Greens backflip ends $4.2bn fuel excise increase

David Crowe
JUNE 24, 2014
THE AUSTRALIAN
MOTORISTS will be spared a $4.2 billion increase in fuel excise after a backflip by the Greens put the government’s budget measure in doubt.
The Greens have decided to oppose the increase in fuel excise and vote with Labor and others to torpedo the change in the Senate.
With minor parties also objecting to the changes, the government now appears highly unlikely to get the revenue measure through the parliament.
The changes, announced by Joe Hockey in the May budget, reinstate the indexation of fuel excise by the consumer price index to undo a freeze imposed by the Howard government in 2001.
The indexation was forecast to recoup $4.2bn from motorists over the four years to June 2018.
After allowing for deductions, the budget measure was expected to add $2.2 to federal revenue over the four years.
Greens leader Christine Milne attacked Tony Abbott for planning to use the fuel excise increase as a “revenue raiser” to put more money into road construction.
Asked if she had been “rolled” by her colleagues, Senator Milne said: “Not at all,” and said it was the position she had taken to the Greens meeting.
“Of course it’s a difficult issue for us because we want to see people use less polluting fuels,” Senator Milne told reporters.
“But what we will see if we facilitate this is $45 billion going into roads — roads, roads and roads across the country, no public transport, no urban rail, no fuel-efficient vehicles, just roads.”
Senator Milne would not say whether the outcome of the Greens party meeting was unanimous, saying that was confidential.