7-30 report on fuel excise

[mauried@commslab.gov.au (Maurie Daly)]

Dont know whether anyone saw this report last night,but it was mainly about 
the effects of the reduction in diesel fuel excise and the effects this would 
have in regards to the road freight industry.
The report was mainly about the increased amounts of diesel fuel that will be 
consumed by trucks , and its effects on health and pollution.
However one disturbing fact that came up in the program was in relation to an 
interview with a representative of the Road transport industry who indicated 
that the fuel excise reduction would allow the road freight industry to get 
back up to 50% of NRCs current annual loading.
Its not secret that the effects of the fuel excise reduction , whilst it 
benefits rail , benefits road much more simply because road is a much greater 
user of diesel fuel than is rail , and fuel excise is the only tax that road 
users have to pay, whereas rail users have to pay the tax plus rail access 
charges , (also a tax).
Rail Access charges plus fuel costs are now Rails highest cost component, 
greater than salaries.

A lot of rail commentators rightly indicate the enormous imbalance in the 
amounts of funding for road and rail , and point to the fact that Govts need 
to spend much more on rail , mainly in the areas of infrastructure 
improvements.
Whilst this is common sense , it doesnt however in the short term , do much 
about the running costs for Rail Operators, ie they will still have to pay 
fuel excise and track access charges,so any benefits from infrastructure 
improvements will be only incremental and long term.
A better solution , in the short term would be to spend nothing on improving 
rail infrastructure , and simply waive all track access charges , for say 5 to 
10 years.
This puts rail roughly on a level playing field with trucks as far as daily 
operating costs are concerned.
It doesnt of course address the imbalance of the infrastructure spending 
imbalance,but being pragmatic and given recent history , I cant see the Feds 
or anyone else , either Liberal or Labor doing anything about the Neville 
report.
Just another rail inquiry that will gather dust.

cheers
MD