Mr SNOWDON (3:40 PM) —My question is to the Prime Minister. Prime Minister, can you confirm that the Northern Territory government will on Saturday be removing its 1.1c a litre fuel subsidy for Territory motorists, including those from remote communities, some of whom already pay $1.40 a litre? Why are you allowing the Northern Territory government to effectively pocket more than half your GST fuel grant for remote areas? Will you guarantee that consumers will get the full benefit of the grants, not the Northern Territory government?

Mr FAHEY (Minister for Finance and Administration) —I am pleased to take this question. The opposition has, throughout question time today, made a series of assertions which effectively support the oil companies and endeavour to mislead the Australian people. What this is about is that the Australian taxpayers, through the federal government, will be giving some $2.2 billion in tax—

Mr Snowdon —I take a point of order on relevance, Mr Speaker. This question was about the fuel subsidy of 1.1c a litre that has been removed by the Northern Territory government.

Mr SPEAKER —The member for the Northern Territory has made his point. I noted the question. I could hardly rule the minister out of order at this early stage in the answer. He has had less than half a minute at this stage.

Mr FAHEY —Let me go back to that point. The simple fact is that, with excise reduction commencing from Saturday of some $2.2 billion, that takes up what the Commonwealth has been collecting for the states and territories ever since the High Court case which prevented the states and territories from imposing taxes. That is point No. 1. The second point is that, in the context of providing that benefit to motorists, it was struck at a rate of 90c, as the Prime Minister has said a number of times, and 6.7c per litre is the rebate, the reduction in excise, that is given. All Australians would expect the oil companies to give over to the motorists what they will make in the way of savings.

Mr Beazley —Mr Speaker, I raise a point of order on relevance. He has now spent over a minute, perhaps two, answering this question. What we have asked him is what his view is and whether it is a fact that the Northern Territory government, in reducing its subsidy, is going to pocket more than 1c of the 2c that is supposed to be available for people in remote areas.

Mr SPEAKER —The Leader of the Opposition has made his point regarding relevance and will resume his seat. I have only heard the minister referring throughout the answer to the cost of fuel, to what makes up that cost and to rebates that apply. I would have thought that was an entirely relevant answer. I call him.

Mr FAHEY —Again, as I have indicated, the reduction in excise that applies from Saturday does take into account the taxes that were once previously put on by the states and territories. The honourable member for the Northern Territory has referred to a specific amount, which he indicated in his question was being pocketed by the Northern Territory. I do not accept that at this point of time. Nevertheless, I am more than happy to examine the question in detail and see if there is any accuracy in it, get advice on the subject and advise the honourable member if there is anything in the way of substance.

On 3 February this year I noted a report in the Australian which referred to a 10c price hike in petrol over a period of three days. It went on to say that that price hike of 10c in three days included petrol excise—we have spoken about that today—and that oil companies had withdrawn discounts and rebates to petrol station operators. It referred to a weaker Australian dollar and higher world oil prices. Where was one member of the opposition when a 10c hike came in three days in February of this year? There was an acknowledgment that there are `many factors' in the prices. I further indicate to the honourable member for the Northern Territory that, whilst investigating the matters which he suggested in his letter, the Treasurer has written to the Northern Territory regarding this subsidy. I am prepared to provide to the honourable member full details of what was in that letter.