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Fishing Industry welcomes future petrol excise rebate
by Bob Lister,
Chief Executive of the Tasmanian Fishing Industry Council
With the price of petroleum fuels on the rise possibly to record levels there is some welcome relief on the distant horizon at least for some businesses.
Primary producers involved in fishing and forestry are the big winners of the Federal Government decision to implement major reforms to the fuel excise system.
It is good news for my seafood industry members but so far into the future that there will possible be two Federal elections before it takes effect, and only then if the Federal Government of the day still believes it is good policy.
After years of campaigning by the Australian Seafood Industry Council (ASIC) with strong support from TFIC and other State fishing industry councils the 38 cents per litre off-road diesel fuel rebate will eventually be extended to all petrol used in off-road seafood production.
From July 2008 fifty percent of the excise rebate (excise credit) will apply for petrol rising to 100 percent from July 2012.
The fuel excise credit arrangements will apply to all off-road use of petrol including outboard fuels (and LPG) as well as new eligible activities in fisheries including processing and refrigerating of fish onshore.
The expanded business credits for all off-road fuels will lower business costs and ultimately should lead to improved profitability as well as providing equity to all who participate in off-road activities.
In this regard the fishing industry has been paying full price for petrol since 1957 when the excise rebate for diesel was first introduced and the correction of this anomaly will enhance the viability of many fishing and aquaculture businesses.
TFIC has always had the view that the fuel excise is in the main a tax to fund road infrastructure and as fishermen do not use the road for fishing operations then all fuel used in fishing vessels should be free of excise.
Some members of our industry have received the announcement with a strong sense of cynicism. Simply put fishermen have interpreted the announcement as saying "vote for me twice and I will remove half of a tax that you should not have been paying in the first place, vote for me three times and I will remove it fully".
In a letter to the Prime Minister John Howard TFIC has very appropriately sought to accelerate the timetable for introducing the off-road petrol rebate with at least the part credit to be in place by 1 July 2006 and the full rebate no later than 1 July 2010.
We believe an acceleration of the timetable to these dates would achieve two important outcomes. Firstly it would hasten the removal of an unjust tax providing more immediate benefits to hundreds of commercial fishing families in Tasmania and thousands across Australia. Secondly it would dispel the cynicism surrounding the recent announcement by removing the vote for me twice argument and providing more immediate benefits in the upcoming term of government.
This decision is however a major victory for our industry Australia wide and despite the time delay is very welcome. Businesses will be able to claim petrol excise credits through their Business Activity Statement.
On the same subject the price of petroleum fuels used in the fishing and aquaculture industry has been steadily rising as international crude oil prices have reached their highest level in 20 years at more than $US44 a barrel.
The impact on our business activities has been severe and through ASIC we have raised this issue with the Federal Fisheries Minister Senator Ian Macdonald and the Shadow Minister Gavan O’Connor.
Also mentioned at the meetings was the costly delay by oil companies in passing on the benefits to consumers when the crude prices and $AUD fall. Both politicians were sympathetic to our concerns but claim international pricing and the financial policy is a matter for the oil companies to address. We will keep the pressure on.
We should not forget that both ASIC and TFIC lobbied for and achieved a restoration of the full 100% excise rebate for off-road diesel used in seafood production several years ago closing a gap that had emerged at up to 2.04 cents per litre. This success should also benefit off-road petrol users in our industry – eventually.
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