Michael Darby (Location) writes: (Opinion)
If there are legitimate goals of public policy beyond defending Australia from invaders and protecting the lives and property of Australians from criminals, then high on the list should be the removal of impediments to the production and distribution of large quantities of high-quality, inexpensive food; for sale to Australians and to the hungry people of the world.
Expensive fuel has an adverse impact at every stage. There is no moral justification for any tax of any kind on fuel used in agriculture.
Cartoons: supplied by Victorian Cattle Producer - Jenny Bird
It is acceptable for an excise to be levied on fuel used for road transportation, but only for repair, maintenance and construction of roads, and that statement should not imply approval of governmental performance of these activities.
The total investment by all levels of government in Australia in operating, maintaining and adding to the road networks is estimated by Austroads at A$6 billion per annum.
The total of fuel excise (presently for petrol 38.1 cents per litre, plus one eleventh of the bowser price as GST) is approaching $14bn per year. Which means the involuntary contribution by vehicle operators to consolidated revenue through excise is at least $7bn per year.
The Opposition is proposing a 5 cent per litre cut in fuel excise, described as worth a $1.8bn per year rebate to vehicle operators.
Extrapolating from ABS 2006 figures registered vehicles are likely to consume about 30 billion litres of petrol and 14 billion litres of diesel in calendar year 2008. If the respective pump prices average respectively $1.50 and $1.70 per year, for the calendar year GST on petrol will be around $4.1bn and GST on diesel will be around $2.2bn.
That makes an excise plus GST total exceeding $20bn ripped out of motorists, $14bn of which is an unearned windfall for Australian governments.
The Brendan Nelson proposal represents a very modest reduction of about 9% of the total impost or about 13% of the rip-off component. It is actually less than the increase in GST on fuel which will have accrued from recent price increases.
SHORT TERM RELIEF
Some genuine short-term relief will be afforded vehicle operators by trebling the Brendan Nelson offer.
There are of course anti-motoring, anti-transport organisations which delight in high fuel prices and which oppose any reduction in excise. They include The Greens and the Public Transport Users Association.
The Greens, the self-appointed priesthood of the global warming pseudo-religion, want to reduce the Earth’s capacity to support humanity, and expensive fuel is part of their strategy.
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LONGER TERM RELIEF
There are two aspects to long term relief for liquid fuel prices worldwide. The first is allowing the market place to provide appropriate substitution for liquid fuels.
It is bleedingly obvious that nuclear generation of inexpensive electricity offers major opportunities for accelerating the switching of tasks from liquid fuel to electricity. Those tasks include irrigation, cropping and many aspects of mining. The future of motor vehicles will shift progressively towards electric power, provided that nuclear energy is allowed to play its proper role.
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The second aspect is removal of artificial impediments to petro-carbon exploration. Bans on drilling in Alaska, in Antarctica and along a significant percentage of the Australian coast are simply ridiculous, a reflection of pseudo-religious extremism. Australia should set an example in both aspects.
The Australian Government should call immediately for expressions of interest for the establishment of nuclear reactors on Commonwealth land around the nation, and cancel all bans on drilling, onshore and offshore.
Setting aside all other considerations, if we do not act to reduce the fuel cost component of primary production, people will die. And in due course they will die in millions.
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You can read more of Michael Darby by visiting his web site.
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Quality Used 4×4’s, 4Wd’s, Utes & Wagons - Sale
Used Farm Machinery - Tractors, Implements Sale
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Have your Say!
What are you paying for Fuel in your part of Australia / The USA or where ever you are?
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