Senator SHERRY (2:06 PM) —My question is to Senator Kemp, the Assistant Treasurer. Can the minister confirm that, under the new spatial diesel fuel conurbation, a trip between Queanbeyan and Canberra will qualify for the rebate but a trip between Melbourne and Geelong will not?

Senator KEMP (Assistant Treasurer) —What constitutes a trip, Senator Sherry?

Honourable senators interjecting—

The DEPUTY PRESIDENT —Order!

Senator KEMP —I am not sure what my colleagues are laughing at, but I would urge them to keep quiet so that Senator Sherry's question can be answered. We were delighted to announce to the public and to these chambers the new Diesel and Alternative Fuels Grants Scheme. This very important measure will be hugely welcomed in rural and regional Australia. This will deliver very substantial cost savings to the trucking industry, and I am delighted to note the very strong support that we have received from the trucking industry, from the farmers and from rural and regional Australia. One remaining issue needs to be clarified: whether the Labor Party will support the diesel fuel grants scheme. We must debate this issue very soon, because rural and regional Australia want to know where the Labor Party stands on this very important measure. My colleague Senator Sue Knowles is keeping a very close eye on what the Labor Party is proposing to do in these areas. We are keeping a very thorough checklist. But this is very good news. The grant can be used, depending on the vehicle—it has to first of all be an eligible vehicle—

Senator Sherry —What about Geelong?

Senator KEMP —I am going through your question. It has to be a vehicle used for transporting goods and passengers. It has to be used for a journey between a point outside a metropolitan area and another point outside a metropolitan area, between a point outside a metropolitan area and a point inside a metropolitan area or between two different metropolitan areas. We believe this is a very good scheme. As part of the agreement with the Democrats, which we have delivered on, Geelong and Melbourne are in one of the conurbations. So a trip between Geelong and Melbourne for a vehicle, which is defined in the legislation, would not be eligible for the grant.

Senator Sherry —Why not?

Senator KEMP —Okay, let me say why not. We went to the election and we wanted to give this grant to all eligible people, including those in metropolitan areas, but the Labor Party decided that it would not negotiate on this. The Labor Party decided that it would not have a bar of the diesel fuel grants scheme. (Time expired)

Senator SHERRY —Madam Deputy President, I ask a supplementary question. Minister Kemp, what is the rationale for Queanbeyan not being part of the Canberra conurbation when Geelong is part of the Melbourne conurbation? Do you agree with the very perceptive criticisms of the National Party member for Orange, Russell Turner, who criticised the country fuel rebates grants scheme by saying that it would not address the major problem for country motorists—the price difference between city and country outlets?

Senator KEMP (Assistant Treasurer) —If Senator Sherry does not think a massive cut in the price of diesel fuel in the order of 24c a litre does not help country areas, I believe that is a very worrying statement.

Senator Sherry —Madam Deputy President, I rise on a point of order, and it goes to relevance. It was a National Party criticism, Senator.

The DEPUTY PRESIDENT —There is no point of order.

Senator KEMP —One assumes that Senator Sherry asked the question because he actually supports that particular statement. So that only adds to our worries. We are very keen to hear the Labor Party go on record quickly and support the Diesel and Alternative Fuels Grants Scheme. If the Labor Party refuses to do this, it will be of very large concern in rural and regional Australia.

Senator Conroy —Come on, come to Benalla—the main street, on the corner.

Senator KEMP —And, I might say, particularly in Benalla.