The Nationals’ Senator for Queensland, Barnaby Joyce, today cast doubt over whether the consumer will benefit to any significant degree as a result of the introduction of the Labor Government’s new FuelWatch scheme.

“There is not much point in watching someone rip you off, even if they do give you 24 hours notice.

“The fundamental problems with fuel pricing stem from the fact there is an oligopoly with control of the product, from the oil well to the bowser nozzle. This is reinforced by the very close working relationship between so called ‘competitors’ at the terminal gate where they buy off each other at agreed prices.

“Once the repeal of the Sites and Franchise Acts occurred in June 2006, a repeal supported by Labor, this enabled the accelerated vertical integration of market control which allows for the greater exploitation of the consumer.

“Mr Rudd’s FuelWatch scheme is hardly putting the hand on the hotplate of the fuel pricing problem and I don’t think he has the courage or commitment to really deal with the issue in a decisive form.

“Unless he can bring greater competition into the market then all you have are the theatrical trimmings of a solution with no real cure.

“There are three simple measures Mr Rudd could undertake which would benefit consumers far greater than what has been proposed thus far:

• Mandate Biofuels. Although not a panacea it would provide another product in the fuel market, the production of which is not controlled by the oil majors yet can be used in the fleet of internal combustion engines currently on the road. Ethanol, for one, can be delivered to service stations at a significant discount to the price of fuel. This will also bring about excess refining capacity, which goes looking for a home via a discount.

• Reinstate the Sites and Franchise Acts. This would break up the capacity for vertical integration. The Sites and Franchises Acts were introduced in 1980 for the specific purpose of stopping vertical integration. After strong lobbying by the oil companies, the Labor Party supported the Coalition in repealing the Sites and Franchises Acts. As I crossed the floor on this issue, they could have blocked it. This is a true indication of their colours.

• Provide a stronger Trade Practices Act. This would allow independents to operate successfully in the market place. Currently, independents get squashed due to their major competitor also being their supplier. The Trade Practices Act, in its current form, sits by and watches this occur.

“Unless implementing the above, Mr Rudd is just taking us for a ride and possibly with the same diplomatic aplomb in which a big statement is made but not backed up with adequate action. The consumer is left with their only satisfaction coming from the statement and the oil companies get satisfaction out of no real action. At the end of the chain, the working family continues to shell out from their pay packet."


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