABRA LANE:
You believe the Senators are misguided on this point?
CHRIS BOWEN:
I’d be happy to talk to them about that, because the modelling, and this has received extensive publicity, the modelling that the ACCC has done in its report and subsequently in consultation with the Australian Treasury has been released.
They may be referring to the raw data. Now, the raw data was supplied by Informed Sources and their agreement would be needed for it to be released. The ACCC’s sought that agreement and it hasn’t been forthcoming.
SABRA LANE:
So the company doesn’t want that information released?
CHRIS BOWEN:
That’s correct. They only want to release it to people who they choose to release it to, if that’s what the Senators are referring to.
SABRA LANE:
I believe that is, and they’re calling for full transparency.
CHRIS BOWEN:
Well the ACCC would be happy to release it if they receive permission from the firm which supplied it. They’d be equally happy for the firm to release it generally.
SABRA LANE:
It looks to be a sticking point. Are you going to try and force this?
CHRIS BOWEN:
Well again, I’m more than happy to talk through any issues they have and any modelling that we have has been released. The raw figures it was based on, we would release if we were contractually able to and we asked to be contractually released to make that information publicly available.