Nationals Senator Barnaby Joyce, today on his tour of Western Qld to examine the damage by the floods, was perplexed by the Treasurer's comments in regards the underlying inflation rate.

"Minister Swan has discovered when the oil companies have a virtual cartel like control of the Australian fuel market that they put the prices up to where it pleases them and there is nothing you can do about it unless you promote an alternate competing product.

"There is, however, the capacity to promote an alternate product for the internal combustion engines Australian motorists use, it's called ethanol, but you must have the conviction to take on the oil companies.

"Likewise, the retailers have the same ability to manipulate the market and take their returns basically to where they want, using the drought as a convenient excuse for an increase in return way beyond the increase in the price at the farm gate.

"Due to the lack of players in our market, the powers of the Trade Practices Act must be increased. If there was a multiplicity of players, there would be no requirement for a stronger Trade Practices Act to stand as proxy for the honesty and forces of competition which would automatically exist in the market if there were more players.

"It is marvellous the Labor Party has decided to have a multiplicity of enquiries. What is really needed is a resolution to the problem and apportioning the blame to a previous government means they have no solutions.

"Here are a few suggestions to help Treasurer Swan and the Labor Party:

1. Promote the role of independents in the retailing of fuel and groceries which can be done with the reintroduction of such things as the Sites and Franchises Act;
2. the mandating of ethanol;
3. the promotion of other bio-fuels to provide competition to the control oil companies have in an oil based fuel market;
4. provide a stronger Trade Practices Act so competing retailers can survive the unconscionable actions of larger players to put them out of business;
5. provide greater transparency for the Australian consumer to see the base price at the farm gate displayed on the products sold on the shop shelves so those who are paying approximately $2 for a litre of milk will realise the farmer only gets approximately 40c;
6. make sure the ACCC enforces the Birdsville Amendment to outlaw predatory pricing, now it has the capacity to utilise it.

"These actions will take some conviction. Let's see if Mr Swan is up to it."