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AAA Welcomes Carbon Green Paper

16.7.2008

Australian Automobile Association (AAA) Executive Director Mike Harris today welcomed the Federal Government’s Carbon Pollution Reduction Scheme Green Paper and the acknowledgement that in recent years motorists have endured significant increases in the price of petrol.

“As a result of escalating petrol prices, motorists are facing strong incentives to reduce their fuel use. This has already resulted in motorists moving to smaller and more fuel-efficient vehicles, which are less carbon intensive,” Mr Harris said.

“The Government’s proposal to offset fuel taxes on a cent-for-cent basis in the first three years of the Carbon Pollution Reduction Scheme gives motorists five years to plan for potentially even higher fuel prices.

“AAA has always argued that motorists should pay their fair share and that there needs to be more transparency in fuel taxation. On this basis, we have argued for fuel excise to be abolished in favour of a fairer and more equitable system of road charges, ahead of the introduction of emissions trading.

“The Government’s proposal to remove part of the excise and replace it with a more transparent carbon price is potentially a first step towards a more progressive system of road charges.

“There is also a need for Governments to continue to introduce complementary measures which reduce fuel consumption and the emissions of all vehicles, including tackling traffic congestion — which can increase fuel consumption by some 30% in peak hour — and providing enhanced opportunities for the community to use public transport. Many of these measures are underway, but more is needed.

“We will be reviewing the specifics of the Green Paper and providing Government with a detailed submission on a range of issues, including the question of how periodic assessments of the fuel tax adjustments might occur.”

 

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