A roads and transport interim report recommendation to remove the current state government fuel subsidy has been met with concern by industry bodies and the Queensland Opposition.
The Local Government Association of Queensland (LGAQ) today released its interim report into the state's roads and transport infrastructure which recommended the scheme be scrapped to provide funds for road construction.
The inquiry, chaired by Queensland University of Technology economics professor Allan Layton, recommended the current fuel excise rebate of 8.3 cents per litre be used for road construction.
"By removing the subsidy, not only would vehicle registration costs be reduced, but more importantly, substantial wider economic, social and environmental benefits will flow to Queenslanders from the investment of those funds in much-needed road and transport infrastructure improvements," Layton says.
He says removal of the subsidy is supported by councils "representing more than 65% of the state's population" and organisations including Commerce Queensland, the Australian Industry Group and the Queensland Conservation Foundation.
However, Queensland Trucking Association (QTA) executive director Peter Garske fears jobs in regional and rural Queensland will suffer if the proposal goes ahead.
"I find it impossible to believe that regional Queensland is happy to accept increased costs in every aspect of their daily life as a consequence of an increase in freight rates," Garske says.
"The recommendation would put at risk a significant number of jobs in Queensland and reduce the economic competitiveness of all Queensland exporters.
"The Queensland public needs to be reminded that the current scheme means in reality that the Queensland government does not impose a fuel tax in the same way as is levied by every other state government in Australia."
Opposition Transport Minister Vaughan Johnson agrees regional and rural communities would bear the brunt of the proposal.
"I welcome the hard work done by the LGAQ inquiry into transport infrastructure funding ... but I do not believe that the final recommendations in relation to the fuel subsidy will be acceptable to regional and rural Queensland or the battlers," Johnson says.
"The last time the Beattie government tried on a back-door fuel tax, they got hammered by grass roots Labor Party members as well as people in regional and rural Queensland."
The report also recommended supporting public/private sector partnerships in infrastructure provision, user-pays mechanisms (such as tollways) and a continuation of the federal Roads to Recovery program beyond 2004.
The interim report is available at the LGAQ
website.