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AAA Warns the Government Not to Renege On Its Commitment to Motorists

25.2.2011

Mike Harris, Australian Automobile Association (AAA) Chief Executive, said "The carbon price should be part of the existing fuel excise. This was the case with the original emissions trading scheme (ETS) and AAA calls on the Government and the Prime Minister to honour their previous commitments to offset any carbon tax on fuel with a corresponding drop in excise."

Yesterday's announcement by the Government is long on rhetoric, short on detail, and littered with opportunities for the Government to renege on commitments.

The Government's commitment to motorists under the emissions trading scheme clearly recognised that the current fuel excise regime overtaxes motorists. This unfair tax regime should be overhauled before any further tax is imposed on motorists. The Government's commitments to date were a positive step in this direction.

Mr Harris added "There is a noticeable lack of detail in the announcement. AAA calls on the Government to put detailed proposals on the table so that meaningful and detailed consultation can occur with all community interest groups."

AAA and its constituent clubs, which represent more than 6.5 million motorists, expect the Australian Government to honour its commitments and remove any uncertainty about a carbon price increasing costs to motorists.

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