Re: Good News for Rail Fuel taxes

["News" <jonest@senet.com.au>]

>In his speech last night, the PM John Howard announced that rail would now
>be eligible for the same reductions in fuel excise which will apply under
>the GST regime to heavy road vehicles, ie those over 20 tonnes generally
and
>between 4.5 tonnes and 20 tonnes in country areas.   At least this goes
some
>way to restoring a level playing field.

I can't see how this is good news.  Effectively it means that both heavy
truck and rail will pay no "road user charges".  Rail will still have to pay
a "rail user charge" and heavy trucks nothing!  There will now be a
(government created) significant financial advantage in favour of the road
transport industry.  Road will lower it's costs and rail will have to
contract in size.  Al because there is no competitive neutrality in the
governments land transport policy.