Mr SWAN (2:40 PM) —My question is to the Treasurer. Is the Treasurer aware that the consumer confidence index has recorded a 13-point drop, the eighth biggest drop in the history of the survey? Does the Treasurer accept that this is due largely to the impact of petrol prices? When will the Treasurer direct the ACCC to investigate petrol price gouging, as suggested by the Labor Party 51 days ago?

Mr COSTELLO (Treasurer) —I have seen the Westpac consumer confidence index for the month, and it is true that consumer confidence has declined to something like the long-term average. In the last couple of months there have been enormous volatilities, with a big decline after the interest rate rise back in March; a huge rise after the budget in May; and a recent decline, which could well be related to petrol

 As I said yesterday, petrol prices are punishingly high. These high petrol prices are punishing consumers. High petrol prices are not good for business, high petrol prices are not good for the government, and high petrol prices are not good for the economy. If anybody is welcoming high petrol prices, let me suggest to them that it is not in the interests of the Australian consumer or in the interests of Australian business. Unfortunately, as we know, the reason why petrol prices are increasing is the world oil price.

As to improper conduct by any oil company or service station operator or retailer in Australia, the ACCC is instructed to take action against them. It has full powers to take action against them. It does not need any recommendation from the government, but I give it on a daily basis. As soon as there is any evidence whatsoever of any improper market conduct, the ACCC will investigate and, if there is a breach of the law, it will take a prosecution and, if there is a conviction, it has heavy penalties at its disposal. It needs no instruction from me to do so; but, as I say on a daily basis, the moment it finds any evidence, it should do so.

Unfortunately, any action by the ACCC in Australia is not going to reduce the world oil price. Nor is it going to increase world refining capacity. We wish that it were the case that petrol prices could be reduced by a simple investigation or prosecution by the ACCC. As the member for Rankin said—and I know he is getting a lot of favourable mentions, and unfavourable ones:

They know that petrol prices are up around the world because of world oil prices, and they know that until such time as world oil prices come back down or refining capacity increases we will, unfortunately, have to live with high petrol prices. That is in nobody’s interests, but it will certainly not be ameliorated by opportunistic and cheap politics—unfortunately the kind in which the member for Lilley excels.