Assistant Treasurer, Senator Rod Kemp, today slammed NSW Fair Trading Minister John Watkins’ attempt to pass his responsibilities onto the Federal Government.
"Mr. Watkins claims to have raised the issue of toluene in November last year. This is not the case." Senator Kemp said.
"In fact, the toluene scam has only recently become a significant issue."
"In October last year, I announced measures to address petroleum excise evasion. These measures were implemented on 15 November, 1999 and stopped dead in their tracks the methods of evasion raised in Mr Watkins’ letter to the Treasurer on 19 November. I wrote to Mr Watkins on 22 December explaining this.
"The action taken by the Federal Government has been acknowledged by legitimate players as being successful in stopping fuel substitution involving excise free product.
"The Federal Government has been advised by the Australian Taxation Office of the practice of using chemical toluene, imported free of customs duty, to extend petrol. The Federal Government will implement, as soon as possible, a remedy which will systemically address this practice.
"Any form of fuel substitution is clearly unfair competition and harms honest sellers. It will not be tolerated by the Federal Government.
"Instead of suddenly grandstanding on this issue, Mr. Watkins should ensure that the NSW Government continues to play its part in protecting NSW consumers from unscrupulous proprietors." Senator Kemp said.
MELBOURNE
1 March, 2000
Media Contacts: Richard Allsop Assistant Treasurer’s Office (03) 9650 7274