Mr MARTIN FERGUSON (5:48 PM) —I rise this evening to talk about the latest betrayal of the Australian community by the Howard government—that is, the latest fuel rip-off by the Howard government. This new rip-off, I suggest, should not be lost in the afterglow of the Howard government's rollover on fuel excise, a rollover that would not have happened without two things: firstly, without the Labor Party putting the betrayal under the microscope over the last six months and, secondly, without the Australian community wringing it out of the government at the ballot box in Queensland and Western Australia.

I might say that the Australian community is not yet finished with the Howard government. The latest fuel rip-off, which I put the minister on notice about yesterday, comes directly into the spotlight—it is the aviation fuel excise tax grab by the Minister for Transport and Regional Services and Deputy Prime Minister. The Howard government introduced location specific pricing for safety services provided by Airservices Australia. They are control tower, air traffic control and maintenance functions. With the actual cost of providing the services being charged at the location, the inevitable consequence occurred—it resulted in severe pressure on regional aviation services.

We saw major reductions in charges at capital city airports—those where there is high throughput, large volume and lots of international flights. The losers, regional and general aviation airports, were facing a huge increase in charges. Again, the Howard government did not think through the impact of their policy on regional Australia and services. Again, they were driven into a policy correction because of yet another tax grab by them. That correction came in the May 1999 budget when the transport minister imposed an extra 0.51c per litre on avgas and avtur. In the words from the budget paper, the transport minister, Mr Anderson, promised:

In that budget the revenue was estimated at $11.4 million. You would think that would mean Airservices would get $11.4 million, but no, Airservices got only $11 million in that year from that levy. So an obvious, undeniable rip-off occurred on paper of $400,000 in 1999-2000. But when you do a simple calculation of what the industry might have paid that year, further question marks arise over the extent of the tax grab.

In 1999-2000, a total of 5,126.1 megalitres of avgas and avtur were sold in Australia. A simple multiplication of total aviation fuel sold times the levy of 0.51c per litre shows a figure of $26.1 million. If that is what was actually raised in 1999-2000 from avgas and avtur—and the minister has promised the total amount to Airservices for towers—the rip-off is of the order of $15 million. The figures get worse in 2000-01. In that year the excise did not change—it stayed at 0.51c per litre and the promise was the same—but the minister only gave Airservices $7 million this year towards the promised purpose. That appears to be a rip-off of $19 million.

I gave the Minister for Transport and Regional Services an opportunity to explain this yesterday, and today he came into the House and fessed up. He admitted that he had raised more than he thought. He admitted that he has been sitting on a tax grab of major proportions. The issue is whether or not the minister came into the House today and said, `I admit it. Here is the money back.' No, he has flicked it off, yet again, to the budget processes. I also suggest to the House that the Australian taxpayer and the aviation industry know that it is code for, `It has gone to consolidated revenue—into the Treasurer's kitty.' Given the marathon campaign to extract the petrol excise rip-off from the Prime Minister and the Treasurer, we know that getting that money back out of the Howard government's kitty is going to be no mean feat.

But I say tonight that we will continue our campaign to ensure that the transport minister keeps his promise. We will work with the aviation industry to ensure that the rip-off ceases. The minister said that the total revenue to be raised through this measure would be used to help maintain air traffic control services at regional and general aviation airports. We will campaign with the industry to ensure it. The Australian people are sick and tired of the Howard government's fuel tax rip-offs. The Australian aviation industry cannot afford to fund the Deputy Prime Minister's tax grab. In essence, the Australian public are sick of the Howard government's deceitful lies. (Time expired)

Mr Lloyd —Withdraw!

Mr ACTING SPEAKER —I think the member for Batman should withdraw.

Mr Martin Ferguson —It was the Howard government, not an individual, Mr Deputy Speaker—`deceitful lies' and `tax rip-offs'. No individual is named.

Mr ACTING SPEAKER —I hear what the honourable member says, but the House practice is that it can apply to individuals in that way. We have had many examples on both sides of it being withdrawn. For the convenience of the House, I ask the member to withdraw.

Mr Martin Ferguson —I withdraw and suggest that the Howard government misled the Australian people about this tax incentive.

Mr ACTING SPEAKER —Without qualification. I thank the honourable member.

Ms Gambaro —Mr Acting Speaker, I object to the assertions made by the honourable member opposite. He is implying that all members of the Howard government lie.

Mr ACTING SPEAKER —He has withdrawn.