National Party MP Stuart St Clair argues the Labor Party should support wider access to the diesel grant for the transport industry – including operators in Sydney, Brisbane and other metropolitan areas with vehicles of 20 tonnes gross vehicle mass or less.
St Clair's challenge, raised during the Parliamentary debate over the extension of the grant, comes in the wake of the Shadow Transport Minister Martin Ferguson's claim that the Howard government implemented Labor policy in extending the diesel grant to June 30, 2003.
The extension, which has been passed by both Houses of Parliament, delays the introduction of the Energy Grants (Credits) Scheme until July 1, 2003 or earlier. The latter will be determined by the ongoing Fuel Tax Inquiry, which is expected to report in March 2002.
In Parliament, Ferguson claimed a ministerial briefing document – dated March 2001 – proved "in black-and-white" that the government had done nothing for 18 months to develop a policy on the form of Energy Credits.
Looking forward, Labor MP Warren believes more fuel taxes should be spent on strategic regional roads if the government is serious about improving the competitiveness of primary industry.
"Approximately 90% of all freight movements into the Northern Territory come by road-train," he says.
"You do not have to be Einstein to work out how important a contribution (the diesel grant) makes to the Territory economy and to the Territory lifestyle.
"The costs involved in maintaining a road-train to travel up and down the Tanami Road are roughly double the costs of maintaining a road-train up and down the Stuart Highway.
"So there are significant added costs for consumers ... for products off the Tanami Road."
Democrat Senator Lyn Allison is now a lone political voice in failing to give unqualified support to diesel grants. Allison is keen to see the Energy Credits Scheme implemented and reflected on the government's lack of political will.
"We could have a rebate that varies with fuel and engine; provides energy efficiency of existing diesel engines; brings forward the ultra-low-sulphur diesel fuels, since this would give the most significant greenhouse gas reduction; and allows government to subsidise catalytic converters," she says.
"Perhaps there is a need to introduce standards for after-market conversions for CNG and LPG, including dual-fuelled vehicles.
"Some responses to the discussion paper suggested subsidising alternative fuels, and doing so for off-road, on-road and medium-sized vehicles."