Articles by Lachlan Heywood

Lachlan Heywood
Taxing gas guzzlers?
By Lachlan Heywood · 20 Dec 2007
A carbon tax is one of several so-called 'transparent' charges proposed by the RACQ to replace the Federal Government's 38.1 a litre excise charge.The idea of slugging motorists to combat climate change emerged yesterday as the Government prepared to release the findings of a study into petrol prices by the Australian Competition and Consumer Commission.The report is expected to show that motorists have in recent times been paying the price for reduced competition in the market.The RACQ's proposed carbon tax would be levied on petrol, with the revenue used by the big oil companies to buy credits to offset the industry's carbon emissions.RACQ external affairs manager Gary Fites said a 'fundamental overhaul' of motoring charges was needed to meet the challenge of climate change.“There needs to be a new paradigm which has benefits that are transparent and motorists can relate to and sends them clear signals about driving in congested conditions or using gas-guzzling cars,” Mr Fites said.The Government collects about $14 billion annually from its excise charge, of which only 15 in every $1 is spent on building, maintaining and planning roads.But in a separate report to be released today, economic consultants Access Economics said the Howard Government's decision to freeze the petrol excise in 2001 was 'bad policy.'It goes on to recommend the excise again be indexed to inflation.The ACCC inquiry heard how Australia's big four petrol companies were locked in a do-or-die battle for market domination, and motorists were paying the price.Oil giants Shell and Caltex were reportedly on a mission to destroy rivals BP and Mobil, the inquiry was told.Opposition competition policy spokesman Peter Dutton said Prime Minister Kevin Rudd had given the impression at the election that he would bring down petrol prices.“I believe leading Australians to believe that petrol prices would fall under Rudd was a lie,” Mr Dutton said. Is it fair to add a carbon tax just because someone chooses to drive an SUV, 4WD or even a van?  
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Shopper docket schemes threatened
By Lachlan Heywood · 07 Aug 2007
Petrol shopper docket schemes could be scrapped if Australia's consumer watchdog rules they are pushing up fuel prices.There is growing industry concern the schemes used by millions of supermarket shoppers to get 4 cents off per litre for their fuel bills may have backfired on motorists.Independent petrol companies and service stations, which blame shopper dockets for driving them out of business, have appealed to the Australian Competition and Consumer Commission.They argue the popular schemes are eroding competition and contributing to motorists being ripped off at the bowser.In Brisbane, supermarket affiliated petrol stations control an estimated 70 per cent of the unleaded petrol market. Skyrocketing petrol prices, which are biting household budgets, have become an election issue.An inquiry into the price of unleaded petrol was launched by the ACCC in June, which is also examining the structure of the industry, the extent of competition and barriers to 'efficient petrol pricing.' In its submission to the inquiry, Australia's largest independent petrol retailer United Petroleum said the shopper docket had lead to supermarkets "absolutely dominating" the retail market.“The ACCC must take steps to even up the playing field,” it said. It recommends the watchdog either scrap the scheme or restrict the discount to such a level that it cannot be used as a “predatory tool.”Analysis by Professor Joshua Gans, from Core Research, also raises doubts about the benefits of shopper dockets to motorists.“I urge the ACCC to take another look at these shopper docket schemes and use the data available to them to see whether these have improved or reduced the overall benefits of competition in petrol retailing,” he said.The Motor Trades Association of Queensland said the domination of the market by supermarkets and oil majors was impacting on “genuine sustainable competition”.It also expressed concern about the reduction in the number of service station outlets in small country towns, especially on major western highways.Dannie and June O'Connell, both 56 from Graceville, filled up their four-wheel-drive yesterday at a northern suburbs petrol station.The couple said they “benefited” from the discount petrol vouchers. “But we're not under any illusions that you pay more for your groceries to counteract for the fuel prices,” Mr O'Connell said. 
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